SBA issued Procedural Notice 5000-872764, Revisions to SOP 50 10 8 – 504 and 7a Loan Program Updates (effective September 30, 2025) which amends SOP 50 10 8 to provide updated guidance for both the 7(a) and 504 programs.  Except for the noted changes, program requirements remain as previously published in SOP 50 10 8.

The notice includes the following changes for the 7(a) Loan Program:

  • Removal of “in the same geographic area” as one of the eligibility criteria used to distinguish between a business expansion and a new business or change of ownership for purposes of determining whether an equity injection is required.  The eligibility criteria for a business expansion continues to require that both businesses be co-borrowers and that the ownership of both businesses is identical.  Note:  no equity injection is required if the transaction is deemed to be a business expansion under the amended requirements.  [Complimentary change to 504 Program.]
  • Adoption of change regarding the calculation of the upfront fee for multiple loans made within 90 days as previously included in SBA Information Notice 5000-872051.
  • Revision to collateral and lien recordation policies to allow a lender to sell a loan on the secondary market after it has appropriately filed the required liens, subject to the condition that the lender will be subject to a full or partial denial of liability on the loan if it ultimately fails to obtain the properly perfected and recorded lien(s).
  • Clarification that, for loans to Employee Stock Option Plan (ESOPs), an independent business valuation is not required and that the lender may use the valuation obtained by the ESOP that was made in accordance with ERISA specifications.
  • Update to Appendix 13, 7(a) MANUFACTURERS’ ACCESS TO REVOLVING CREDIT (MARC), to clarify that a MARC loan may not be processed under the lender’s delegated authority if it refinances the lender’s same institution debt (SID). 

Please see the Procedural Notice for additional details and for information regarding the changes that apply only to the 504 program.