SBA Form 1502 Complete Guide

SBA Form 1502 is the Servicing Agent Reporting Form required for all active SBA 7(a) guaranteed loans. Lenders, loan servicers, Certified Development Companies (CDCs), and any entity servicing SBA 7(a) loans on behalf of the lender of record must file this form monthly. It reports loan status, borrower payment history, outstanding balances, and compliance with SBA servicing requirements.

Form 1502 must be submitted by the 20th day of the month following the reporting period. For example, January activity must be reported by February 20th. The SBA rarely grants extensions, so servicers should establish internal processes to ensure timely submission. Late filings can result in penalties and compliance issues that may affect guarantee eligibility.

Form 1502 is typically submitted through the MySBA Loan Portal, the SBA's online platform for lenders and servicers. First-time users must register for portal access through their SBA district office. Some servicers may still use paper submissions for specific circumstances, but electronic filing through MySBA is now the standard method and ensures faster processing.

You'll need: SBA loan number, lender's loan number, borrower identifying information, original loan amount and approval date, current outstanding principal balance, accrued interest, last payment date and amount, delinquency status (if applicable), collateral descriptions and valuations, personal guarantee information, and documentation of any servicing actions taken during the reporting period.

Common errors include: using incorrect or outdated SBA loan numbers, miscalculating accrued interest or principal balances, failing to report delinquency promptly, omitting required servicing action documentation, providing incomplete or outdated borrower contact information, and missing the monthly filing deadline. Double-checking all loan numbers and calculations before submission can prevent most errors.

Late filing of Form 1502 can result in several consequences: penalties assessed against the lender or servicer, compliance issues that may affect future SBA loan approvals, potential impact on guarantee eligibility for the specific loan, and increased scrutiny from SBA during future examinations. Repeated late filings may result in suspension from the SBA 7(a) program.

Delinquency must be reported as soon as a loan becomes 30 days past due. Include: the exact number of days past due, the date the loan became delinquent, any collection actions taken, borrower contact attempts and responses, and any workout or modification plans in place. Accurate and timely delinquency reporting is critical for maintaining SBA guarantee eligibility.

Yes, if you discover errors in a previously submitted Form 1502, you should submit an amended form as soon as possible. Mark the form as "Amended" and include an explanation of the corrections being made. The SBA maintains historical records, so corrections should be submitted promptly to ensure accurate loan portfolio reporting.

The MySBA Loan Portal is the SBA's online platform for lenders and servicers to manage 7(a) loan reporting and servicing activities. It replaced older paper-based and email submission methods. Through MySBA, servicers can submit Form 1502, track loan status, access SBA communications, and manage guarantee-related documentation. Contact your SBA district office for portal access credentials.

Resources for assistance include: your SBA district office lender relations specialist, the SBA Lender Service Center (1-800-659-2955), the official SBA.gov website with SOPs and guidance documents, industry associations like NAGGL (National Association of Government Guaranteed Lenders), and compliance training programs offered by SBA throughout the year.

No, Form 1502 is only required for active SBA 7(a) loans. Once a loan is fully paid off or the SBA guarantee has been purchased, you no longer need to submit Form 1502 for that loan. Submit a final report showing zero balance and mark the loan as "Paid in Full" in the MySBA Loan Portal.

You must make reasonable efforts to locate the borrower using skip tracing, credit bureau reports, online searches, and known contacts. Report the last known address on Form 1502 and document your search efforts in the "Servicing Actions" section. Losing contact with a borrower does not excuse filing requirements, and may be considered inadequate servicing if not properly documented.

Report the exact amount received and the date of the partial payment in Fields 9-10. In the "Servicing Actions" section, explain the partial payment arrangement and whether it's part of a formal payment plan or a one-time occurrence. Partial payments do not necessarily cure delinquency—continue reporting the loan as past due based on the contractual payment schedule.

Submit an amended Form 1502 for the affected period as soon as you discover the error. Mark it clearly as "Amended Filing for [Month/Year]" and include a detailed explanation of the error and the correction. If the error affects guarantee eligibility or a pending claim, notify your SBA district office immediately via phone and email. Keep documentation of the original filing and the correction.

Yes, you can submit Form 1502 anytime after the reporting month ends and before the 20th of the following month. Many servicers submit within the first 5-10 days to allow time for corrections if needed. However, ensure your data is complete and accurate before submitting—early submission with errors is worse than timely submission with accurate information.

