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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.

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?

Let’s start here: SBA lending is not “small commercial lending with extra paperwork.” Instead, it’s strategic risk management guided by the SBA SOP. Why? To start with, the government guaranty fundamentally changes risk exposure. And then there’s the community aspect: SBA loans allow banks to safely serve small-business Borrowers that might not qualify for a standard commercial loan. This helps stabilize not only the local business community, but also the bank’s overall credi

Part I of our series on how to handle the SBA portfolio during a merger – discussed what you need to do before the merger: assessing the...

Mergers are seldom easy, no matter what industry you’re in. Bank mergers, with all the associated regulations and financial...

SBA Consultant We all have that thing – you know, the thing that keeps our attention, that energizes and challenges us. When I was a...