SBA SOP 50 10 8.1, B.Ch2.A.2 — Changes of Ownership: See Appendix 15: 7(a) Changes of Ownership

SOP 50 10 8.1 B.Ch2.A.2

Effective 2026-10-01 · publisher's stamp for this provision

2. Changes of Ownership: See Appendix 15: 7(a) Changes of Ownership The full change of ownership use of proceeds requirements, including the applicable transaction types, eligibility criteria, valuation standards, equity injection requirements, debt service coverage requirements, collateral requirements, and documentation standards, are set forth in Appendix 15. This summary is included in this Chapter for ease of use and highlights the requirements that differ for 7(a) Small and SBA Express. For changes of ownership financed utilizing 7(a) Small and SBA Express the following Appendix 15 modifications apply: a. An internal business valuation may be obtained at the Lender’s discretion when the Business Purchase Price is $350,000 or less. This differs from the general Appendix 15 valuation requirements that require an independent valuation based on the transaction size and structure. b. The loan must comply with all Appendix 15 debt service coverage (DSC) requirements, including the applicable minimum DSC standard and required cash flow analysis. No reduced or alternative DSC standard applies solely because the loan is a 7(a) Small or SBA Express loan. c. The loan must meet Appendix 15’s fully secured definition. However, unlike the general fully secured analysis, the lender is not required to include other held commercial real estate of the borrower or guarantors when determining if the loan is fully secured. d. All other applicable Appendix 15 change of ownership requirements continue to apply unless Appendix 15 expressly provides otherwise.

Source: SBA SOP 50 10 8.1, B.Ch2.A.2 — Changes of Ownership: See Appendix 15: 7(a) Changes of Ownership · source URL · snapshot 0fb0c4692cf52938