SBA SOP 50 10 8 — what is actually in force

The operative SBA 7(a) and 504 rule is not one document. It is SOP 50 10 8 (2025-06-01) plus 5 notices that amend it — and the SOP itself is already superseded on at least one live requirement.

SBA's own SOP page does not serve the current edition. It lists twelve superseded versions, 5(D) 2011 through 5(K) 2019. An assistant reading the official page can quote a 2019 rule with full confidence.

Published, but NOT yet in force

5000-880695 — Issuance of SOP 50 10 8.1
takes effect 2026-10-01 · 27 days away

Text that is published and not yet operative reads exactly like current text. Quoting it today is the same category of error as quoting a superseded rule.

Notices amending SOP 50 10 8

Notice	Subject	Effective	Expires	Status
5000-880695	Issuance of SOP 50 10 8.1	2026-10-01	2027-10-01	not yet in force
5000-876441	Update to citizenship and residency requirements rescinds 5000-872050	2026-03-01	2027-03-01	in force
5000-870260	7(a) Manufacturers Access to Revolving Credit (MARC) loans	2025-10-01	2026-09-01	expired
5000-872764	Revisions to SOP 50 10 8	2025-10-01	2026-09-01	expired
5000-868665	Issuance of SOP 50 10 8 — technical updates	2025-06-01	2026-05-01	expired

Where the SOP is already wrong

SOP 50 10 8 permits owners who are U.S. citizens, U.S. Nationals OR Lawful Permanent Residents, and devotes Section A, Chapter 1.F to verifying LPR status — I-551 cards, I-327 re-entry permits, I-797 notices. Policy Notice 5000-876441 removes LPRs from that list entirely, requiring 100% U.S. Citizens or U.S. Nationals with a U.S. principal residence, and rescinds the 5% foreign-ownership exception. Reading the SOP alone gives you an eligibility test that is broader than the one SBA now applies.

SBA is requiring that 100% of all direct and/or indirect owners of a small business applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions. Effective March 1, 2026, this Notice rescinds SBA Procedural Notice 5000-872050, removing the narrow exception that allowed a Borrower to have up to 5% ownership held by foreign nationals.

Source: SBA Policy Notice 5000-876441 · effective 2026-03-01. This language does not appear in the 467-page SOP.

SOP provisions (616)

616 contiguous provisions cut on the document's own heading hierarchy and each verified verbatim against the source PDF, including all 29 appendix sections.

