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Lenders, you’re familiar with the credit memo. You’ve filled it out a thousand times or more. And you’ve undoubtedly reviewed the new SBA SOP 50 10 8.1 and the latest SBA SOP changes more than a few times by now. But here’s the catch: your long-time familiarity with the credit memo might be causing you to overlook some of the updates you need to make. In other words, it’s still called a Credit Memo, but it’s got a host of new SBA Lender requirements. Let’s take a look.

We’ve all been aware that October 1st was the official effective date of SBA SOP 50 10 8.1. You’ve undoubtedly been revising your processes and checklists and training (oh my!). But did you catch the updates SBA released on September 25th, less than a week before that October 1st effective date? SBA issued Technical Policy Updates that include several important changes and clarifications that you will need to include in your procedures, underwriting tools, and your checklists

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

In SBA 7(a) Lending, you obviously have to focus on the factors that make a loan eligible. Business acquisition, partner buyout, equipment purchase, working capital – these criteria matter for compliance and eligibility. But those criteria, while important, aren’t the only factors that determine whether a deal succeeds. As SBA Lender service providers and consultants, we recognize that all loans are unique unto themselves.

There were a lot of U.S. bank mergers & acquisitions (M&As) in 2025 – over 170, according to American Banker, which is a significant increase from prior years – and there are still more pending as we go into the new year.

Effective March 1st, 2026, SBA will no longer allow the use of FICO®’s Small Business Scoring Service to screen 7(a) small loans (loans up to $350,000). Instead – as has been an observable trend for over a year now – SBA is re-emphasizing that Lenders must return to traditional commercial credit analysis in alignment with how their non-SBA commercial loans are evaluated and underwritten, as outlined in the SBA SOP 50 10 8.

Lenders have always been responsible for verifying owners’ citizenship and residency according to SBA SOP 50 10 8. But beginning January 1st of 2026, and then again as of March 1st, standards have changed and are being enforced with greater precision. In short, ownership eligibility now more than ever is a key consideration for SBA compliance.

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.