SBA SOP 50 10 8.1, including the Technical Policy Updates SBA issued on Friday, September 25, 2026, replaces SOP 50 10 8 for both the 7(a) and 504 programs and took effect October 1, 2026. The biggest changes affect business acquisitions and change-of-ownership lending.
The Rule Follows the Loan Number
SOP 50 10 8.1 applies to loans that receive an SBA loan number on or after October 1, 2026. The application date does not control.
Watch files in the pipeline
A file submitted in late September that doesn’t receive its SBA loan number until October falls under the new rules.
Key Changes for SBA Lenders
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App. 15
New Appendix 15 for Acquisitions
Change-of-ownership lending moves into its own appendix, Appendix 15, with four defined transaction types.
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1.25xDSCR
Higher Coverage, No Projections
The debt service coverage ratio (DSCR) floor rises from 1.15x to 1.25x for first-time buyers, and projections can’t be used to meet it.
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≤ Value
Debt Capped at Business Value
Total transaction debt, including seller notes that are not on full standby, is capped at the supported valuation.
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$3M+
Quality of Earnings at $3 Million and Above
A lender-ordered Quality of Earnings (QoE) report is required for Initial Acquisition and Business Expansion deals of $3 million or more.
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10 yrsmax
Loan Terms and Equity
The business portion is capped at a 10-year amortization, and limited equity sources can supply no more than half of the equity injection.
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No 7(a) Small
No 7(a) Small for Acquisitions
7(a) Small underwriting is no longer permitted for any change of ownership, regardless of loan size.
What Stays the Same
- Franchise Directory rules
- The $5 million individual 7(a) maximum
- 504 special-purpose equity
Questions about SOP 50 10 8.1 and your acquisition pipeline?
Our SBA Lender Service Provider (LSP) team works alongside banks and credit unions on 7(a) and 504 lending, from eligibility and underwriting through closing and servicing.
This summary is for general information and is not legal or compliance advice. Refer to SBA SOP 50 10 8.1 and the related Technical Policy Updates for complete requirements.