Ch5 E-Tran Terms and Conditions through Disbursement for all 7(a) Loans 3,580 ch
A.Ch1 PRIMARY APPLICANT ELIGIBILITY REQUIREMENTS 2,353 ch
A.Ch1.B ORGANIZED FOR PROFIT 1,473 ch
A.Ch1.C LOCATED IN THE UNITED STATES 981 ch
A.Ch1.D SMALL UNDER SBA SIZE REQUIREMENTS 270 ch
A.Ch1.D.1 Size Standards 1,226 ch
A.Ch1.D.2 When Applicant size is determined 1,069 ch
A.Ch1.D.3 Formal size determinations 1,295 ch
A.Ch1.D.4 Affiliation 3,103 ch
A.Ch1.D.4.vi Ownership interests of spouses and minor children must be combined when 1,085 ch
A.Ch1.D.4.vi.ii Agreements to open or continue negotiations towards the possibility of a 205 ch
A.Ch1.D.4.vi.iii Options, convertible securities, and agreements that are subject to conditions 934 ch
A.Ch1.E TYPES OF INELIGIBLE BUSINESSES 831 ch
A.Ch1.E.vi Bail Bond Companies; and 3,753 ch
A.Ch1.E.vi.ii.iv Have oversight over the employees operating the business (who must be 788 ch
A.Ch1.E.vi.i Hotels, motels, recreational vehicle parks, marinas, campgrounds, or similar 1,322 ch
A.Ch1.E.vi.i.iii Businesses that are engaged in leasing equipment, household goods or other 691 ch
A.Ch1.E.4 Life insurance carriers are not eligible. 13 CFR § 120.110(d) 1,011 ch
A.Ch1.E.4.i.ii Gambling activities licensed and supervised by a state authority in those 3,021 ch
A.Ch1.E.4.i.ii What types of products are being produced and/or sold (e.g., topical products 560 ch
A.Ch1.E.4.i.iv Whether all products being produced and/or sold comply with all applicable 1,102 ch
A.Ch1.E.4.i.ii Evidence that the facility is open to both men and women, such as 3,700 ch
A.Ch1.E.4.i.ii It derives more than 5% of its gross revenue, directly or indirectly, through 191 ch
A.Ch1.E.15 Prior Loss to the Government 13 CFR § 120.110 (q) 2,279 ch
A.Ch1.E.15.i.ii SBA Lenders may access CAIVRS at 804 ch
A.Ch1.E.16 Delinquent Federal Debt 3,419 ch
A.Ch1.E.18 Speculation 13 CFR § 120.110 (s) 520 ch
A.Ch1.E.18.v Building homes for future sale (except under the 7(a) Builders CAPLines 1,357 ch
A.Ch1.F BUSINESSES OWNED BY NON-U.S. CITIZENS 5,240 ch
A.Ch1.F.i.ii.iii Because it can take up to a year for a newly arrived immigrant to receive a 1,170 ch
A.Ch1.F.i.i Temporary I-551 stamps. A temporary stamp, issued by USCIS to replace lost 250 ch
A.Ch1.F.i.i.ii USCIS Form I-327, “Re-entry Permit,” issued to LPRs in lieu of a visa, which 188 ch
A.Ch1.F.i.i.iii USCIS Form I-797, Notice of Action. Aliens with Conditional LPR status 2,905 ch
A.Ch1.F.i.i.i “I authorize the U.S. Citizenship and Immigration Services to release 420 ch
A.Ch1.F.i.i.iv As required by USCIS, all verification requests must include an authorization 1,254 ch
A.Ch1.G FRANCHISES 2,638 ch
A.Ch1.G.i Whether SBA determined that the brand meets the FTC definition of a 225 ch
A.Ch1.G.i.iii Whether there are additional issues the SBA Lender must consider with 4,689 ch
A.Ch1.G.i.iii.iii Upon completion of SBA’s review and a determination by SBA that the 5,789 ch
A.Ch1.G.i.iii.i Non-delegated loans: The SBA Lender must provide these documents 2,804 ch
A.Ch1.G.i.iii.ii Management agreements that give the management company sole discretion 340 ch
A.Ch1.G.i.iii.iii “Meaningful oversight” by the Applicant means involvement in the decisions 1,022 ch
A.Ch1.G.i.i.ii Franchisors that would like to appeal SBA’s decision not to place them on 461 ch
A.Ch1.G.i.i.iv Franchisors that would like to request reconsideration of SBA’s 380 ch
A.Ch1.H CREDIT NOT AVAILABLE ELSEWHERE 1,677 ch
A.Ch1.H.ii Conventional lenders or other non-Federal, non-State, or non-local 3,262 ch
A.Ch1.I CUSTOMER IDENTIFICATION PROGRAMS 1,309 ch
A.Ch2.A ELIGIBLE PASSIVE COMPANIES 7,809 ch
A.Ch2.A.i Each holder of an ownership interest constituting at least 20% of either the 265 ch
A.Ch2.A.i.ii Each spouse owning less than 20% of an EPC or OC must personally 2,586 ch
A.Ch2.A.3 Size Determinations under the EPC rule. 1,228 ch
A.Ch2.B LOANS TO EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) 3,429 ch
A.Ch2.C COOPERATIVES 1,691 ch
A.Ch2.D 401(K) PLANS INCLUDING ROLLOVERS AS BUSINESS START-UPS (ROBS) 4,263 ch
A.Ch3.A ELIGIBLE USES OF PROCEEDS 990 ch
A.Ch3.A.i Include an independent real estate appraisal that meets the SBA Loan Program 242 ch
A.Ch3.A.i.ii Include an explanation of the circumstances surrounding the 7(a) Lender or 1,225 ch
A.Ch3.A.i.i Working capital may be used to acquire and/or use business software or 597 ch
A.Ch3.A.i.i.iii Working capital proceeds may not be used to refinance existing debt or to 374 ch
A.Ch3.A.3 Farm Enterprises 434 ch
A.Ch3.A.3.iii Operating expenses directly related to the farming operation, excluding 1,117 ch
A.Ch3.B RESTRICTIONS ON USES OF PROCEEDS 544 ch
A.Ch3.B.2 Refinancing a debt owed to a Small Business Investment Company (SBIC) or a New 496 ch
A.Ch3.B.6 Payment of Delinquent Taxes; or 2,584 ch
A.Ch3.C.1 Occupancy 5,426 ch
A.Ch3.C.2 Responsibilities When the Borrower is Leasing Space 1,374 ch
A.Ch3.C.2.ii No modification or cancellation of lease without SBA Lender's or assignee's 1,596 ch
A.Ch4 ETHICS, FEES, AND AGENTS 239 ch
A.Ch4.A ETHICAL REQUIREMENTS 807 ch
A.Ch4.A.2 Standards of Conduct Reviews for Applicants 3,452 ch
A.Ch4.B DEBARMENT, SUSPENSION, AND EXCLUSION (SAM.GOV) 2,430 ch
A.Ch4.C.1 Fees the Lender Pays SBA 1,448 ch
A.Ch4.C.1.i Calculation of the Upfront Fee. 5,476 ch
A.Ch4.C.1.i.iv Additional Upfront Fee for Loan Increases. 1,670 ch
A.Ch4.C.1.i.vi Method of Upfront Fee Payment. 4,298 ch
A.Ch4.C.2 Fees and Expenses the Lender May Collect from the Applicant or Borrower 1,318 ch
A.Ch4.C.2.iii As part of its packaging fee, Lenders may charge fees associated with 5,595 ch
A.Ch4.C.2.iii.ii Fees charged for legal services must be for services performed by an attorney 804 ch
A.Ch4.C.2.iii.iii Direct costs associated with out-of-pocket expenses described in this section 1,577 ch
A.Ch4.C.3 Fees the Borrower Pays to SBA 1,053 ch
A.Ch4.C.4 Prohibited Fees 752 ch
A.Ch4.D 7(A) LOAN PROGRAM AND USE OF AGENTS 292 ch
A.Ch4.D.1 Use of Agents in the 7(a) Loan Program 401 ch
A.Ch4.D.1.ii Prudent oversight should include having written policies governing such 318 ch
A.Ch4.D.1.ii.iv Federally-regulated 7(a) Lenders are reminded that they must comply with 3,008 ch
A.Ch4.D.2 Agents 1,464 ch
A.Ch4.D.3 Referral Agents 428 ch
A.Ch4.D.4 Packager 512 ch
A.Ch4.D.5 Lender Service Provider 1,481 ch
A.Ch4.D.6 Lender Service Provider Agreements 1,843 ch
A.Ch4.D.6.ii Entities providing technology services to a 7(a) Lender that include 2,169 ch
A.Ch4.D.6.ii.iii 7(a) Lender’s responsibility: There must be a statement that the 7(a) Lender 723 ch
