What changed in government lending.
New SOPs, procedural and information notices, final rules and state program changes, newest first, each with what a lender should do about it and a link to the source.
Subscribe by RSSNovember 2026
- Procedural notice
Procedural Notice 5000-883564: equity flexibility for veteran business acquisitions and related SOP 50 10 8.1 revisions
For changes of ownership where veterans will own at least 50% after the transaction, standby debt, seller debt on full standby and non-controlling minority equity may supply up to 100% of the required equity injection (normally capped at half) for loans that receive an SBA loan number from November 11, 2026 through September 30, 2027. The minimum injection itself is not reduced. The notice also limits refinancing of a lender's own 7(a) loan to non-delegated processing, requires review of personal credit reports for every natural-person co-borrower and guarantor regardless of ownership, and allows an evaluation instead of an appraisal for commercial real estate securing 7(a) Small and SBA Express loans unless related parties are involved or an appraisal is needed.
What to do: For veteran acquisitions using this flexibility, record each owner's veteran status in the SBA loan system and identify every equity source by type, provider and amount in the credit memo. Route any refinance of your own 7(a) loan through non-delegated processing, and pull personal credit reports for all natural-person co-borrowers and guarantors.
Effective Nov 11, 2026Read the source - Information noticeSSBCI· Advantage Illinois LGP· Advantage Illinois PLP· NY CPLF· Illinois Climate Bank PLP· and 11 more
Treasury sets final modification deadlines and post-2028 rules for SSBCI Capital Programs
New FAQs say jurisdictions may request material program modifications until September 30, 2027, and Treasury does not expect to act on administrative changes submitted after December 31, 2027. After Treasury's authority ends on March 11, 2028, funds already disbursed stay with the jurisdiction. Allocated funds used for the first time after that date must still follow the SSBCI statute, Allocation Agreement and Guidelines, apart from listed provisions. Returned funds and program income are generally freed from SSBCI rules, and jurisdictions may change their programs without Treasury approval.
What to do: Expect state SSBCI programs to keep running after March 2028, possibly redesigned. For each loan, ask the state administrator whether it is funded with SSBCI allocated funds, which still carry SSBCI certifications and customer protection limits, or with returned funds or program income.
October 2026
- Information notice
SPUR Guaranteed Loan Program opens for FY2027 under the OneRD rule
The Rural Business-Cooperative Service began accepting applications on October 27, 2026 for the Strengthening Processing for US Ranchers (SPUR) Guaranteed Loan Program, with at least $5 billion in loan level beginning in FY2027. SPUR is designed like B&I and administered under 7 CFR part 5001, but it is limited to meat, poultry and seafood processing, has no geographic restriction, carries a 90% guarantee, a 3% guarantee fee, a 0.55% retention fee and a 0.5% fee for a guarantee before construction completion, and requires the lender to hold at least 10% of the loan.
What to do: For meat, poultry or seafood processing deals, including urban ones, compare SPUR with B&I and talk to the Rural Development State Office before applying. Plan for the 10% minimum retention instead of B&I's 7.5%.
- Information notice
DCEO clarifies Section M borrower reporting in the Master Agreements
DCEO restated that Section M of the Master Participation and Master Guarantee Agreements requires each loan agreement to make the borrower report annually to DCEO on jobs, post-closing investment, and prior-year revenue and net income. Starting with the CY2027 annual reporting cycle, DCEO expects to add these fields to lender reporting, which until now covered only subsequent private financing. Broader agreement language changes will come with the next agreement revision.
What to do: Confirm your loan agreements include the Section M borrower reporting covenant and plan to collect jobs, investment, revenue and net income data for the CY2027 reporting cycle.
- Information notice
Advantage Illinois receives its third SSBCI tranche
DCEO announced that Advantage Illinois has received its third tranche of SSBCI funding from Treasury, adding resources for the participation and guarantee programs.
What to do: No change to terms was announced. Lenders with eligible deals can continue to submit them.
- Guide
Modification procedures revised: larger reallocations allowed without an Allocation Agreement amendment
Treasury raised the threshold at which moving allocated funds between a jurisdiction's approved programs counts as a material modification from 10% to 20%, so states can shift more money between programs without a formal amendment.
What to do: Program capacity can change faster. Confirm current funding availability with the state program before committing SSBCI support to a borrower.
Effective Oct 20, 2026Read the source - Information notice
SBA Form 1506 Servicing Agent Agreement updated (Information Notice 5000-881291)
SBA revised SBA Form 1506 to conform with Executive Order 14247. The Third Party Lender fee must now be withheld from the CDC processing fee, and borrower payments to the Central Servicing Agent must be by ACH debit or wire only; checks are not accepted. CDCs had a 30-day grace period to use the new form.
What to do: Use the revised SBA Form 1506 for closings after the grace period, withhold the Third Party Lender participation fee from the CDC processing fee, and set up ACH for each borrower.
