Industry Insights
Staying Ahead of Change: Understanding the New SBA Servicing SOP 50 57 4
November 10, 2025
On November 1, 2025, the Small Business Administration (SBA) released its updated Servicing and Liquidation Standard Operating Procedure (SOP 50 57 4) — an important revision that redefines several areas of SBA loan servicing, liquidation, and guaranty purchase requirements.
While the timing coincided with a government shutdown, the new SOP remains fully effective, as SOPs pre-drafted and announced prior to a shutdown are not impacted by it. Our team at Lenders Cooperative was prepared for the release and immediately began analyzing the implications for our lenders and servicing clients.
What’s New in SOP 50 57 4
The update builds upon SOP 50 57 3.1, refining guidance across several key areas of SBA servicing and liquidation. Notably, the most impactful updates relate to Intensive Servicing — a growing area of focus for lenders seeking to proactively manage risk and maintain compliance.
Highlights of the new SOP include:
- Increase in liquidation thresholds — The personal property liquidation value threshold increases from $5,000 to $10,000 for certain actions.
- Updates to contact information for SBA loan servicing and purchase centers, ensuring consistency with other SBA procedural updates.
- New Paycheck Protection Program (PPP) record retention requirements.
- Revised guidance on the payment of SBA lenders’ annual service fees.
- New loan status category: “SBA Uncollectible” — designating loans where all collection efforts are exhausted and ready for Treasury referral.
- Alignment of servicing and liquidation rules with SOP 50 10 8, including guidance for loans with non-citizen owners.
- Integration of prior procedural guidance (SBA Procedural Notice 5000-866946) related to lender guaranty purchase requests and certain servicing actions, effective April 15, 2025.
What This Means for Lenders
At Lenders Cooperative, our Servicing team has completed a full review of the new SOP, comparing it to the current 7(a) Lender Matrix (issued December 1, 2024). At this time, no discrepancies have been identified between the matrix and the updated SOP. Until a new matrix is released, lenders should continue to reference the existing version (12/01/2024) for guidance.
We recognize that changes like these can impact day-to-day servicing operations, and our priority is to help institutions navigate them with confidence. From recordkeeping to liquidation plans, our team is providing proactive direction to ensure each partner remains aligned with SBA expectations.
Our Commitment to Lenders
As the SBA continues to modernize and clarify servicing standards, Lenders Cooperative remains at the forefront — ensuring our clients are not just compliant, but fully equipped to implement these changes effectively.
To provide further clarity on SOP 50 57 4, we’re releasing a pre-recorded 30 at Noon Webinar hosted by Chuck Evans, Executive Director of LSP Services. In this session, Chuck sits down with Rachel Hunsinger, Head of Servicing at Lenders Cooperative, to walk through the most impactful updates, including Intensive Servicing and the introduction of Uncollectible, and what these changes mean for lenders in practice.