What’s New in SBA Change of Ownership Rules? Here’s the Scoop on SOP 50 10 8

We all know the rules around ownership changes can get a little tricky, especially when navigating SBA guidelines for lenders. But here’s the good news: the SBA made some helpful updates in SOP 50 10 8.

Whether you're financing a full buyout or just shifting ownership between partners, these changes are worth knowing. Let’s break down what’s new.

Equity Injection – Still 10%, but clearer guidance

The 10% rule still applies, but the SBA has provided more guidance on how you get there:

• Gifted equity (like a family member handing off ownership) is more clearly allowed with sufficient supporting documentation

  
  

• Seller notes can count toward that 10%—as long as they’re on full standby for the life of the SBA loan and Standby Creditor subordinates any lien rights to collateral pledged

  
  

• Documentation standards are clearer for funds injected by Applicant, Principals or gifted

  
  

  • Copy of wire or check showing funds gifted

    
    

  • Copy of statement from accounts were from (30 days prior to funding)

    
    

  • Copy of statement from accounts were from showing funds injected or HUD-1 showing the use of the funds

Partial Ownership Changes see some changes

Buying out a partner or another shareholder? What you need to know.

• The Operating company and new direct and/or indirect owner acquiring any ownership interest must be Co-Borrowers, regardless of the percentage of ownership being acquired

  
  

• Selling owners, who remain (indirect/direct) and own less than 20% of the business after the sale MUST guarantee the loan for full loan amount.

  
  

  • Guaranty must be for 2 years after final disbursement; or until the loan has been current for 12 consecutive months.  Form 148L has been updated to include this Guaranty option.

    
    

  • These guarantors are not required to provide additional collateral in cases of collateral shortfall.

    
    

Final Take

SOP 50 10 8 (and Technical update) show that the SBA is working to make 7(a) loans more accessible, especially when it comes to ownership transitions. These updates mean fewer headaches, faster closings, and more opportunities for both buyers and sellers.

That said, you still need to dot your i’s and cross your t’s. Staying compliant with SBA guidelines for lenders is critical, and that’s where the right expertise makes a difference. Proper documentation, deal structure, and eligibility checks are still non-negotiable.

Need a Hand with SBA Ownership Deals?

As a trusted lender service provider, we specialize in helping institutions navigate these changes. Our team offers end-to-end lender SBA consulting services, lender SBA training, and deal support to ensure smooth, compliant change-of-ownership transactions.

Whether you're new to SBA lending or a seasoned SBA lender, we’ve got your back—every step of the way.