Effective Oct 1, 2026Read the source
September 2026
- Information notice
SOP 50 10 8.1 issued with Technical Policy Updates (Information Notice 5000-882227)
SBA replaced the SOP 50 10 8.1 text published in August with a version containing technical policy updates, effective for applications received on or after October 1, 2026. Changes include: trusts owning 20% or more in aggregate must each give an unlimited guaranty and the trustor must also guarantee; 7(a) Small and SBA Express may finance changes of ownership under Appendix 15 with an internal valuation allowed at a purchase price of $350,000 or less; working-capital true-ups are not seller rebates; special purpose property acquisitions may use a single loan up to 25 years; a buyer's existing QoE report may be used with a reliance letter or second review; mixed-purpose loans with 51% or more real estate may run up to 25 years; and the annual field examination for Working Capital CAPLines applies at $1,000,000 or more.
What to do: Use SOP 50 10 8.1 with Technical Policy Updates for every application received on or after October 1, 2026, and SOP 50 10 8 for applications submitted through September 30, 2026. Until SBA updates its forms, collect the new certifications and information required by the SOP and keep them in the loan file.
Effective Oct 1, 2026Read the source - Information notice
SOP 50 10 8.1 with Technical Policy Updates (Information Notice 5000-882227)
Replaces the SOP 50 10 8.1 text published in August before it took effect. For 504 loans it lets the Third Party Lender send its underwriting analysis directly to SBA's Sacramento Loan Processing Center, removes the bar on a Third Party Loan amortizing over a longer period than the debenture, and expands the 327 procedure when a non-environmental indemnification provision appears in the title records. It also requires that when trusts together own 20% or more of the applicant, each trust gives an unlimited full guaranty and the trustor also guarantees personally.
What to do: Use the September 25, 2026 SOP text, not the August version. Decide with each Third Party Lender whether its underwriting analysis goes into the CDC credit memorandum or straight to SBA, and review title records early for indemnification provisions that need a waiver or a 327 request.
Effective Oct 1, 2026Read the source - Information notice
504 debenture funding schedule for calendar year 2027 (Information Notice 5000-881289)
SBA published the 2027 cut-off, pricing and funding dates for 504 debentures. 20- and 25-year debentures are offered every month; 10-year debentures only in the months marked on the schedule. The Central Servicing Agent cut-off stays about 14 days before pricing.
What to do: Plan closings against the 2027 CSA cut-off dates, and steer 10-year (equipment) debentures to the months that offer them.
Effective Jan 1, 2027Read the source - Information notice
FY 2027 7(a) fees (Information Notice 5000-881797)
For 7(a) loans approved October 1, 2026 through September 30, 2027, the lender's annual service fee is 0.55% of the outstanding guaranteed portion. Upfront fees for maturities over 12 months are 2% of the guaranteed portion for loans of $150,000 or less, 3% for $150,001 to $700,000, and 3.5% up to $1,000,000 plus 3.75% above $1,000,000 for larger loans; short-term loans pay 0.25%. The upfront fee is 0% for loans of $700,000 or less to manufacturers (NAICS 31-33), listed food supply chain industries and businesses located in a rural area. SBA Express loans to veteran-owned businesses pay no upfront fee.
What to do: Update pricing, fee disclosures and closing statements for FY 2027 approvals, check NAICS codes and rural location for the 0% upfront fee, document veteran eligibility in the file for SBA Express fee relief, and do not pass the annual service fee to the borrower.
Effective Oct 1, 2026Read the source - Information notice
FY 2027 504 fees (Information Notice 5000-881796)
For 504 loans approved October 1, 2026 through September 30, 2027, the upfront guaranty fee is 0.50% and the annual service fee is 0.203% of the outstanding balance (down from 0.209% in FY 2026). Both fees are waived for loans to manufacturers (NAICS 31-33), to listed food supply chain NAICS codes, and to businesses located in a rural area, including debt refinance loans with or without expansion. In FY 2026 the waiver covered manufacturers only.
What to do: Price FY 2027 approvals at 0.50% upfront and 0.203% annual, and check every application against the manufacturer, food supply chain and rural waivers before quoting fees.
Effective Oct 1, 2026Read the source
August 2026
- Information notice
SOP 50 10 8.1 announced (Information Notice 5000-880695)
SBA announced SOP 50 10 8.1, which moves change-of-ownership lending into a new Appendix 15, adds flexibilities for SBA Express and same institution debt refinancing, and folds in the policy and procedural notices issued since SOP 50 10 8 (citizenship and residency, International Trade, 7(a) and 504 loan limit coordination, the prior loss waiver, MARC, the SBSS sunset and the alternative base rates).
What to do: Train credit and closing staff on SOP 50 10 8.1, in particular Appendix 15 (changes of ownership), Appendix 14 (debt refinancing) and Appendices 16 to 20, which consolidate guaranty, maturity, interest rate, collateral and submission rules.