A.Ch4.D.6.v Compensation: The compensation must be specifically explained as to what 720 ch
A.Ch4.D.6.v.vi Term: The full term of the contract including renewal options must be stated 1,760 ch
A.Ch4.D.7.i Packaging services to assist the Applicant with completing one or more 189 ch
A.Ch4.D.7.i.ii Other services that include consulting as to the amount and type of financing 2,051 ch
A.Ch4.D.7.i 7(a) Lenders must review all services and related fees charged to either the 764 ch
A.Ch4.D.8 Disclosure of Fees – SBA Form 159 1,709 ch
A.Ch4.D.8.i Information on this form will be used to monitor fees charged by Agents and 3,399 ch
A.Ch4.E.1 Borrower’s Deposit 1,103 ch
A.Ch4.E.2 Allowable Fees 222 ch
A.Ch4.E.2.1 Processing fee (Packaging fee) 339 ch
A.Ch4.E.2.1.2 Closing Fee 224 ch
A.Ch4.E.2.1.2.3 Servicing fee (monthly) 401 ch
A.Ch4.E.2.1.2.5 Assumption fee 418 ch
A.Ch4.E.2.1.2.1 SBA Guaranty Fee – (up-front 262 ch
A.Ch4.E.2.1.2.2 Annual Fee – (Ongoing fee) 253 ch
A.Ch4.E.2.1.2.3 Participation Fee – Senior 377 ch
A.Ch4.E.2.1.2.5 Debt Refinancing Without 310 ch
A.Ch4.E.3 Fees for Other Services 731 ch
A.Ch4.E.3.i Based upon a contractual agreement between the Third Party Lender paying 563 ch
A.Ch4.E.3.i.ii Acquisition costs or fees for licensing software or software platforms to CDCs 231 ch
A.Ch4.E.3.i.iii Fees associated with entities that develop systems or lending platforms to 737 ch
A.Ch4.E.4 Use of Agents in the 504 Loan Program 3,485 ch
A.Ch4.E.5 Fees an Agent May Charge an Applicant for Packaging and Other Services 269 ch
A.Ch4.E.5.i Packaging services to assist the Applicant with completing one or more 189 ch
A.Ch4.E.5.i.ii Other services that include consulting as to the amount and type of financing 915 ch
A.Ch4.E.5.i.ii 2 percent for loans between $50,000 and the first $1,000,000 and 533 ch
A.Ch4.E.5.i.ii Contingency fees (fees paid only if the loan is approved or closed); or 299 ch
A.Ch4.E.5.i CDCs must review the Agent’s services and related fees to determine if the 680 ch
A.Ch4.E.6 Professional Services Contractors 1,296 ch
A.Ch4.E.6.i Must be located in the same SBA Region (except for contracts for liquidation 414 ch
A.Ch4.E.6.i.iv Must not provide assistance to another CDC in its State of Incorporation or 394 ch
A.Ch4.E.6.i.viii Notwithstanding the prohibition in 13 CFR § 120.820(d) against a CDC 899 ch
A.Ch4.E.6.i.ii With respect to contracts for management or independent loan reviews 1,002 ch
A.Ch4.E.6.i At least 60 days prior to the date on which the CDC intends to engage the 3,716 ch
A.Ch4.E.6.i.iv Must be accompanied by a Board of Directors’ Resolution containing the 399 ch
A.Ch4.E.7 Disclosure of Fees – SBA Form 159 1,608 ch
A.Ch4.E.7.i Information on this form will be used to monitor fees charged by Agents and 615 ch
A.Ch4.E.7.i.i Separate SBA Forms 159 must be completed for each application and 1,589 ch
A.Ch4.E.7.i.iv CDCs must upload a copy of the completed SBA Form 159, signed by all 685 ch
A.Ch5.A GUARANTIES 4,869 ch
A.Ch5.B IRS TAX TRANSCRIPT/VERIFICATION OF FINANCIAL INFORMATION 1,316 ch
A.Ch5.B.i NAICS Size Standard: For the Applicant, or the Operating Company if the 310 ch
A.Ch5.B.i.ii Alternative Size Standard: For the Applicant, or the Operating Company if 3,842 ch
A.Ch5.C INSURANCE REQUIREMENTS 183 ch
A.Ch5.C.1 Hazard Insurance 600 ch
A.Ch5.C.1.iii Insurance coverage must contain a MORTGAGEE CLAUSE (or substantial 692 ch
A.Ch5.C.1.iii.iii Insurance coverage must contain a LENDER'S LOSS PAYABLE CLAUSE 766 ch
A.Ch5.C.2 Marine Insurance 409 ch
A.Ch5.C.2.i Act, omission, or negligence of the mortgagor, owner, master, agent, or crew 496 ch
A.Ch5.C.3 Flood Insurance 863 ch
A.Ch5.C.3.i Provide coverage that is at least as broad as the coverage provided under the 460 ch
A.Ch5.C.3.i.iv Contain a mortgage interest clause similar to the one in the standard NFIP 244 ch
A.Ch5.C.3.i.vi Contain cancellation provisions that are as restrictive as the provisions 1,810 ch
A.Ch5.C.4 Life Insurance 1,994 ch
A.Ch5.C.4.iii CDC may accept the pledge of an existing life insurance policy. Credit life 1,184 ch
A.Ch5.D HISTORIC PROPERTIES 2,253 ch
A.Ch5.D.i Prior to submitting the SBA Loan application to the SBA loan processing 3,489 ch
A.Ch5.D.i.ii Local SBA counsel will review the request and may request additional 1,533 ch
A.Ch5.D.i.ii.i Among other things, the Section 106 review will involve evaluation 2,433 ch
A.Ch5.E ENVIRONMENTAL POLICIES AND PROCEDURES 470 ch
A.Ch5.E.1 Environmental Contamination Risks 840 ch
A.Ch5.E.2 Environmental Investigations 516 ch
A.Ch5.E.3 Submission of Environmental Investigation Reports 2,858 ch
A.Ch5.E.4 Environmental Investigation Steps 5,519 ch
A.Ch5.E.5 Property Contamination or Remediation 881 ch
A.Ch5.E.5.v Governmental Entity’s designation of responsible Person(s) (as defined in 13 267 ch
A.Ch5.E.5.v.iii Institutional Controls and Engineering Controls, if any, and their impact on 307 ch
A.Ch5.E.5.i Indemnification. If any Person (as defined in Appendix 4) who possesses 1,399 ch
A.Ch5.E.5.i.ii Completed Remediation. If the Governmental Entity has affirmed in writing 687 ch
A.Ch5.E.5.i.iii No Further Action. If an SBA Lender obtains a “no further action letter” or 528 ch
A.Ch5.E.5.i.iv Minimal Contamination with Minimal Remediation. If the extent of 607 ch
A.Ch5.E.5.v Clean-up Funds. If the SBA Lender provides evidence from a Governmental 451 ch
A.Ch5.E.5.v.vi Escrow Account. If an escrow account is available that equals a minimum of 1,224 ch
A.Ch5.E.5.v.vii Contamination Originating from another Site. If Contamination on the 783 ch
A.Ch5.E.5.v.viii Additional or Substitute Collateral. If additional or substitute collateral is 264 ch
A.Ch5.E.5.v.ix Other Factor(s). The SBA Lender and SBA may rely on factors other than or 1,448 ch
A.Ch5.E.6 Special Use Facilities 2,639 ch
A.Ch5.E.7 Release of Rights to Indemnification from SBA/Lender 1,040 ch
A.Ch5.E.8 Brownfields Sites 292 ch
A.Ch5.E.9 Questions on SBA’s Environmental Policy and Appeals 2,081 ch
B.Ch1 STANDARD 7(A) LOANS (LOANS GREATER THAN $350,000) 567 ch
B.Ch1.A.1 Debt Refinancing 902 ch
B.Ch1.A.1.ii.iii Credit Card Debt Used for Business Expenses - The Applicant must certify 622 ch
B.Ch1.A.1.ii.iv Debt that is over-collateralized based on Standard 7(a) collateral 434 ch
B.Ch1.A.1.ii.vi Debt with a maturity that was not appropriate for the purpose of the financing 1,116 ch
B.Ch1.A.1.ii.viii Debt reflected on the Applicant’s business balance sheet is eligible for 2,367 ch
