Resources

The SBA’s new SOP 50 10 8 introduces significant changes for the 7(a) Small Loan program, effective June 1, 2025. Lenders must now provide detailed justification in their credit memorandum when 50% or more of a loan over $50,000 is for working capital. This change is tied to new, stricter collateral requirements, mandating a lien on all of the applicant business’s fixed assets until the loan is fully secured. These updates reflect the SBA’s increased focus on stronger underwriting and risk mitigation. Lenders need to adapt their processes to meet these heightened documentation and collateralization standards to continue effectively providing working capital to small businesses.

With the SBA reinstating its Franchise Directory under SOP 50 10 8, the rules for franchise lending are changing. Effective June 1, 2025, lenders will need to rely on the Directory to verify a franchise’s eligibility, shifting the review burden from the lender back to the SBA. This guide breaks down the key changes, including how to get a brand listed on the Directory and what the recently announced recertification deadline extension to December 31, 2025, means for you and your borrowers.

The landscape of SBA lending is always evolving, and with the effective date of SOP 50 10 8 on June 1, 2025, one crucial aspect making a significant return to traditional principles is equity injection. For lenders and borrowers alike, mastering these renewed requirements is paramount to successful SBA loan applications.

SOP 50 10 8 brings major changes to the 7(a) Small Loan program. Our guide for lenders covers the new $350k loan max, SBSS scores, and underwriting rules.

The SBA is revitalizing the “Credit Elsewhere” rule in SOP 50 10 8. Lenders must now perform a more rigorous and documented assessment of a borrower’s ability to obtain conventional credit.

The SBA has clarified its stance on Merchant Cash Advances in the new SOP 50 10 8. SBA 7(a) loan proceeds cannot be used to refinance this type of high-cost debt.

The SBA’s SOP 50 10 8 raises the minimum SBSS score to 165 for 7(a) Small Loans. Learn the new underwriting requirements for loans up to $350,000.

A lender’s guide to the new SBA citizenship rules in SOP 50 10 8. Understand the strict requirements for owners, guarantors, and Lawful Permanent Resident (LPR) verification.

A lender’s guide to the new seller guaranty rules in SOP 50 10 8. Understand the requirements for partial ownership changes and structure compliant SBA loans.