Effective Oct 1, 2026Read the source - Information notice
SOP 50 10 8.1 issued (Information Notice 5000-880695)
SOP 50 10 8.1 applies to 504 applications issued an SBA loan number on or after October 1, 2026; applications submitted through September 30, 2026 stay under SOP 50 10 8. It folds in the policy and procedural notices issued since SOP 50 10 8, including Policy Notices 5000-876441, 5000-879058 and 5000-879464 and Procedural Notices 5000-872764 and 5000-876626. Until SBA updates its application forms, lenders must collect every certification required by both the current forms and the new SOP and keep them in the loan file.
What to do: Switch 504 processing to SOP 50 10 8.1 for applications submitted on or after October 1, 2026, and keep the extra certifications the new SOP requires in each loan file until revised forms are released.
Effective Oct 1, 2026Read the source
July 2026
- Information notice
Advantage Illinois Q2 2026 newsletter: reporting and closing reminders
DCEO flagged recurring problems: incomplete Exhibit I submissions and delinquency updates, wrong NAICS codes, closing documents that do not match the approval letter, and missed Eligible Passive Company / Operating Company steps highlighted in Treasury office hours. It also noted a brief processing slowdown during the FY27 rollover.
What to do: Complete every Exhibit I field and update it when a loan goes delinquent, verify each borrower's NAICS code, check the closing package against the approval letter before submitting, and review internal EPC/OC procedures.
May 2026
- Policy notice
Policy Notice 5000-879464: prior loss waiver for non-controlling minority owners
SBA may waive the prior loss rule (13 CFR 120.110(q)) case by case when the only link to a prior loss on an SBA 7(a) or 504 loan is an owner who held less than 20% of the defaulted business, was not a guarantor or co-borrower on it, and had no control. The waiver does not cover losses on non-SBA federal loans, PPP or COVID EIDL, and delinquent federal nontax debt still makes the applicant ineligible.
What to do: When CAIVRS or other checks show a prior SBA loss tied only to a non-controlling minority owner, request the waiver before approval and document the owner's equity share, guarantor status and lack of control.
Effective Jun 1, 2026Read the source - Policy notice
Prior loss rule waiver for non-controlling owners (Policy Notice 5000-879464)
SBA may waive, case by case, the rule that bars an applicant whose owner was tied to a business that caused a loss on a 7(a) or 504 loan, if that owner held less than 20%, did not guarantee or co-borrow on the defaulted loan, and had no control. The waiver does not cover non-SBA federal losses, PPP or COVID EIDL losses, or delinquent federal debt.
What to do: When CAIVRS or the application shows a prior SBA loss tied to a small non-controlling owner, document the owner's stake, guaranty status and lack of control and request the waiver at application.
Effective Jun 1, 2026Read the source - Policy notice
Policy Notice 5000-879058: coordination of 7(a) and 504 maximum loan limits
SBA clarified that a borrower's outstanding 7(a) balance, up to the 7(a) maximum, does not reduce the 504 debenture limit, so a lender may approve a 7(a) loan first and a CDC may then approve a 504 loan. The 7(a) limits remain $5,000,000 per loan and $3,750,000 of total SBA guaranty outstanding to a borrower and its affiliates ($4,500,000 for qualifying export loans).
What to do: When a borrower needs both programs, approve the 7(a) loan first and tell the processing center that a companion 504 application is coming.
Effective Jul 4, 2026Read the source - Policy notice
7(a) and 504 maximum loan limits coordinated (Policy Notice 5000-879058)
A borrower's outstanding 7(a) balance no longer reduces the 504 maximum. The $5,000,000 504 limit counts only 504 loans of the borrower and affiliates, so a 7(a) loan for working capital and a 504 loan for the facility can be made in sequence. A 504 project may also include several eligible assets financed at the same time with separate 504 loans, within debenture limits.
What to do: Recalculate 504 capacity for borrowers with existing 7(a) loans, counting only 504 debentures against the $5,000,000 limit.
Effective Jul 4, 2026Read the source - Information notice
Treasury confirms undisbursed SSBCI funding is rescinded on September 30, 2030
A new FAQ on the Technical Assistance Grant Program and SBOP notes that by statute all undisbursed SSBCI funding is rescinded on September 30, 2030, and that TA disbursement requests submitted after June 30, 2030 are not expected to be processed. Treasury expects to deny extensions beyond the five-year TA and three-year SBOP limits or past September 30, 2029.
What to do: No direct action for capital program lenders. Borrower technical assistance funded by SSBCI is time-limited.
April 2026
- Information notice
FY 2026 oversight fee schedule for 7(a) lenders (Information Notice 5000-878182)
SBA's Office of Credit Risk Management revised the annual oversight fee charged to 7(a) lenders for FY 2026 to $128.19 per $1 million for non-delegated lenders and $144.64 per $1 million for delegated lenders, the same rate for SBA-supervised and federally regulated lenders. SBA bills the fee annually.
What to do: Budget for the revised oversight fee and pay SBA's invoice by its due date; unpaid oversight fees can affect participation and delegated authority.