B.Ch1.A.1.ii.iv Refinancing a same institution 7(a) loan. A Lender may refinance its own 3,172 ch
B.Ch1.A.1.ii.ii Supporting documentation for each debt to be refinanced: Lenders are 1,900 ch
B.Ch1.A.2 Change of Ownership 2,044 ch
B.Ch1.A.2.i One or more of the current owners is selling less than their entire percentage 3,738 ch
B.Ch1.A.2.i One or more current owners is purchasing the entire interest of another 1,601 ch
B.Ch1.A.2.i.ii Multi-step partial changes of ownership are not eligible. A multi-step partial 424 ch
B.Ch1.A.2.i.iii 7(a) loans may not fund a partial change of ownership in an EPC for a 2,523 ch
B.Ch1.A.2.i.vi With the exception of vehicles as described in Para. C.3.d. below, evidence 834 ch
B.Ch1.B.1 Maximum Loan Amount 375 ch
B.Ch1.B.2 Maximum Guaranty Amounts and Percentages 663 ch
B.Ch1.B.2.i.ii 75% for loans over $150,000 1,533 ch
B.Ch1.B.3 Loan Maturities 2,272 ch
B.Ch1.B.3.i.ii Where machinery and equipment comprise 51% or more of the proceeds, the 264 ch
B.Ch1.B.4 Interest Rates 2,308 ch
B.Ch1.B.4.iv Default interest rates are not permitted. 1,106 ch
B.Ch1.B.4.iv.vi After approval and prior to final disbursement, Lender must either notify the 11,365 ch
B.Ch1.C CREDIT STANDARDS 834 ch
B.Ch1.C.1 Processing Methods 3,183 ch
B.Ch1.C.1.i Historical cash flow for existing businesses, that demonstrates total 1,151 ch
B.Ch1.C.1.i.iii Debt Service (DS) is defined as the future required principal and interest 959 ch
B.Ch1.C.1.v Spread of pro-forma Business Balance Sheet (current business balance sheet 226 ch
B.Ch1.C.1.v.vi Ratio calculations (based on the pro-forma Balance Sheet and historical and 521 ch
B.Ch1.C.1.v.viii Assessment of collateral adequacy adjusted in accordance with Paragraph 2,764 ch
B.Ch1.C.1.v.ii Minimum equity injection requirements for Start-Up Businesses: SBA 3,957 ch
B.Ch1.C.1.v.iv Source of Equity Injection: The following may be considered equity 1,599 ch
B.Ch1.C.3 Collateral 10,343 ch
B.Ch1.C.3.i Independent and have no appearance of a conflict of interest (such as a 3,904 ch
B.Ch1.C.3.i.i Is 90% or more of the estimated value, the Lender may close the loan 7,959 ch
B.Ch1.D SUBMISSION OF APPLICATION FOR GUARANTY 3,542 ch
B.Ch1.D.1 Contents of Lender’s Application for Guaranty & Submission to SBA 3,132 ch
B.Ch1.D.1.iii Interim Balance Sheet, including a detailed debt schedule, and interim Profit 558 ch
B.Ch1.D.1.i Appraisal (See appraisal requirements in Paragraph C.3.d, Real Estate 729 ch
B.Ch1.D.1.i.iv Copy of seller’s financial statements for the last 3 complete fiscal years or 271 ch
B.Ch1.D.1.v Seller’s interim financial statements no older than 120 days from date of 1,724 ch
B.Ch1.D.2 Where to Submit Applications for Guaranty 1,876 ch
B.Ch2 7(A) SMALL & SBA EXPRESS 1,019 ch
B.Ch2.A ELIGIBLE USES OF PROCEEDS 403 ch
B.Ch2.A.1 Debt Refinancing 902 ch
B.Ch2.A.1.ii.iii Credit Card Debt Used for Business Expenses - The Applicant must certify 622 ch
B.Ch2.A.1.ii.iv Debt that is over-collateralized based on Standard 7(a) collateral 434 ch
B.Ch2.A.1.ii.vi Debt with a maturity that was not appropriate for the purpose of the financing 1,116 ch
B.Ch2.A.1.ii.viii Debt reflected on the Applicant’s business balance sheet is eligible for 2,382 ch
B.Ch2.A.1.ii.iv Refinancing a same institution 7(a) loan. A Lender may refinance its own 3,191 ch
B.Ch2.A.1.ii.ii Supporting documentation for each debt to be refinanced: Lenders are 1,900 ch
B.Ch2.A.2 Change of Ownership 2,044 ch
B.Ch2.A.2.i One or more of the current owners is selling less than their entire percentage 3,752 ch
B.Ch2.A.2.i One or more current owners is purchasing the entire interest of another 1,609 ch
B.Ch2.A.2.i.ii Multi-step partial changes of ownership are not eligible. A multi-step partial 424 ch
B.Ch2.A.2.i.iii 7(a) loans may not fund a partial change of ownership in an EPC for a 3,789 ch
B.Ch2.B LOAN TERMS AND CONDITIONS 193 ch
B.Ch2.B.1 Maximum Loan Amount 723 ch
B.Ch2.B.2 Maximum Guaranty Amounts and Percentages 1,644 ch
B.Ch2.B.3 Loan Maturities 2,197 ch
B.Ch2.B.3.i Where land and structures (including poultry houses) for farming 523 ch
B.Ch2.B.3.i.i Revolving loans of more than 12 months must be structured with a 1,967 ch
B.Ch2.B.5 Interest Rates 16,443 ch
B.Ch2.C CREDIT STANDARDS FOR 7(A) SMALL LOANS & SBA EXPRESS 1,244 ch
B.Ch2.C.1 Processing Method 646 ch
B.Ch2.C.1.i.ii PLP – When a Lender submits a loan guaranty request under the Lender’s 1,195 ch
B.Ch2.C.2 Underwriting 247 ch
B.Ch2.C.2.a Underwriting 7(a) Small Loans 5,432 ch
B.Ch2.C.2.a.i Start-Up Businesses – SBA considers a business to be a “start-up” for 2,696 ch
B.Ch2.C.2.a.i.ii above are satisfied, the remaining owner(s) must contribute 1,190 ch
B.Ch2.C.2.a.i Standby Agreements - only debt that is on full standby (no payments 1,060 ch
B.Ch2.C.2.a.v Assets other than cash – An appraisal or other valuation by an 461 ch
B.Ch2.C.2.b Underwriting SBA Express Loans 2,814 ch
B.Ch2.C.3 Collateral 792 ch
B.Ch2.C.3.iv Adequacy of Collateral. 697 ch
B.Ch2.C.3.iv.i Deed restrictions, covenants, easement provisions, reversionary 3,812 ch
B.Ch2.C.3.iv.i New machinery and equipment (excluding furniture and fixtures) may 1,447 ch
B.Ch2.C.3.iv.i Taking available equity in the personal real estate (residential and 997 ch
B.Ch2.C.3.iv.i Piggyback financing occurs when one or more lenders provide more 2,322 ch
B.Ch2.C.3.iv.i Piggyback financing occurs when one or more lenders provide more 2,223 ch
B.Ch2.C.3.iv.i Independent and have no appearance of a conflict of interest (such as a 3,912 ch
B.Ch2.C.3.iv.i Is 90% or more of the estimated value, the Lender may close the loan 7,237 ch
B.Ch2.D.1 Contents of Lender’s Application for Guaranty 5,405 ch
B.Ch2.D.1.v Seller’s interim financial statements no older than 120 days from 4,808 ch
B.Ch2.D.2 Where to Submit Applications for Guaranty 669 ch
B.Ch2.D.3 Reconsideration of Declined Non-Delegated 7(a) Small Loan Applications 918 ch
B.Ch2.D.4 Requirements for E-Tran Terms and Conditions 350 ch
B.Ch3 7(A) CAPLINES 291 ch
B.Ch3.A ELIGIBILITY AND ELIGIBLE USES OF PROCEEDS FOR ALL CAPLINES 567 ch
B.Ch3.A.1 Working Capital CAPLines 1,074 ch
B.Ch3.A.1.iii Debt Refinancing under Working Capital CAPLines 1,854 ch
B.Ch3.A.1.iii.i It is reflected on the Applicant’s business tax returns (Schedule C for 2,217 ch
B.Ch3.A.1.iii.v How the new loan will improve the financial condition of the 1,479 ch
B.Ch3.A.2.i.iii Have the financial capacity and technical expertise to complete the contract 2,384 ch
B.Ch3.A.3.i Have been in operation for at least 12 calendar months; and 459 ch
