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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

Your SBA lending program is only as strong as your team – and in today’s highly-regulated and definitely fast-changing environment, success depends on your team’s collective understanding of the entire SBA loan lifecycle. And that’s where SBA Lender training – including cross-functional training – become more essential than ever.

There are two primary ways Lenders run into trouble with loan originations. The first – Screen-Outs – applies only during General Processing (GP) submissions. The second – Compliance Code Holds – occurs within the automated SBA compliance engine, applying to both GP and Preferred Lender Program (PLP) submissions.

As an SBA lender, the SBA guaranty offers essential protection supporting your institution’s willingness to extend credit to small businesses. But that protection comes with responsibilities, not the least of which is the duty to act in a timely manner throughout the life of the loan – and especially when the loan is in distress.