Effective Apr 14, 2026Read the source
March 2026
- Information notice
FAQ guidance on the citizenship and SBSS sunset notices (Information Notice 5000-877673)
SBA answered common questions on the March 1, 2026 changes. Ineligible persons may divest completely before the SBA loan number is issued; naturalized citizens with dual citizenship are eligible; existing loans with ineligible owners may be serviced but not increased. For 7(a) Small, lenders may still choose Standard 7(a) underwriting for loans of $350,000 or less, and a 1.10:1 debt service coverage ratio confirmed against two months of bank activity satisfies the repayment ability requirement.
What to do: Apply the FAQ answers when structuring divestitures, servicing loans with former LPR owners and underwriting 7(a) Small loans without an SBSS score.
Effective Mar 1, 2026Read the source - Procedural notice
Owner date of birth requirement extended (Procedural Notice 5000-877472)
SBA extended the requirement, first issued in March 2025, that lenders enter the date of birth of every owner they enter in E-Tran until the application process is updated.
What to do: Collect and enter the date of birth for every owner listed in the SBA loan system on each application.
Effective Mar 18, 2026Read the source - Procedural notice
Owner date of birth requirement extended (Procedural Notice 5000-877472)
Extends Procedural Notice 5000-866498 (effective March 27, 2025): CDCs must enter the date of birth of every owner they enter into the SBA loan system until the application process is updated.
What to do: Collect a date of birth for every owner at intake and enter it with the ownership data.
Effective Mar 18, 2026Read the source - Procedural notice
SOP 52 00 B amended for citizenship requirements (Procedural Notice 5000-877356)
SBA incorporated its new citizenship policy into SOP 52 00 B. For loans beginning on or after April 1, 2026, intermediaries may make microloans only to businesses 100% owned by U.S. Citizens or U.S. Nationals with their Principal Residence in the United States, its territories or possessions, and Lawful Permanent Residents, visa holders, DACA recipients and other listed Ineligible Persons may not be owners. SBA-funded technical assistance is limited to individuals and businesses owned by U.S. Citizens or U.S. Nationals and must go only to current or eligible prospective microborrowers.
What to do: Collect and document citizenship and principal residence for 100% of owners at application, record in each loan file that no owner is an Ineligible Person, and restrict grant-funded technical assistance to eligible clients.
Effective Apr 1, 2026Read the source - Policy notice
FY2026 OneRD fee and guarantee percentage notice raises the B&I guarantee to 85% for loans under $5 million
The FY2026 annual notice sets B&I guarantees at 85% for loans under $5 million and 80% for loans of $5 million to $25 million. The FY2025 notice (89 FR 53041) had set 80% for all standard B&I loans. Fees are unchanged: a 3.0% guarantee fee and 0.55% annual retention fee, or 1.0% and 0.50% for reduced-fee projects, plus 0.50% when the guarantee is issued before construction is complete. The rates apply to loans obligated in FY2026.
What to do: Structure loans under $5 million obligated in FY2026 with the 85% guarantee and confirm the percentage and fee rates on the conditional commitment. Watch the Federal Register for the FY2027 annual notice before quoting terms on loans that will be obligated after September 30, 2026.
Effective Oct 1, 2025Read the source - Policy notice
Microloan citizenship policy (Policy Notice 5000-877232)
SBA announced that, effective April 1, 2026, 100% of all direct and indirect owners of a microloan applicant must be U.S. Citizens or U.S. Nationals.
What to do: Stop approving microloans to businesses with any owner who is not a U.S. Citizen or U.S. National from April 1, 2026, and update intake forms and procedures.
Effective Apr 1, 2026Read the source
February 2026
- Information notice
California receives its third and final SSBCI tranche
IBank reported to its board that California received the third and final SSBCI tranche, $410 million, bringing the state total to $1.18 billion, with IBank and State Treasurer's Office programs deploying the funds.
What to do: No action required; SSBCI cash pledges for Collateral Support enrollments remain funded.
- Procedural notice
SBSS sunset supplemental guidance for 7(a) Small loans (Procedural Notice 5000-876777)
This notice replaced the SOP text in Procedural Notice 5000-875701. 7(a) Small loans approved on or after March 1, 2026 must be underwritten with the lender's generally accepted commercial credit analysis: a credit history analysis (scoring models allowed if permitted by the lender's regulator, used on similar non-SBA loans and not based solely on consumer scores) and a repayment analysis showing debt service coverage of at least 1.10:1 on a historical or projected basis, confirmed against the two most recent months of commercial bank activity on the primary operating account. If the ratio is not met, the loan must be processed as Standard 7(a) or SBA Express.
What to do: Build the 1.10:1 DSC calculation and two-month bank activity review into your 7(a) Small credit memo template, state any score used with its approval range, and reroute applications that fail the ratio to Standard 7(a) or SBA Express.
Effective Mar 1, 2026Read the source - Procedural notice
Revised ownership, citizenship and residency requirements (Procedural Notice 5000-876626)
From March 1, 2026, 100% of direct and indirect owners and all SBA-required guarantors must be U.S. citizens or U.S. nationals with their principal residence in the United States or its territories, and entity owners must be organized in the United States. Lawful permanent residents are now ineligible owners, the 5% foreign ownership exception is gone, a six-month lookback applies unless an ineligible person fully divests before the loan number is issued, and lenders must enter 100% of direct and indirect owners in the SBA loan system. Applications with LPR ownership that reached R1 status by 11:59 PM Eastern on February 28, 2026 were still processed.
