September 28, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: SBA Releases SOP 50 10 8.1 Technical Update

SBA released a technical update to SOP 50 10 8.1 on September 25, less than a week before the new SOP takes effect Thursday, October 1.

SBA SOP 5010 8.1 Technical Update

SBA SOP 5010 8.1 Redline Version 

SBA Information Notice 

Hardcover Copy on Amazon available for $39.99

The updated SOP replaces the version SBA released in August. It applies to 7(a) and 504 applications received by SBA beginning October 1. Applications submitted through September 30 remain under SOP 50 10 8.

One change affects 7(a) Small and SBA Express change-of-ownership loans.

SBA now expressly permits both programs to finance changes of ownership under Appendix 15. An internal business valuation may be used when the business purchase price is $350,000 or less.

Those loans still must meet the same Appendix 15 debt service coverage requirements that apply to other acquisition loans. There is no reduced DSC test simply because the loan is processed under 7(a) Small or SBA Express.

SBA also clarified working-capital true-ups in acquisition transactions. Working-capital adjustments contained in the purchase and sale agreement are not treated as seller rebates and may be treated as cash to the borrower.

Special-purpose property acquisitions received another clarification. A single acquisition loan may carry an amortization longer than 10 years, up to 25 years, when the borrower is acquiring both the operating business and an owner-occupied special-purpose property whose value is substantially dependent on the business.

SBA also modified the Quality of Earnings rules. A QoE report previously prepared for the applicant may be used if it is accompanied by a reliance letter or a secondary review by another firm. The report cannot have been prepared by or for the seller.

For mixed-purpose 7(a) loans, SBA clarified that the lender may use a blended maturity. When at least 51% of the proceeds are used for real estate, the loan may have a maturity of up to 25 years.

The 504 changes include removal of the prohibition against a Third Party Loan amortization exceeding the 504 debenture term. SBA will allow the Third Party Lender underwriting analysis to be submitted directly to the Sacramento Loan Processing Center.

SBA reinstated collateral language from SOP 50 10 8 and clarified that the annual field examination requirement for a Working Capital CAPLine begins at $1 million.