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In our first look at the Change of Ownership changes in SBA SOP 50 10 8.1, we focused on financial statements, DSC, Quality of Earnings, and equity. But even when the cash flow works, the deal still has to be structured correctly. And Appendix 15 includes several changes that affect loan terms, debt structure, collateral, seller involvement and even delivery method. These are the details that can turn into big issues if they are discovered too late.

Just when your team was getting comfortable with SBA SOP 50 10 8, another SBA SOP update is on the way. SBA SOP 50 10 8.1 becomes effective October 1, 2026, and Change of Ownership transactions are getting significant attention. In fact, SBA has created an entire appendix—Appendix 15—specifically for 7(a) Changes of Ownership. So, what do lenders really need to know? First, Know What Type of Deal You Have SBA SOP 50 10 8.1 divides Change of Ownership transactions into four ca

Which should you search as part of your SBA underwriting process? CAIVRS or SAM.gov? Both, because they serve different purposes. It’s one of the most common questions we hear as part of our SBA consulting services. And with SBA SOP 50 10 8.1 taking effect October, 1, 2026, now is a good time for lenders to make sure their procedures reflect the new requirements. Today’s loans can involve multiple owners, holding companies, Eligible Passive Companies (EPCs), Operating Compan

Here a checklist, there a checklist, everywhere a checklist! Department-specific checklists are essential. They focus on the specific responsibilities of that specific department or team. So an underwriting checklist focuses on eligibility, repayment ability, and collateral. Closing verifies documentation and funding conditions. Servicing monitors insurance, payments, reviews, and modifications. And so on.

Lori’s current SBA-geek fun: facilitating a monthly SBA Form 1502 Roundtable, with over 50 participants from 25 different Lenders. From our experience working with clients and from what we hear from Lenders at the Roundtable, there are four primary early-warning signs of SBA Form 1502 reporting trouble. All of them relate to mismatches between Lender and FTA records.

AI can be a useful tool for SBA Lenders, helping reduce the time spent organizing information and drafting credit memos. It can summarize documents, identify trends, and create first (emphasis on first, please) drafts in minutes. But the rule everyone should remember is: TRUST BUT VERIFY. (We’ve all seen news reports of various professionals relying on AI and not verifying, only to be caught out with fictional references and other career-ending problems!)

Artificial intelligence is increasingly shaping how small businesses operate. From automating routine tasks to improving decision-making, AI is changing how companies work, compete, and generate revenue. As an SBA Lender, have you considered how technology may affect Borrower performance – and how that might shift your long-term SBA portfolio strategy?

Principal compromise is a viable option when an SBA 7(a) loan runs into trouble, and the only other option is SBA loan liquidation. It’s helpful for the business owner, because it allows them to keep on keeping on. But there are some significant risks and potential “gotchas” for the Lender, especially when navigating SBA SOP 50 57 guidance. Let’s take a look.

Managing SBA Chapter 11 Bankruptcies The hard economic reality right now is that small business bankruptcies are on the rise. So let’s look at what you can do to prepare your SBA Lending team to protect the guaranty, control costs, and maintain SBA compliance while meeting evolving SBA lender requirements. As Benjamin Franklin said so long ago, an ounce of prevention is worth a pound of cure.

The SBA Form 1502 report may be everyone’s least-favorite aspect of SBA 7(a) lending. It’s a source of anxiety for both the SBA 1502 expert on your team as well as your senior management. Your 1502 worker-bees know it’s the mechanics of the SBA Form 1502 report where the problems start – missing reconciliations, inconsistent timelines, unsupported recoveries, and so on. Researching these issues is time-consuming, frustrating, and anxiety-producing. We’ve heard people calling