What to do: Verify citizenship and principal residence for every owner and required guarantor, attach the new applicant certifications to the application until SBA Form 1919 is updated, document U.S. national status with a birth certificate or passport, and certify in the SBA loan system that no owner or guarantor is an ineligible person.
Effective Mar 1, 2026Read the source - Procedural notice
Applicant ownership limited to U.S. citizens and U.S. nationals (Procedural Notice 5000-876626)
Implements Policy Notice 5000-876441. 100% of direct and indirect owners and SBA-required guarantors must be U.S. citizens or U.S. nationals with their principal residence in the United States, its territories or possessions, and entity owners must be organized in the United States. Lawful permanent residents may no longer own any share of an applicant, and the 5% foreign-ownership exception in Procedural Notice 5000-872050 is rescinded. Applies to delegated 504 loans numbered on or after March 1, 2026 and non-delegated applications that reach R1 status on or after that date.
What to do: Verify citizenship or U.S. national status for every direct and indirect owner and guarantor, apply the 6-month ownership lookback, enter 100% of ownership in the SBA loan system, and certify that no owner or guarantor is an Ineligible Person.
Effective Mar 1, 2026Read the source - Rule
Federal Register notification: 7(a) Alternative Base Rate Options (91 FR 5805)
SBA published in the Federal Register, under 13 CFR 120.214(c), the alternative base rate options (SOFR, 5-year and 10-year Treasury note rates) for variable-rate 7(a) loans, effective March 1, 2026, also available to 7(a) pilot programs unless expressly prohibited.
What to do: Use only the base rates authorized by 13 CFR 120.214 and this notice for variable-rate 7(a) loans.
Effective Mar 1, 2026Read the source - Procedural notice
7(a) alternative base rate options (Procedural Notice 5000-875051)
Variable-rate 7(a) loans may use SOFR, the 5-year Treasury note rate or the 10-year Treasury note rate as an alternative base rate, in addition to Prime and the SBA Optional Peg Rate. The all-in rate on an alternative base rate is capped at Prime plus the spread allowed for the loan size. Loans using an alternative base rate cannot be sold on the secondary market for now.
What to do: If you offer SOFR or Treasury-indexed 7(a) loans, state the alternative base rate, publication source, spread, first adjustment date and adjustment frequency in the note, check the rate against the Prime-based cap at each adjustment, and keep these loans out of secondary market sales.
Effective Mar 1, 2026Read the source - Policy notice
Policy Notice 5000-876441: U.S. citizen or national ownership required; Procedural Notice 5000-872050 rescinded
SBA required that 100% of direct and indirect owners be U.S. citizens or U.S. nationals with a principal residence in the United States, ended the exception allowing up to 5% ownership by foreign nationals or non-resident owners, and made lawful permanent residents ineligible to own any interest in an applicant, operating company or eligible passive company.
What to do: Screen ownership structures for LPR, foreign or non-resident owners before issuing a loan number, and require complete divestiture where an ineligible person holds any interest.
Effective Mar 1, 2026Read the source
January 2026
- Information notice
Advantage Illinois Q4 2025 newsletter: subsequent private financing survey
DCEO announced its survey on subsequent private financing, required for Illinois' annual SSBCI report to Treasury: lenders must report additional private credit extended in calendar year 2025 to borrowers that received SSBCI support. It also named John Taflan as Loan Program Manager.
What to do: Answer the subsequent private financing survey for every SSBCI-supported borrower and keep a record of later credit extended to them.
- Guide
Revised CalCAP Collateral Support manual
CPCFA published the Manual for CalCAP Collateral Support revised January 1, 2026. It states a 40% main cash pledge, a 10% additional pledge for SAC or SEDI borrowers, a $10 million maximum enrolled amount per borrower, and that quarterly reports are needed only for loans in default.
What to do: Use the January 2026 manual for requests, closing and claims, and confirm monthly statements are sent for each collateral support account.
Effective Jan 1, 2026Read the source - Statute
CPCFA renamed the Capital Programs and Climate Financing Authority
Under Assembly Bill 786 (2025-2026), the California Pollution Control Financing Authority was renamed the Capital Programs and Climate Financing Authority effective January 1, 2026. The acronym CPCFA and the CalCAP programs continue.
What to do: Update agency names in internal documents; collateral support accounts and enrolled loans are unaffected.
Effective Jan 1, 2026Read the source - Guide
Revised CalCAP for Small Business lender manual
CPCFA published the Manual for CalCAP for Small Business Program revised January 1, 2026, covering lender eligibility, enrollment forms and timeframes, SSBCI loan provisions, claims and reporting.
What to do: Replace earlier copies of the manual and check enrollment, claim and reporting procedures against the January 2026 version.