B.Ch3.A.4 Builders CAPLines 804 ch
B.Ch3.A.4.i.iii Renovations must be “prompt and significant.” Construction must begin 384 ch
B.Ch3.A.4.i.iv Demonstrate a successful performance record in bidding and completing 363 ch
B.Ch3.A.4.v Be able to demonstrate prior prompt payments to suppliers and 714 ch
B.Ch3.A.4.v.ii Proceeds paid to a subcontractor can include the subcontractor’s profit. The 1,070 ch
B.Ch3.B.1 Maximum Loan Amount 2,495 ch
B.Ch3.B.2 Maximum Guaranty Amounts and Percentages 699 ch
B.Ch3.B.2.i.ii 75% for loans over $150,000 1,533 ch
B.Ch3.B.3 Loan Maturities 1,377 ch
B.Ch3.B.4 Interest Rates 2,559 ch
B.Ch3.B.4.iv Default interest rates are not permitted. 1,106 ch
B.Ch3.B.4.iv.vi After approval and prior to final disbursement, Lender must either notify the 7,109 ch
B.Ch3.C CREDIT STANDARDS FOR ALL CAPLINES 879 ch
B.Ch3.C.1 Processing Methods 1,409 ch
B.Ch3.C.2 Underwriting 1,630 ch
B.Ch3.C.2.i Historical cash flow for existing businesses, that demonstrates total 1,034 ch
B.Ch3.C.2.i.iii Debt Service (DS) is defined as the future required principal and interest 868 ch
B.Ch3.C.2.v Spread of pro-forma Business Balance Sheet (current business balance sheet 226 ch
B.Ch3.C.2.v.vi Ratio calculations (based on the pro-forma Balance Sheet and historical and 440 ch
B.Ch3.C.2.v.vii Analysis of working capital adequacy, at a minimum over the next 12 4,531 ch
B.Ch3.C.3 Collateral 264 ch
B.Ch3.C.3.ii With respect to collateral, Lenders must use commercially reasonable and 1,074 ch
B.Ch3.C.3.ii.iv Adequacy of Collateral: A loan request is not to be declined solely on the 5,694 ch
B.Ch3.C.3.ii.i Independent and have no appearance of a conflict of interest (such as a 3,913 ch
B.Ch3.C.3.ii.i Is 90% or more of the estimated value, the Lender may close the loan 1,602 ch
B.Ch3.D SUBMISSION OF APPLICATION FOR GUARANTY FOR ALL CAPLINES 1,999 ch
B.Ch3.D.1 Contents of Lender’s Application for Guaranty 1,620 ch
B.Ch3.D.1.i Centralized 7(a) Loan Submission Instructions can be found at the 7(a) Loan 1,883 ch
B.Ch3.D.1.i.iii Owner Financial Statement (business or personal, as appropriate) dated 632 ch
B.Ch3.D.1.i.iv Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax 783 ch
B.Ch3.D.1.i.viii Provide the following if real estate is to be purchased with loan proceeds 533 ch
B.Ch3.D.1.x Management agreements, if applicable, and if the management agreement is 230 ch
B.Ch3.D.1.x.xi Documentation of U.S. National and/or LPR/USCIS status verification in 2,536 ch
B.Ch3.D.1.i Zero Balance Period Requirements: With the exception of Seasonal 457 ch
B.Ch3.D.2 Where to Submit Applications for Guaranty 1,871 ch
B.Ch3.D.3 CAPLines-Specific Loan Closing and Disbursement Requirements 2,662 ch
B.Ch3.D.3.v There is other available and worthwhile collateral pledged to secure 2,362 ch
B.Ch3.D.3.v Disbursements are made, when needed, to pay for the costs on a specific 609 ch
B.Ch3.D.3.v.vi With the assignment of contract proceeds and direct payment in place, the 1,035 ch
B.Ch3.D.3.i Prior to disbursement for each individual project, the lien must be recorded 544 ch
B.Ch3.D.3.i.ii Prior to final disbursement of construction funds, final lien waivers must be 883 ch
B.Ch3.D.3.i.i Use a combination of factors for the underwriting and credit decision 2,784 ch
B.Ch3.D.3.i.v Monitor the lines consistent with the Lender’s policies and procedures 13,286 ch
B.Ch4 7(A) EXPORT TRADE FINANCE 1,046 ch
B.Ch4.A EXPORT EXPRESS 450 ch
B.Ch4.A.1 Eligibility and Eligible Uses of Proceeds for Export Express 1,444 ch
B.Ch4.A.1.iii.iv Obtaining a general line of credit for Export Transaction purposes (as a 558 ch
B.Ch4.A.1.iii.viii Acquiring, constructing, renovating, modernizing, improving, or expanding a 479 ch
B.Ch4.A.1.x.xi Financing indirect exports. The term “indirect export” applies to situations 5,235 ch
B.Ch4.A.1.x.iv Seller earnouts/buyer rebates: Seller earnouts are prohibited; however, buyer 3,721 ch
B.Ch4.A.1.i.ii Refinance existing SBA-guaranteed loans except as permitted under 2,295 ch
B.Ch4.A.2 Other Restrictions that apply to Export Express Loans 488 ch
B.Ch4.A.2.a.ii Maximum Loans to Businesses with Affiliates 306 ch
B.Ch4.A.2.b Maximum Guaranty Amounts and Percentages 491 ch
B.Ch4.A.2.i Multiple Export Express loans are allowed up to the program maximum loan 857 ch
B.Ch4.A.2.i.iv Combination of 7(a) and 504 loans 811 ch
B.Ch4.A.2.i Export Express loans must have a stated maturity. The loan term must be the 214 ch
B.Ch4.A.2.i.i Transactional lines of credit: No disbursement can be made for an 3,925 ch
B.Ch4.A.2.d Interest Rates 4,696 ch
B.Ch4.A.2.d.ii Policy on Variable Interest Rates 1,488 ch
B.Ch4.A.2.d.i Export Express Lenders are permitted to use the same change intervals 7,341 ch
B.Ch4.A.4 Credit Standards for Export Express 1,215 ch
B.Ch4.A.4.a Processing Method 1,078 ch
B.Ch4.A.4.b Underwriting 3,120 ch
B.Ch4.A.4.i With respect to collateral, Lenders must use commercially reasonable and 1,251 ch
B.Ch4.A.4.i.i Piggyback financing occurs when one or more lenders provide more 1,395 ch
B.Ch4.A.4.d Real Estate Appraisal and Business Valuation Requirements 1,348 ch
B.Ch4.A.4.d.i Independent and have no appearance of a conflict of interest (such as a 3,912 ch
B.Ch4.A.4.d.i Is 90% or more of the estimated value, the Lender may close the loan 6,557 ch
B.Ch4.A.5 Submission of Application for Guaranty for Export Express 1,597 ch
B.Ch4.A.5.a Contents of Lender’s Application for Guaranty 1,407 ch
B.Ch4.A.5.a.ii Export Express Lenders must obtain and retain all documentation in their 2,612 ch
B.Ch4.A.5.b Where to Submit Applications for Guaranty 480 ch
B.Ch4.B EXPORT WORKING CAPITAL PROGRAM (EWCP) 333 ch
B.Ch4.B.1 Eligibility for EWCP 701 ch
B.Ch4.B.2 Eligible Uses of Proceeds for EWCP 2,869 ch
B.Ch4.B.2.ii EWCP loan proceeds may not be used to refinance debt that is already on 1,955 ch
B.Ch4.B.2.ii.v How the new loan will improve the financial condition of the 981 ch
B.Ch4.B.2.ii.i Collateral for the loan being refinanced is transferred to secure the 343 ch
B.Ch4.B.3 Ineligible NAICS Codes 431 ch
B.Ch4.B.4.a.ii Maximum Loans to Businesses with Affiliates 306 ch
B.Ch4.B.4.b Maximum Guaranty Amounts and Percentages 1,698 ch
B.Ch4.B.4.c.ii General: The maximum maturity of an EWCP loan is 36 months. The 2,917 ch
B.Ch4.B.4.d Interest Rates 1,237 ch
B.Ch4.B.4.d.i Pre-Disbursement Changes: After loan approval and prior to first 2,871 ch
B.Ch4.B.4.e Payment Options for EWCP Ongoing Guaranty Fee 2,704 ch
B.Ch4.B.4.e.i Whether the Lender is submitting SBA Form 1502 Reports on EWCP 896 ch
