SOP 50 10 8.1, effective October 1, 2026, is the SBA’s updated operating guidance for 7(a) and 504 loans. It outlines key borrower eligibility, ownership, underwriting, documentation, use-of-proceeds, collateral, and acquisition requirements.
Key Borrower Requirements
- Eligible for-profit U.S. business
- Meet applicable SBA size standards
- 100% direct and indirect ownership must satisfy current SBA citizenship requirements
- Demonstrate sufficient ability to repay
- Use proceeds for an eligible SBA business purpose
- Meet applicable equity injection requirements
- Provide required financial, ownership, tax, and identity documentation
- Comply with applicable personal guaranty and collateral requirements
- For acquisitions, meet additional rules for valuation, seller involvement, equity sourcing, and Quality of Earnings when required
Disclaimer: This is a general educational summary only. SBA rules and lender requirements may change. Final eligibility and approval are determined by the participating SBA lender or CDC.