10 Things Every SBA Business Acquisition Credit Memo Must Address Under New SOP 50 10 8.1 — Wed, Dec 16

Cash Flow, Business Valuations, Equity Injection, Seller Financing and Credit Documentation

Coleman Professional Webinar Training
Wednesday, December 16, 2026
2:00 p.m. Eastern
1:00 p.m. Central
11:00 am Pacific
Recording and e-certification provided

An SBA business acquisition credit memo must demonstrate that the purchase price is supported, repayment capacity is sufficient, equity injection requirements are satisfied and the transaction meets SBA eligibility and underwriting standards.

Under SOP 50 10 8.1, effective October 1, 2026, lenders face updated requirements for acquisition cash flow analysis, Quality of Earnings, business valuations and change-of-ownership transactions. These requirements affect both the lender’s credit decision and the documentation supporting the approval.

For experienced SBA lenders, the challenge is determining whether the financial analysis, transaction structure and supporting documentation are sufficient to approve the loan. An acquisition may involve strong historical earnings but an unsupported purchase price, seller financing that does not meet injection requirements, or cash flow adjustments that require additional analysis.

Join Michael Bland, Chief Credit Officer at Lendesca, for a practical working session examining ten areas that SBA business acquisition credit memos must address, as applicable to the transaction. Michael will discuss how an experienced credit officer evaluates these issues and documents the lender’s conclusions under SOP 50 10 8.1.

What Michael Bland Will Cover

1. Change-of-Ownership Classification: Identifying initial acquisitions, business expansions and owner buyouts, and applying the correct SBA underwriting requirements.
2. Purchase Agreement and Loan Structure: Documenting purchase price, allocation of proceeds, eligible project costs and the proposed financing structure.
3. Buyer Qualifications and Management: Evaluating the buyer’s industry experience, management capabilities, ownership eligibility and business transition plans.
4. Historical Cash Flow and Debt Service Coverage: Analyzing earnings, allowable adjustments and repayment capacity, including the 1.25x DSCR requirement for initial acquisitions and restrictions on projections.
5. Quality of Earnings: Determining when a report is required, evaluating its findings and reconciling adjusted earnings with the lender’s cash flow analysis.
6. Business Valuation: Supporting the acquisition price, meeting SBA valuation requirements and addressing purchase prices that exceed the supported business value.
7. Equity Injection: Verifying the buyer’s required contribution, documenting the source of funds and determining whether the injection meets SBA requirements.
8. Seller Financing: Evaluating seller notes, standby agreements and when seller debt may qualify toward the required equity injection.
9. Collateral and Guarantees: Documenting available collateral, lien positions, required guarantees and compliance with applicable SBA collateral requirements.
10. Credit Recommendation and Risk Mitigants: Bringing the financial analysis, business valuation, management assessment and transaction risks together into a supported approval recommendation.

Your Instructor

Michael Bland is Chief Credit Officer at Lendesca and brings more than 30 years of SBA lending and credit experience. His background includes senior credit leadership, loan underwriting, credit policy and the evaluation of repayment capacity for SBA 7(a) and 504 transactions.

Who Should Attend

SBA underwriters, chief credit officers, credit analysts, SBA program managers, loan approval officers, business development officers and lending executives responsible for business acquisition transactions.

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How the Webinar Works

We use Microsoft Teams as the Webinar Platorm

Recording
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Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.

Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.

The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.

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Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com