B.Ch4.B.5 Credit Standards for EWCP 865 ch
B.Ch4.B.5.a Processing Methods 409 ch
B.Ch4.B.5.i Non-delegated – When a Lender submits an EWCP loan guaranty request 454 ch
B.Ch4.B.5.i.ii Delegated – When a Lender submits an EWCP loan guaranty request under 565 ch
B.Ch4.B.5.b Underwriting 662 ch
B.Ch4.B.5.c Credit Analysis 2,823 ch
B.Ch4.B.5.c.vii Debt service (DS) is defined as the future required principal and/or interest 627 ch
B.Ch4.B.5.x Ratio calculations for the following financial ratio benchmarks: Current 1,713 ch
B.Ch4.B.5.i EWCP loans must be secured by no less than a first security interest in all 1,053 ch
B.Ch4.B.5.i.ii Standby Letters of Credit: SBA requires additional collateral if an EWCP loan 1,171 ch
B.Ch4.B.6 Submission of Application for Guaranty for EWCP 3,269 ch
B.Ch4.B.6.a Contents of Lender’s Application for Guaranty 3,606 ch
B.Ch4.B.6.a.viii Owner Financial Statements (business or personal, as appropriate) dated 326 ch
B.Ch4.B.6.a.ix Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax 642 ch
B.Ch4.B.6.x Franchise: For any Applicant operating under a franchise, license or similar 1,294 ch
B.Ch4.B.6.x.xiv Management agreements, if applicable, and if the management agreement is 232 ch
B.Ch4.B.6.x.xv Documentation of U.S. National and/or LPR/USCIS status verification in 599 ch
B.Ch4.B.6.b Where to Submit Applications for Guaranty 1,031 ch
B.Ch4.B.6.b.ii PLP-EWCP applications – Lenders submitting applications using their 201 ch
B.Ch4.B.6.b.iii See Chapter 5, E-Tran Terms and Conditions through Disbursement for all 275 ch
B.Ch4.B.7 EWCP-Specific Post-Approval/Pre-Disbursement Requests for Changes 325 ch
B.Ch4.B.8 EWCP-Specific Loan Closing and Disbursement Requirements 408 ch
B.Ch4.B.8.ii EWCP with Master Notes, Sub-Notes, and Sub-Limits: EWCP loans may be 700 ch
B.Ch4.B.8.i On Single Transaction-Specific Loans and Transaction-Based Revolving 428 ch
B.Ch4.B.8.i.ii On an asset-based revolving line of credit where advances are made against a 1,005 ch
B.Ch4.B.8.i.iii Advance rates on foreign purchase orders/contracts or foreign accounts 1,851 ch
B.Ch4.B.8.i.i Payment terms must be in compliance with the terms and conditions in 8,581 ch
B.Ch4.B.8.i.i Export-related inventory taken as collateral must be located within the 759 ch
B.Ch4.B.8.i.i Export-related inventory that is not subject to a valid, perfected, and 2,578 ch
B.Ch4.C.1 Eligibility for International Trade Loans 563 ch
B.Ch4.C.1.ii Indirect exports are considered exports for purposes of determining 1,579 ch
B.Ch3 of Title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.), AND 704 ch
B.Ch3.i.2 Eligible Uses of Proceeds for International Trade Loans 198 ch
B.Ch3.i.2.i Acquire, construct, renovate, modernize, improve, or expand facilities and 2,374 ch
B.Ch3.i.2.i.v Revolving lines of credit (short-term or long-term) where the original 8,018 ch
B.Ch3.i.2.i.i It is unable to modify the terms of the existing loan because a 5,103 ch
B.Ch3.i.2.i.v Evidence that all assets conveyed as a result of the purchase are 1,761 ch
B.Ch3.i.2.a.ii Maximum Loans to Businesses with Affiliates 306 ch
B.Ch3.i.2.b Maximum Guaranty Amounts and Percentages 1,954 ch
B.Ch3.i.2.c.ii Working capital or inventory loans and the financing of intangible assets 1,309 ch
B.Ch3.i.2.c.vi Mixed purpose loans and loans for all types of changes of ownership: When 1,034 ch
B.Ch3.i.2.d Interest Rates 4,219 ch
B.Ch3.i.2.d.i The Prime Rate; or 492 ch
B.Ch3.i.2.d.iii Policy on Variable Interest Rates 389 ch
B.Ch3.i.2.d.i Pre-Disbursement Changes: After loan approval and prior to first 4,038 ch
B.Ch3.i.2.d.i Both the floor and ceiling are stated in the Note; and 5,580 ch
B.Ch3.i.4 Credit Standards for International Trade 858 ch
B.Ch3.i.4.a Processing Methods 399 ch
B.Ch3.i.4.i Non-delegated – When a Lender submits an IT loan guaranty request under 452 ch
B.Ch3.i.4.i.ii Delegated – When a Lender submits an IT loan guaranty request under the 535 ch
B.Ch3.i.4.b Underwriting 301 ch
B.Ch3.i.4.b.i Nature of the business, including a description as to how the Applicant 2,911 ch
B.Ch3.i.4.b.i Justification for revenue growth, i.e., new product lines, sales 2,354 ch
B.Ch3.i.4.b.x Discussion of any liens, judgments, bankruptcy filings or pending 2,400 ch
B.Ch3.i.4.b.i Standby Agreements - only debt that is on full standby (no payments 1,060 ch
B.Ch3.i.4.b.v Assets other than cash – An appraisal or other valuation by an 461 ch
B.Ch3.i.4.c Collateral 380 ch
B.Ch3.i.4.c.i Deed restrictions, covenants, easement provisions, reversionary 1,382 ch
B.Ch3.i.4.c.ii Required Lien Position 1,638 ch
B.Ch3.i.4.c.iii IT loans may not be processed under a Lender’s PLP authority when the IT 299 ch
B.Ch3.i.4.d Real Estate Appraisal and Business Valuation Requirements 734 ch
B.Ch3.i.4.d.i Independent and have no appearance of a conflict of interest (such as a 3,913 ch
B.Ch3.i.4.d.i Is 90% or more of the estimated value, the Lender may close the loan 7,966 ch
B.Ch3.i.5 Submission of Application for Guaranty for International Trade 2,068 ch
B.Ch3.i.5.a Contents of Lender’s Application for Guaranty 1,847 ch
B.Ch3.i.5.a.ii PLP Lenders processing IT loans under their PLP authority must obtain and 2,686 ch
B.Ch3.i.5.a.i Year End Balance Sheet for the last 3 years, including detailed debt 576 ch
B.Ch3.i.5.a.i Appraisal (see Paragraph 4.d, Real Estate Appraisal and Business 756 ch
B.Ch3.i.5.a.v Seller’s interim financial statements no older than 120 days from the 1,817 ch
B.Ch3.i.5.i Non-delegated applications–- For all loans submitted using the non-delegated 627 ch
B.Ch3.i.5.i.ii PLP applications – Lenders submitting applications using their PLP authority 190 ch
B.Ch3.i.5.i.iii Reconsideration of declined non-delegated IT applications (13 CFR § 1,405 ch
B.Ch5.A E-TRAN TERMS AND CONDITIONS 2,417 ch
B.Ch5.A.4 Construction Loan Provisions 651 ch
B.Ch5.A.4.ii Examples of evidence include a certificate issued by a licensed building 1,002 ch
B.Ch5.A.4.i Evidence that the licensed contractor has furnished a l00% performance bond 2,265 ch
B.Ch5.A.4.i.iii Obtain evidence of Borrower’s ability to pay cost overruns or additional 513 ch
B.Ch5.A.4.v.vi Obtain lien waivers or releases from all material men, contractors, and 1,290 ch
B.Ch5.B POST-APPROVAL MODIFICATIONS 3,512 ch
B.Ch5.B.iii May not exceed the dollar limit for the program at the time the loan was 806 ch
B.Ch5.C TRANSFER OF GUARANTY BETWEEN PARTICIPATING LENDERS 585 ch
B.Ch5.D LOAN CLOSING AND DISBURSEMENT 2,574 ch
