SBA Hot Topic Tuesday: New SOP 5010 8.1 Impacts Biz-Aq Loans, Small Loans

August 18, 2026

Bob Coleman
Founder & Publisher

SBA Hot Topic Tuesday: New SOP 5010 8.1 Impacts Biz-Aq Loans, Small Loans

SBA released SOP 5010 8.1, effective October 1, 2026, for loans receiving an SBA loan number on or after that date. Until September 30, lenders continue to use SOP 50 10 8.

There is a lot here.

The biggest change is business acquisition lending.

SBA has moved change-of-ownership transactions into a new Appendix 15 with four categories: Initial Acquisition, Business Expansion, Owner Buyout, and ESOP and Cooperative transactions.

Financial due diligence is required on every acquisition, and the Business Purchase Price, not the final SBA loan amount, determines the due diligence threshold.

DSCR requirements also now depend on the transaction.

Initial Acquisition requires 1.25:1. Business Expansion requires 1.15:1. Owner Buyout requires 1.25:1. ESOP and Cooperative transactions require 1.25:1.

SBA specifically says lenders may not rely on post-closing projections to satisfy the acquisition DSC requirement.

For Initial Acquisitions and Business Expansions with a Business Purchase Price of $3 million or more, lenders must obtain a Quality of Earnings report in addition to the valuation. The QoE must include a Cash Proof covering the trailing 12 months and the prior two fiscal years.

7(a) Small underwriting also changes significantly. SBA officially moves away from the SBSS screening framework and requires lender credit analysis, a minimum 1.10:1 DSCR, and review of the two most recent months of commercial bank activity to verify that all commercial debt has been captured.

There are other major changes.

Lawful Permanent Residents are now defined as ineligible owners or SBA-required guarantors. SBA requires 100% of direct and indirect owners and required guarantors to be U.S. Citizens or U.S. Nationals with their principal residence in the United States, territories, or possessions.

Owner Financial Statements now expire after 90 days instead of 120 days. Same Institution Debt may now be refinanced under PLP authority in qualifying circumstances. SBA also introduces MARC, a new revolving working capital product primarily aimed at manufacturers.

Bottom line for lenders: October 1 is not simply an SOP update.

Credit policy, acquisition underwriting, eligibility screens, documentation procedures, and staff training all need attention before FY27 begins.

Want the full analysis?

Subscribe to Coleman Report Premium for our detailed reporting on SOP 50 10 8.1, including the new change of ownership rules, underwriting requirements, lender implications, and what your team needs to do before October 1.

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