A guaranty repurchase (loan status “purchased”) occurs when a guaranteed SBA loan defaults and the SBA honors its guaranty — buying the guaranteed portion back from the secondary-market investor, or paying the debenture behind a 504 CDC second. The underlying loan is not forgiven and not yet charged off: it moves into active liquidation, with collections pursued under SBA rules.
“Purchased (not charged off)” is the clearest public marker that a workout is live: the guaranty has been paid, the recovery clock is running, and on a 504 project the bank still holds its first mortgage in front of the repurchased second — see who holds what in a 504.
Why credits like this reach a workout desk: bank noncurrent commercial real-estate loans have risen while reserve coverage slips at community banks (FDIC Quarterly Banking Profile), and roughly $957 billion of commercial and multifamily mortgage debt was scheduled to mature in 2025 — against a total market of about $4.8–5.0 trillion, ~38% of it held by banks and thrifts (Mortgage Bankers Association). See the CRE distress statistics hub for the full figures and sources.
Primary sources: FDIC Quarterly Banking Profile, Mortgage Bankers Association, and interagency (FDIC / OCC / Federal Reserve) guidance on CRE loan accommodations and workouts. Figures are directional and updated periodically; confirm the latest release before relying on a specific number.
No — the repurchase concerns the SBA-guaranteed piece only. The bank's conventional first mortgage remains outstanding and senior.
No — repurchase means the guaranty was honored and liquidation is underway; a charge-off is the later accounting recognition of loss, if recovery falls short.
It confirms default and an active workout without any private information — the status is public in SBA's FOIA data. Standing Bid Capital buys the bank first liens ahead of repurchased seconds. Request a confidential review.