During the April 22, 2025, 7(a) Connect Quarterly Update, SBA Administrator Loeffler formally announced the Agency’s issuance of SOP 50 10 8, Lender and Development Company Loan Programs. The changed requirements in the new SOP will take effect on June 1, 2025, and will apply to all loans receiving an SBA loan number on or after that date.
As part of the SOP roll-out, SBA issued Information Notice 5000-866746, Issuance of SOP 50 10 8 (effective April 21, 2024). That Notice describes the changes in 50 10 8 as “largely re-implementing requirements that were in place before January 2021, including, restoring 7(a) underwriting criteria, reinstituting the SBA Franchise Directory with streamlined procedures, re-affirming that SBA Lenders determine whether the Applicant is eligible for a loan guaranteed by SBA, and eliminating the “do what you do” philosophy from the SOP”. While providing a high-level summary of some of the major changes in the SOP, the Notice directs readers to “fully read SOP 50 10 8 to ensure an understanding of all changes”.
In addition to the revisions listed above, it is important to note that, effective June 1, 2025, the maximum size of a 7(a) Small Loan will be reduced from $500,000 to $350,000 and lenders with delegated authority will be required to process all loans under that authority, except those specifically excluded by the SOP.
The final version of the SOP is posted on the SBA website. In addition, to assist readers in identifying the policy changes, SBA has made available a track changes version of the SOP which will not be posted to the SBA website but can be accessed here: SOP 50 10 8 in track changes. Finally, SBA has provided a link to the slide deck describing most of the changes that was used in its April 22, 7(a) Connect Quarterly Update.
NAGGL will provide additional detailed information about the revised SOP during two 3-hour webinars to be held on April 29 and May 1. In addition, senior SBA policy officials will join the NAGGL team at the upcoming NAGGL Spring Conference in Salt Lake City, May 13-15, 2025, for more in-depth discussions of the changes in the new SOP.
