Main Street Monday: SBA Replaces Its January 16 Small Loan 7(a) SOP Notice. Here Is What Changed.

February 23, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: SBA Replaces Its January 16 Small Loan 7(a) SOP Notice. Here Is What Changed.

SBA has already replaced a just-released procedural notice.

On January 16, SBA issued Procedural Notice 5000-875701, eliminating the SBSS Score for 7(a) Small loans, under $350,000, effective March 1, 2026. Last Friday, February 20, SBA rescinded that notice with Procedural Notice 5000-876777.

What this means. 

The major change is the added guidance for underwriters on analyzing 2 months of bank statements. 

January 16 version:

Required “two most recent months of commercial bank activity or statements” as part of repayment analysis.

February 20 version:

Still requires two months of commercial bank activity, but now explicitly states the bank activity must be used to confirm the commercial debts and obligations included in the DSCR calculation.

SBA adds a new safe harbor. If you calculate an acceptable DSCR and confirm obligations through two months of commercial bank statements, repayment ability is deemed satisfied.

Remaining unchanged:

  • SBA restructures the credit memo around two defined sections: Credit History and Repayment Ability. If you use a scoring model, you must now document the score and your acceptable approval range directly in the credit memorandum. 
  • Debt service coverage remains 1.10:1, but the calculation source remains your choice. You may use tax returns, financial statements, or projections with documented assumptions.
  • SBA will no longer provide an SBSS Score in E-Tran. Underwriting responsibility now sits fully with the lender.
  • Effective March 1, 2026.

For more details:

Join us tomorrow, February 24, for our previously scheduled live webinar at 2 pm Eastern, where we will walk you through exactly what SBA now expects when reviewing two months of commercial checking account statements. We will break down what “confirm” means, how to document it in your credit memo, and how to align your underwriting with SBA’s new safe harbor standard. 

Register for the webinar here.

If you want ongoing, executive-level analysis of changes like this, join me as a Coleman Report Premium Member.