Effective Jan 1, 2026Read the source
December 2025
- Procedural notice
Citizenship and residency update allowing up to 5% foreign ownership (Procedural Notice 5000-872050, later rescinded)
For applications approved on and after January 1, 2026, SBA required owners and guarantors to be U.S. citizens, U.S. nationals or LPRs with a U.S. principal residence, with a narrow exception for up to 5% aggregate ownership by foreign nationals, non-resident citizens or conditional LPRs. It also defined ineligible persons to include citizens or residents of the People's Republic of China or Hong Kong and entities organized outside the United States. Policy Notice 5000-876441 rescinded this notice effective March 1, 2026.
What to do: Apply the stricter March 1, 2026 rule (100% U.S. citizen or national ownership) to current applications; this notice matters only for loans approved January 1 to February 28, 2026.
Effective Jan 1, 2026Read the source - Procedural notice
Temporary 5% foreign ownership exception (Procedural Notice 5000-872050), later rescinded
Allowed up to 5% ownership by foreign nationals or by citizens, nationals or lawful permanent residents living outside the United States for applications approved on or after January 1, 2026, and added People's Republic of China and Hong Kong residents and citizens to the Ineligible Person definition. Rescinded effective March 1, 2026 by Policy Notice 5000-876441.
What to do: Do not rely on the 5% exception for any application approved on or after March 1, 2026.
Effective Dec 19, 2025Read the source - Rule
USDA confirms the 2024 OneRD final rule as published
Rural Development confirmed the September 30, 2024 OneRD final rule (89 FR 79698) as published, effective November 29, 2024, and responded to the public comments it received.
What to do: Treat the 2024 rule text, as later corrected, as final. No separate action is needed.
Effective Nov 29, 2024Read the source - Rule
OneRD rule corrections: affiliate definition and agricultural production limits
A correcting rule redefined an affiliate as a person or entity closely attached or connected to another and adopted the SBA affiliation principles at 13 CFR 121.301(f) for eligibility. It restored the definition of commercially available and restated the B&I agricultural production rule: the production portion of a loan may not exceed 50% of the loan or $5 million, whichever is less, with exemptions for nurseries, forestry, mushrooms, hydroponics, animal boarding or training, commercial fishing, and algae and aquaculture.
What to do: Use the 13 CFR 121.301(f) affiliation principles when identifying affiliates for eligibility and global analysis, and check the agricultural production share of any loan against the 50% or $5 million limit.
Effective Dec 11, 2025Read the source
November 2025
- Information notice
SBLGP has obligated 77% of its SSBCI allocation
IBank reported that its SBFC and venture capital programs, together with CPCFA, had obligated 85% of previously disbursed SSBCI funds, and that the Small Business Loan Guarantee Program had obligated 77% of its allocation, qualifying the state to request the final tranche.
What to do: No action required; this confirms SSBCI guarantee funding remains available.
October 2025
- Information notice
Treasury sets December 31, 2027 deadline for final Capital Program disbursement requests
FAQs state that Treasury's authority to administer the Capital Program ends March 11, 2028, so jurisdictions must submit final disbursement requests by December 31, 2027. Treasury expects to terminate the second and third tranches of any jurisdiction that has not deployed at least 80% of its first tranche and requested its next disbursement within three years of its Allocation Agreement.
What to do: Ask the state administrator whether its later tranches have been received or are at risk. Programs in states that miss these deadlines may have less capital to commit.
- Information notice
Advantage Illinois Q3 2025 newsletter: Exhibit D and compliance holds
DCEO said Exhibit D must be included in project submission forms and that it will not process new applications from a lender with an outstanding compliance issue until it is resolved.
What to do: Include Exhibit D with every project submission and clear any open compliance items with DCEO before submitting new deals.
- Policy notice
CPCFA board approves the Loan Participation Program and initial terms
The CPCFA board adopted Resolution No. 25-02-04 establishing the Loan Participation Program within CalCAP with $150 million of SSBCI 2.0 funds. It set participation of up to 50% per loan, capped at $5 million, on loans up to $20 million, with separate terms for lines of credit, SBA 504 bridge loans and term loans and an NCUA rate ceiling.
What to do: California-headquartered depository banks interested in participating should contact Community Capital Alliance about the Master Loan Participation Agreement.
Effective Oct 21, 2025Read the source
September 2025
- Procedural notice
Revisions to SOP 50 10 8 for 7(a) and 504 (Procedural Notice 5000-872764)
SBA removed the same geographic area test from the New Business definition, excluded Working Capital Pilot and EWCP loans from being combined with other 7(a) loans for the 90-day upfront fee rule, allowed lenders to sell loans on the secondary market once a required lien is filed but before recordation (with denial of liability exposure if the lien is not perfected), dropped the independent business valuation requirement for ESOP loans in favor of the ESOP's ERISA valuation, and barred refinancing of a PLP lender's same institution debt under PLP authority for MARC loans.
What to do: Keep proof of lien filing and, when received, recordation in the file for every loan sold before recordation, and apply the revised 90-day fee aggregation rule.
