What Is Required to Assume an SBA 504 Loan? Are SBA 7(a) Loans Assumable?Fortunately for borrowers, SBA loans, including the SBA 7(a) loan , are fully assumable with SBA approval. Another option to sell a business with an SBA loan is for the buyer to assume the loan. SBA loans are fully assumable with SBA approval. Assumption of Loan Requirement Letter for disaster loan servicing action request packages. About this document and download. This guide will address how to correctly fill out the Secondary Participation Guaranty Agreement, also known as SBA Form 1086. I have a 500k COVID EIDL with PG. I am selling my business and the buyer is assuming the loan. An assumable mortgage allows a home buyer to not just move into the seller's former house but to step into the seller's loan, too.