B.Ch5.D.ii Master Notes and Sub-Notes: Each loan will have a Master Note to cover the 1,327 ch
B.Ch5.D.ii.iv Except for those items covered in subparagraphs h.ii and iii immediately 575 ch
B.Ch5.D.ii.iv.vi Upon termination of the account, the remaining funds must be returned to the 319 ch
B.Ch5.D.ii.iv.ii Initial interest rate as percent. 715 ch
B.Ch5.D.ii.x With regards to Borrower payment application: Lender will apply each 2,342 ch
B.Ch5.D.ii.x.iii The purpose of each disbursement. 741 ch
B.Ch5.D.ii.x.iii Evidence of an electronic funds transfer to a vendor along with a copy of the 228 ch
B.Ch5.D.ii.i With the exception of SBA Express and Export Express loans, Lenders must 3,289 ch
B.Ch5.D.ii.i.iii Regardless of the delivery method, when the Lender uses its own guaranty 4,000 ch
B.Ch5.D.ii.i.iii No principal who holds at least 50 percent of the ownership or voting interest 639 ch
B.Ch5.D.ii.i.vi Environmental - For any real estate pledged as collateral for the loan or 2,381 ch
B.Ch5.D.ii.i.iii Sell, lease, pledge, encumber (except by purchase money liens on property 1,930 ch
B.Ch5.D.ii.i.ii Obtain evidence of no un-remedied adverse change since the date of the 509 ch
B.Ch5.D.ii.i.iv Make, where applicable, the required flood hazard determination and require 389 ch
B.Ch5.D.ii.i.vi Obtain the Borrower’s agreement that it will, to the extent feasible, purchase 389 ch
B.Ch5.D.ii.i.viii Require, where applicable, appropriate environmental reviews and 1,877 ch
C.Ch1 ELIGIBILITY THROUGH SUBMISSION OF APPLICATION 524 ch
C.Ch1.A.1 Job Creation or Retention (Dollars per Job) 1,024 ch
C.Ch1.A.2 Other Economic Development Objectives and Public Policy Goals 2,227 ch
C.Ch1.A.2.ii Renewable energy sources that generate more than 15% of energy used at 924 ch
C.Ch1.A.2.ii.iv With respect to paragraphs i. and ii. above, the Applicant must document the 1,173 ch
C.Ch1.A.2.i.ii $100,000 guaranteed by SBA for Projects located in Special Geographic 665 ch
C.Ch1.B THIRD PARTY LENDER PARTICIPATION 1,047 ch
C.Ch1.B.1 Third Party Loan 13 CFR § 120.920 3,065 ch
C.Ch1.B.1.ii Third Party Loans may use swap contracts. In order to use an interest rate 1,161 ch
C.Ch1.B.2 Interim Financing 1,969 ch
C.Ch1.B.3 Financing Involving Industrial Development Bonds or Industrial Revenue Bonds 2,546 ch
C.Ch1.B.4 Financing Involving Historic Rehabilitation Tax Credits 1,934 ch
C.Ch1.C.1 Land and Necessary Land Improvements 1,154 ch
C.Ch1.C.2 Machinery and Equipment 628 ch
C.Ch1.C.4 Professional Fees 323 ch
C.Ch1.C.5 Other Applicant Expenditures 346 ch
C.Ch1.C.6 Short-Term Debt 413 ch
C.Ch1.C.8 Contingency Fund 347 ch
C.Ch1.C.9 “Do-it-yourself” Construction 867 ch
C.Ch1.C.10 Permissible Debt Refinance without Expansion 246 ch
C.Ch1.C.10.i Substantially all (75% or more) of the proceeds of the existing debt 3,207 ch
C.Ch1.C.10.i.iii “Refinancing Project” means the fair market value of the Eligible Fixed 361 ch
C.Ch1.C.10.i.iv “Eligible Business Expenses (EBE)” are payments of the business for either 4,306 ch
C.Ch1.C.10.i.iii Acceptance of a Note executed by the Borrower for the balance, or any 3,408 ch
C.Ch1.C.10.i.ii PCLP CDCs may not approve, under their delegated authority, the 810 ch
C.Ch1.C.10.i Credit memorandum. The CDC must provide an analysis in its credit 538 ch
C.Ch1.C.10.i.i Substantially all (75% or more) of the proceeds of the indebtedness 2,102 ch
C.Ch1.C.10.i.iv Appraisal. Appraisals are not required at time of application. Appraisals 273 ch
C.Ch1.C.10.v Documentation to Verify Lien(s) at Application. In considering the 480 ch
C.Ch1.C.10.v.vi Interim Lender Documentation. The Interim Lender must execute SBA Form 2,594 ch
C.Ch1.C.11 Permissible Debt Refinancing with Expansion 1,201 ch
C.Ch1.C.11.i Substantially all (75% or more) of the proceeds of the original loan 7,508 ch
C.Ch1.C.11.i.i Substantially all (75% or more) of the proceeds of the original loan 1,238 ch
C.Ch1.C.12 Eligible Administrative Costs 595 ch
C.Ch1.C.13 Change of Ownership 2,908 ch
C.Ch1.C.14 Pre-Existing Debt on the Project Property 330 ch
C.Ch1.C.15 Businesses owned by ESOPs 863 ch
C.Ch1.C.17 Ineligible 504 Projects 501 ch
C.Ch1.D 504 LOAN AND DEBENTURE TERMS AND CONDITIONS 185 ch
C.Ch1.D.1 Debenture Limits (Minimum and Maximum) 2,475 ch
C.Ch1.D.2 Loan Maturities 900 ch
C.Ch1.D.3 Interest Rates 389 ch
C.Ch1.E CREDIT STANDARDS 1,104 ch
C.Ch1.E.1.a Pro-Forma Balance Sheet Analysis 670 ch
C.Ch1.E.1.b Repayment Ability Analysis 1,145 ch
C.Ch1.E.1.b.iv Balance sheet and income statement dated within 120 days prior to 569 ch
C.Ch1.E.1.b.i Justification for anticipated sales volume and/or revenue growth as a 510 ch
C.Ch1.E.1.c Borrower’s Contribution 910 ch
C.Ch1.E.1.i Must contribute at least 15%, in which case the Debenture will 275 ch
C.Ch1.E.1.i.ii Must contribute at least 20%, if the Project involves a new business 958 ch
C.Ch1.E.1.v.vi Below is a list that contains examples of properties that SBA 2,356 ch
C.Ch1.E.1.d Additional Borrower’s Contribution and/or Collateral 635 ch
C.Ch1.E.1.v Limited or no net worth. 184 ch
C.Ch1.E.1.e Global Cash Flow Analysis 615 ch
C.Ch1.E.1.e.ii Rental Income 202 ch
C.Ch1.E.1.f Independent Studies or Reports 374 ch
C.Ch1.E.1.g Feasibility Studies 651 ch
C.Ch1.E.1.h Ratio Analysis 634 ch
C.Ch1.E.1.i Owners or Manager’s Experience 376 ch
C.Ch1.E.1.i.iv Brief description of the business’s management team including principal’s 373 ch
C.Ch1.E.1.k Life Insurance Analysis 381 ch
C.Ch1.E.1.l Credit Reports 427 ch
C.Ch1.E.1.m Current on Taxes 282 ch
C.Ch1.E.1.n No Prior Loss to the Government or Delinquent Federal Debt 260 ch
C.Ch1.E.1.o Payment Delinquencies, Liens and Bankruptcies 269 ch
C.Ch1.E.1.p Affiliate Financial Statements 460 ch
C.Ch1.E.1.q Miscellaneous Matters that the CDC Must Address in the Credit 384 ch
C.Ch1.E.1.q.i From any SBA Program, directly or indirectly; or 697 ch
C.Ch1.E.1.v.vi The Debenture Pricing. 860 ch
C.Ch1.E.1.x Whether the loan is for the following special purpose or the Applicant is or 426 ch
C.Ch1.E.2.a Collateral 4,664 ch
C.Ch1.E.2.b Appraisals 1,582 ch
C.Ch1.E.2.b.i Independent and have no appearance of a conflict of interest (such as a 3,446 ch
C.Ch1.E.2.b.i Equity in land owned for 2 years or more is being contributed as part 1,468 ch
C.Ch1.F.1 Processing Methods 2,559 ch
C.Ch1.F.2 Contents of a 504 Loan Application 828 ch
C.Ch1.F.2.ii.iii Copies of key cost documents such as contractor costs, estimates, vendor 294 ch
C.Ch1.F.2.ii.iv Independent appraisal for project real estate as required by Paragraph 2.b. of 521 ch