Effective Sep 30, 2025Read the source - Procedural notice
Procedural Notice 5000-872764: 504 and 7(a) program updates to SOP 50 10 8
For 504 loans: CDCs must obtain the executed franchise agreement before closing and have closing counsel certify it; the construction contingency limit rose from 10% to 15% of construction costs; do-it-yourself construction may be supported by a single third-party construction management estimate instead of two bids; appraisals for non-arm's-length and change-of-ownership projects must support 100% of value; disbursement extensions go to SBA as a 327 action; and CDCs may reduce an approved debt-refinance amount for borrower payments made before closing without a 327 request. The New Business definition was also revised.
What to do: Budget construction contingencies up to 15%, collect executed franchise documents before closing, and document principal reductions on refinanced debt in the closing package.
Effective Sep 30, 2025Read the source - Policy notice
504 job creation and retention requirements raised (90 FR 47117)
For 504 loans approved on or after October 1, 2025, a project must create or retain one job per $95,000 guaranteed by SBA (was $90,000), or one per $150,000 for small manufacturers and energy public policy projects (was $140,000). CDC portfolios must average one job per $150,000 for projects under other economic development objectives, and may average up to $150,000 per job in Alaska, Hawaii, enterprise and empowerment zones, labor surplus areas and Opportunity Zones (was $100,000).
What to do: Use the $95,000 and $150,000 ratios when sizing debentures and reporting job opportunities, and recheck the CDC portfolio average.
Effective Oct 1, 2025Read the source - Information notice
SOP 50 57 4, 7(a) Loan Servicing and Liquidation, issued (Information Notice 5000-872353)
SOP 50 57 4 replaced SOP 50 57 3.1 for servicing and liquidation actions on or after November 1, 2025. It raised the personal property liquidation value threshold for certain actions from $5,000 to $10,000, reflects the closure of the Little Rock servicing center (7(a) loans are serviced from Fresno or the Herndon purchase center), clarifies payment of annual service fees, adds an SBA Uncollectible loan status, and requires new obligors to meet current SOP 50 10 citizenship requirements.
What to do: Update servicing procedures to SOP 50 57 4 and confirm that any new obligor added in an assumption or substitution meets the current citizenship and residency rules.
Effective Nov 1, 2025Read the source - Procedural notice
7(a) Manufacturers' Access to Revolving Credit (MARC) created (Procedural Notice 5000-870260)
SBA created MARC, a new 7(a) delivery method for manufacturers (NAICS 31-33), available from October 1, 2025. MARC loans may be term or revolving, are underwritten like Standard 7(a) loans and monitored like SBA Express lines; revolving lines need an annual review and convert to an amortizing term loan if the review is unsatisfactory. It is separate from Working Capital CAPLines and SBA Express, which remain in effect. MARC is now SOP 50 10 8.1, Section B, Chapter 3.
What to do: For manufacturing clients needing revolving credit, compare MARC with Working Capital CAPLines; MARC requires a lien on all business assets and a first lien on trading assets.
Effective Oct 1, 2025Read the source
August 2025
- Information notice
FY 2026 7(a) fees and 90-day rule clarification (Information Notice 5000-872051)
For loans approved October 1, 2025 through September 30, 2026 the annual service fee was 0.55% and upfront fees were 2%, 3% and 3.5%/3.75% by loan size, with a 0% upfront fee for loans of $950,000 or less to manufacturers (not MARC loans). Working Capital Pilot and EWCP loans were excluded from combining with other 7(a) loans for the upfront fee calculation.
What to do: Apply FY 2026 fees to loans approved in that fiscal year, including any later increases, which are priced under the rules in effect when the loan was first approved.
Effective Oct 1, 2025Read the source - Information notice
FY 2026 504 fees (Information Notice 5000-871532)
For 504 loans approved October 1, 2025 through September 30, 2026: upfront guaranty fee 0.50% and annual service fee 0.209%, both waived for manufacturers (NAICS 31-33); debt refinance without expansion loans paid 0.2115% annually.
What to do: Apply FY 2026 fees to loans approved October 1, 2025 to September 30, 2026.
Effective Aug 28, 2025Read the source
June 2025
- Form
Revised SBA Form 413, Personal Financial Statement (Information Notice 5000-868123)
SBA issued a revised Form 413 and now requires it to be current within 120 days of submission for 7(a) loans. SBA still accepts lender and regulator-equivalent formats that collect the same data. The prior version is accepted only for applications already in process; after 60 days SBA accepts only the renewed version.
What to do: Replace the old Form 413 in application packages, or confirm your equivalent form collects the same data, and date-check financial statements against the 120-day window.
Effective Jun 13, 2025Read the source
May 2025
- Information notice
SOP 50 10 8 with Technical Updates issued (Information Notice 5000-868665)
SOP 50 10 8 took effect for applications issued an SBA loan number on or after June 1, 2025, replacing SOP 50 10 7.1. The technical updates required lenders to check CAIVRS and keep proof in the file, enter 100% of direct and indirect owners in E-Tran, treat search-fund side agreements giving non-guarantor investors control as ineligible and redeemable equity as debt, allowed interest-only periods on term loans, raised the vehicle lien threshold to $20,000, set a fix for IRS no-record transcript responses, and required environmental reports to be dated within one year of the loan number.
