SBA has released a Technical Updates (T/U) version of SOP 50 10 8, Lender and Development Company Loan programs, which will take effect for loans receiving an SBA loan number on or after June 1, 2025.  This release was announced via a message sent to subscribers to SBA’s Office of Capital Access (OCA) newsletters.  The T/U version of the SOP replaces the version of the SOP originally published on April 22, 2025.   

The SBA email includes temporary links to two versions of the new document and to the Information Notice that officially announces issuance of the T/U version of the SOP:  

  • SOP 50 10 8 with technical updates (“clean” final version – to be posted to the SBA website soon);
  • SOP 50 10 8 in track changes (this version cannot be posted to the SBA website because it is not compatible with screen readers used by the sight-impaired); and
  • Information Notice 5000-866746, Issuance of SOP 50 10 8 with Technical Corrections (to be posted to SBA’s website soon).

Both the Notice and the SBA email communication provide summaries of the major updates included in the T/U version of the SOP.  Key among those changes are:

  • Clarification regarding the requirements that only U.S. firms are eligible for 7(a) and 504 loans, and that all direct and indirect business owners must have a primary residence in the U.S., and the requirements that lenders must follow when an applicant business is owned by a U.S. National;
  • New requirement that lender must enter 100% of direct and indirect ownership into E-Tran;
  • Additional instructions regarding lender compliance with Treasury Department regulations relating to the Office of Foreign Assets Control (OFAC) sanctions list;
  • New mandate that lenders must check the Credit Alert Verification Reporting System (CAIVRS) to determine whether an applicant is ineligible for a 7(a) or 504 loan; 
  • Clarification regarding which out-of-pocket legal expenses a lender may pass on to a loan applicant;
  • Provision of a new alternative for IRS verification when the lender receives a “no records found” message, and clarification of the requirements relating to SBA Express and Export Express; 
  • For partial change of ownership transactions, clarification of the co-borrower, guarantor and collateral requirements;
  • Clarification that any 7(a) term loan may be structured with an initial interest-only payment period and may be sold in the secondary market after that interest-only period ends;
  • Clarification of the requirements relating to taking personally owned real estate on Standard 7(a) loans where there is a collateral shortfall;
  • Less-restrictive requirements for taking liens on vehicles; and
  • Clarification that “search funding” is not 7(a) eligible.

Please see the Notice and SBA transmission document for additional details, and please refer to the T/U version of the SOP for complete information on all Program Requirements.   

Also, as a reminder — per the original version of SOP 50 10 8, effective June 1, except for loans made to refinance same institution debt or, for International Trade loans only, when the collateral securing the loan will not be in a first lien position; lenders with delegated authority will be required to process all loans under that authority.  Please see NAGGL’s April 22 release for more information about this requirement and the special mailbox that SBA has set up to assist delegated lenders with loan-specific questions and requests for policy exceptions.

Upcoming Training on SOP 50 10 8 Technical Updates

NAGGL will be offering a special 3-hour webinar, Diving Into the Final Version of SOP 50 10 8, on June 5 (12 – 3 PM CT).  This course will provide an in-depth look at all of the changes in both the original and T/U versions of SOP 50 10 8.

NAGGL will also be offering a shorter recorded session covering just the changes between the original and the Technical Updates versions of the SOP.  This course will be complimentary for members who purchased the Diving into SOP 50 10 8 webinars on April 29 or May 1. Please keep an eye on your inbox for more information about this training.