SBA Releases New SOP 5010 8 (Download Here!) RIP “Do What You Do”

April 22, 2025

Bob Coleman
Founder & Publisher

SBA Releases New SOP 5010 8 (Download Here!) RIP “Do What You Do”

All new materials from SBA available for download:

In the first major rewrite of SOPs in 5 years, SBA has wholeheartedly rejected the “do what you do” rule and has returned guardrails to the SBA 7(a) lending program.

The SOP 5010 8 was just released, and here is a preview of some of the major changes that will take effect June 1, 2025:

– Restoring a minimum 10% equity injection for startup loans and changes of ownership
– Reinstatement of the SBA franchise directory
– PLP lenders will no longer be able to submit loans GP
– The small loan amount is lowered to $350,000
– Minimal acceptable SBSS score raised to 165 from 155
– Merchant cash advances and factoring agreements are ineligible for debt refinance
– The lender must certify U.S. citizenship verification
– Individuals with a 2-year conditional Green Card are ineligible
– If hazard insurance is not available for collateral greater than $50,000, the loan is ineligible

Plus, many more changes.

The SOP can be downloaded HERE. Coleman will make the SOP available for purchase on Amazon.

View SBA’s Information notice HERE.

Lance Sexton will incorporate all the loan closing changes discussed in today’s SBA 7(a) connect call into tomorrow’s webinar for all rule changes since January 20th. He will include updates on equity injection, citizenship verification, and hazard insurance requirements from the new 5010 8. Register your loan closers and underwriters for a flat fee of $800.

Finally, Community Advantage lenders should attend next week’s Coleman’s Community Advantage SBLC Executive Retreat, as we will devote a high-level overview of the SOP changes affecting Community Advantage lenders in SBA’s revised small loan program.