C.Ch1.F.2.ii.viii Completed SBA Form(s) 159, “Fee Disclosure Form and Compensation 1,979 ch
C.Ch1.F.2.ii.xv Where appropriate, projected annualized income statements for the first 2 1,394 ch
C.Ch1.F.2.ii.xx IRS Form 4506-C, IVES Request for Transcript of Tax Return or IRS Form 210 ch
C.Ch1.F.2.ii.xxi Documentation of U.S. National and/or LPR/USCIS status verification – 511 ch
C.Ch1.F.2.ii.xxii Not required until loan closing: IRS Transcripts and complete verification of 389 ch
C.Ch1.F.2.i.iii Financial statements and/or Federal income tax returns for affiliated entities 182 ch
C.Ch1.F.3 Submission of Application 571 ch
C.Ch1.F.3.ii One hundred percent of the Applicant’s ownership and percentage of 399 ch
C.Ch1.F.3.i.ii Applications for projects that result in change of ownership or transactions 649 ch
C.Ch1.F.3.i.iii SLPC will review each complete ALP Express Loan application for eligibility 419 ch
C.Ch1.F.3.i.iv SLPC will not review the ALP CDC’s credit decisions for any application 315 ch
C.Ch1.F.3.v ALP CDCs must submit to the SLPC for review and approval any servicing 196 ch
C.Ch1.F.3.v.vi Once SLPC determines the applicant and the loan are eligible and that SBA 1,740 ch
C.Ch2.A SBA E-TRAN TERMS AND CONDITIONS 708 ch
C.Ch2.A.i.ii PCLP: CDC drafts and executes on SBA’s behalf 3,474 ch
C.Ch2.A.i.i Evidence of compliance with the “"National Earthquake Hazards Reduction 1,853 ch
C.Ch2.A.i.i.ii Inspections must be made by a qualified engineer, appraiser, or other party 559 ch
C.Ch2.A.i.v.vi Where the CDC or the Applicant is to inject funds into the construction 1,279 ch
C.Ch2.B MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS 3,476 ch
C.Ch2.B.i Verification that the proposed changes to the ownership of the Borrower 192 ch
C.Ch2.B.i.ii Verification that there has been no prior loss to the Government caused by 774 ch
C.Ch2.C.1 Interim Financing 945 ch
C.Ch2.C.1.iv Funds not disbursed after 1 year will be applied to pay down the Third Party 628 ch
C.Ch2.C.2 Responsibility for Closing the 504 Loan and Debenture 2,904 ch
C.Ch2.C.3.i CDCs and SBA must use SBA Form 2286, “504 Debenture Closing 664 ch
C.Ch2.C.3.i.ii Opinion of CDC Counsel; and 1,428 ch
C.Ch2.C.4 Designated Attorney 293 ch
C.Ch2.C.4.ii Membership in the bar of the state in which the attorney’s 504 closing 1,909 ch
C.Ch2.C.4.ii.iv Attendance at an SBA approved 504 loan closing training course. Attorneys 2,975 ch
C.Ch2.C.4.i Deliver annually to the 504 Loan Program Division on or before the renewal 1,212 ch
C.Ch2.C.4.i.iii Submit evidence of attendance at an SBA-approved closing update course 980 ch
C.Ch2.C.5.i Certify that the Project costs were paid in full and that the Project proceeds 1,542 ch
C.Ch2.C.5.i.ii Notify SBA counsel in writing of planned debenture closings at least 30 days 296 ch
C.Ch2.C.5.i.iii Request from the SLPC all necessary modifications to the E-Tran Terms and 312 ch
C.Ch2.C.5.i.iv Each CDC must issue a written opinion based upon financial statements 1,982 ch
C.Ch2.C.5.i.vii Request that access to each E-Tran Terms and Conditions approval and all 580 ch
C.Ch2.C.5.i.viii Electronically submit closing packages by the deadline established by SBA 209 ch
C.Ch2.C.5.i.ix Use only the 504 Debenture Closing Checklist and submit documents in the 571 ch
C.Ch2.C.5.x Hold all original loan documents until SBA gives the CDC written 677 ch
C.Ch2.C.5.x.xi Send by overnight mail to the CSA the necessary debenture closing 758 ch
C.Ch2.C.5.x.xii Forward the original of all documents listed on SBA Form 2286, “504 705 ch
C.Ch2.C.5.x.xiii Ensure that all recorded interim lender documents are canceled of record 354 ch
C.Ch2.C.5.i Issue an annual 504 debenture closing schedule with SBA District Office 418 ch
C.Ch2.C.5.i.ii Review closing packages. SBA counsel must use the standard Checklist to 684 ch
C.Ch2.C.5.i.iii Notify CDCs of deficiencies. SBA counsel may reject late packages or 1,015 ch
C.Ch2.C.5.v Issue an SBA counsel closing opinion. Once SBA counsel is satisfied with 436 ch
C.Ch2.C.5.v.vi Notify the CDC and the CSA which loans SBA has approved for debenture 1,531 ch
C.Ch2.C.5.c Central Servicing Agent’s (CSA) Responsibilities 309 ch
C.Ch2.C.5.c.ii Complete the Servicing Agent Agreement and Note: The CSA fills in the 205 ch
C.Ch2.C.5.c.iii Distribute post-closing documents. The CSA will provide the following 402 ch
C.Ch2.C.6 Debenture Pools 316 ch
C.Ch2.C.7.i Guidance on loan servicing is outlined in SOP 50 55, “504 Loan Servicing 1,221 ch
C.Ch3.A DETERMINING SBA’S SHARE OF THE PROJECT COSTS 799 ch
C.Ch3.B STEPS TO CALCULATE THE GROSS DEBENTURE 2,035 ch
C.Ch3.C SEPARATE PAYMENT OF THE DEBENTURE FEES 1,040 ch
C.Ch3.D WHEN THE DEBENTURE IS PRICED 962 ch
C.Ch3.E FUNDING THE DEBENTURE 272 ch
C.Ch3.F DISBURSEMENT OF DEBENTURE PROCEEDS 758 ch
App1 FORMS AND RELATED SOPS 3,211 ch
App2 ACRONYMS 707 ch
App2.1.2 Complete File Review 4,957 ch
App3 DEFINITIONS 2,771 ch
App3.1 (13 CFR § 120.600 7(a) Loan Program Only) The document the FTA issues 305 ch
App3.1.2 (13 CFR § 120.802 504 Loan Program Only) A document issued by SBA or its agent 1,380 ch
App3.1.4 Acting as a Lender Service Provider; and 14,582 ch
App3.1.3 Directs the FTA to issue Certificates. 1,630 ch
App3.1.1 Accredited Senior Appraiser (ASA) accredited through the American Society of 6,934 ch
App4 DEFINITIONS – ENVIRONMENTAL 18,780 ch
App5 RELIANCE LETTER 4,904 ch
App6 NAICS CODES OF ENVIRONMENTALLY SENSITIVE INDUSTRIES 4,250 ch
App7 REQUIREMENTS PERTAINING TO GAS STATION LOANS 2,768 ch
App7.C Results of Environmental Investigation. 2,862 ch
App8 SBA ENVIRONMENTAL INDEMNIFICATION AGREEMENT 636 ch
App8.I RECITALS 9,099 ch
App8.W "Purchase and Sale Documents" means and includes every document memorializing 8,907 ch
App8.W.4 Environmental Insurance. Borrower shall include Lender as a loss payee on all 1,663 ch
App8.V REMEDIATION 10,373 ch
App8.X LOAN DEFAULT 10,525 ch
App8.U S. Small Business Administration 1,672 ch
App8.U.2 U.S. Small Business Administration, an Agency of the United States Government 6,327 ch
App8.U S. Small Business Administration 1,067 ch
App9 SAMPLE BORROWING BASE CERTIFICATE AND REPORT TO 5,179 ch
App10 ELECTRONIC SIGNATURES 5,160 ch
App10.D LENDER LIABILITY FOR FAILURE TO ADHERE TO PRESCRIBED 1,395 ch
App11 RECORD RETENTION REQUIREMENTS 1,011 ch
App11.2 Federally-regulated Lenders must comply with the requirements of their FFIR’s 1,574 ch
App12 SBA EMAIL ADDRESSES 6,331 ch

Sources: SOP 50 10 8 (467 pages, effective 2025-06-01) and 5 SBA notices, all fetched from SBA and quoted verbatim. Generated 2026-09-02.