Form 1502 is specifically required for SBA 7(a) guaranteed loans. SBA 504 loans (Certified Development Company loans) have different reporting requirements through Form 1244. SBA disaster loans and other programs have separate reporting processes. Always verify reporting requirements based on the specific SBA loan program.

Penalties can include: monetary fines assessed per late filing, suspension from making new SBA 7(a) loans, potential invalidation of the SBA guarantee for the specific loan, increased oversight and examination frequency from SBA, and in severe cases, referral for enforcement action. The SBA takes reporting compliance seriously as it's essential for portfolio risk management.

Continue filing Form 1502 monthly throughout the bankruptcy process. Report the bankruptcy filing date, case number, chapter (7, 11, 13), and bankruptcy court jurisdiction in the "Servicing Actions" section. Update the loan status code to reflect the bankruptcy (typically code 4 for "In liquidation" or special litigation status). Maintain contact with SBA throughout the bankruptcy as guarantee purchase decisions may be affected.

Yes, the MySBA Loan Portal supports batch upload of Form 1502 data for servicers with multiple loans. You can typically upload data via CSV or Excel templates provided by SBA. This is especially useful for large servicers with dozens or hundreds of SBA loans. Contact your SBA district office for batch upload instructions and templates specific to your loan management system.

Your Form 1502 must reflect the interest calculation method specified in the SBA loan documents (typically actual/360 or 30/360 day count convention). If your internal system uses a different method, you must manually adjust the reported figures or configure your system to match SBA requirements. Consistent discrepancies in interest calculations can trigger SBA examinations and compliance reviews.

The selling/transferring servicer files Form 1502 through the date of transfer, marking the final report as "Loan Transferred to [New Servicer Name]" with the transfer date. The new servicer begins filing Form 1502 starting the month after transfer. Both servicers must coordinate with SBA to update the loan servicing records in MySBA Loan Portal. SBA approval may be required before the transfer is effective.

Retain copies of all Form 1502 submissions, supporting documents (payment records, borrower communications, appraisals, insurance policies, UCC searches), amendment records, and SBA correspondence for at least 3 years after the loan is fully resolved (paid off or guarantee purchased). Best practice is to retain records for 7 years. Use secure electronic storage with backup to prevent data loss.

Yes, you can engage a third-party servicer or compliance consultant to prepare and submit Form 1502, but the lender of record remains ultimately responsible for accuracy and timeliness. Ensure any third party has appropriate SBA authorization and access to MySBA Loan Portal. Maintain oversight and review their filings regularly. SBA compliance violations will be assessed against the lender of record, not the third-party servicer.

Be specific and factual. Include dates, names of contacts, summary of conversations or actions, and outcomes. For example, instead of "Called borrower," write "Called borrower 2/15/2025, spoke with owner Jane Smith, she stated temporary cash flow issue due to delayed customer payment, promised payment by 2/28/2025." This level of detail demonstrates active servicing and protects your guarantee eligibility if issues arise later.

Form 1502 is the monthly reporting form for SBA 7(a) guaranteed loans, submitted by lenders and servicers. Form 1244 is the monthly reporting form for SBA 504 (Certified Development Company) loans, submitted by CDCs. They serve similar purposes but have different fields and requirements specific to their respective loan programs. Make sure you're using the correct form for your loan type.

If the borrower is current on payments but has disclosed financial problems, report the loan as "Current" (code 0) but document the situation thoroughly in the "Servicing Actions" section. Include the nature of the financial difficulty, steps being taken to address it, any financial statements or projections reviewed, and your servicing plan. This creates a paper trail if the loan becomes delinquent later and demonstrates proactive servicing.

No, there are no fees charged by the SBA for submitting Form 1502. It's a mandatory compliance requirement included in the lender's servicing obligations under the SBA guarantee. However, late filing penalties and fines may apply if you miss deadlines or repeatedly file inaccurate reports.

Extensions are rarely granted and only in exceptional circumstances (natural disasters, system outages, etc.). If you anticipate missing the deadline, contact your SBA district office immediately to request an extension in writing, explaining the reason and proposed filing date. Document the request and any response. It's better to file a partially complete report on time and amend it later than to miss the deadline entirely.

SBA offers: online webinars on loan servicing and reporting (check SBA.gov calendar), in-person training at SBA district offices and lending conferences, the Servicing Agent Guide (downloadable PDF with detailed instructions), SBA Lender Service Center phone support (1-800-659-2955), and periodic updates via the SBA Lender Notice system. Many industry associations also offer Form 1502 training as part of their professional development programs.