What to do: Use SOP 50 10 8 for applications through September 30, 2026; for later applications use SOP 50 10 8.1.
Effective Jun 1, 2025Read the source - Information notice
SOP 50 10 8 reissued with technical updates (Information Notice 5000-868665)
Replaced the April 2025 text of SOP 50 10 8 before it took effect. Required that applicant businesses and entity owners be organized in the United States and that owners and guarantors live in the United States, required a CAIVRS check documented in the file, required entry of 100% of direct and indirect owners, and let CDCs rely on a regulated Third Party Lender's annual OFAC certification.
What to do: Run and file a CAIVRS check on every applicant and guarantor and keep the Third Party Lender's annual OFAC certification on file.
Effective Jun 1, 2025Read the source - Policy notice
Community Advantage SBLC participation rules (Policy Notice 5000-868068)
SBA set requirements for Community Advantage SBLCs: a $350,000 maximum loan amount, at least 60% of loans in underserved markets, loan loss reserves, minimum capital of $375,000 from May 15, 2025 and $750,000 from May 15, 2026 (or 10% of their share of outstanding loans if greater), and at least four 7(a) approvals over two consecutive fiscal years. CA SBLCs apply 7(a) Small requirements.
What to do: CA SBLCs should confirm capital levels and keep each loan at or below $350,000.
Effective May 5, 2025Read the source
April 2025
- Rule
Permanent regulation for alternative funding sources (loan participation)
The Office of Administrative Law approved CPCFA's certificate of compliance making Title 4 CCR Section 8078.36 permanent. The section lets CPCFA deploy external funds, including SSBCI funds for a loan participation project, under terms adopted by board resolution and with a third-party administrator.
What to do: No action required; program terms are set by the board resolution.
- SOP
SOP 50 10 8 takes effect, replacing SOP 50 10 7.1
SOP 50 10 8 applied to applications issued an SBA loan number from June 1, 2025. Compared with SOP 50 10 7.1 it lowered the 7(a) Small ceiling from $500,000 to $350,000, so Standard 7(a) now covers loans above $350,000.
What to do: Size-test each request against the $350,000 line between 7(a) Small and Standard 7(a), and apply Standard 7(a) underwriting to every term loan above $350,000.
Effective Jun 1, 2025Read the source - Information notice
SOP 50 10 8 announced (Information Notice 5000-866746)
SBA announced SOP 50 10 8, which largely restored pre-2021 7(a) underwriting criteria, reinstated the SBA Franchise Directory, and required lenders with delegated authority to send exception-to-policy requests to 7aDelegatedLoanApps@sba.gov and to process all loans under delegated authority except refinancing of their own institution's debt. It also raised the minimum SBSS score for 7(a) Small loans from 155 to 165 (the SBSS score was later sunset on March 1, 2026).
What to do: Check franchise brands against the SBA Franchise Directory and route exception-to-policy requests and same institution debt refinancings as the notice requires.
Effective Jun 1, 2025Read the source - Information notice
SOP 50 10 8 issued (Information Notice 5000-866746)
SOP 50 10 8 applied to 504 applications issued an SBA loan number on or after June 1, 2025. It largely restored requirements in place before January 2021, reinstated the SBA Franchise Directory, and confirmed that SBA lenders, including CDCs, determine applicant eligibility.
What to do: Check franchise brands against the SBA Franchise Directory and follow the restored eligibility and credit standards.
Effective Jun 1, 2025Read the source
March 2025
- Information notice
SBA Form 1244 revised (Information Notice 5000-865664)
SBA revised SBA Form 1244, SBA 504 Borrower Information Form (dated February 2025). The purpose-of-loan section now has a single 'Debt refinancing with or without expansion' category and an 'Other' option, the signature block for Associates was removed, and the sex field now offers only male or female. CDCs had a 30-day grace period to switch.
What to do: Use the February 2025 version of SBA Form 1244 for all 504 applications.
Effective Mar 28, 2025Read the source - Procedural notice
Owner date of birth required in E-Tran (Procedural Notice 5000-866498)
From March 27, 2025 lenders must enter the date of birth of every owner of the applicant entered in E-Tran, collecting it as part of the application until SBA forms are updated.
What to do: Add owner date of birth to intake checklists and E-Tran entry.
Effective Mar 27, 2025Read the source - Information notice
FY 2025 7(a) fee relief ended (Information Notice 5000-865775)
SBA ended FY 2025 fee relief for delegated loans approved from March 27, 2025: the upfront fee returned to 2%, 3% and 3.5%/3.75% by loan size and the annual service fee became 0.55% for all loans. Non-delegated applications in R1 status by 11:59 PM Eastern on March 26, 2025 kept the earlier relief.
What to do: Confirm which fee schedule applies to loans approved in FY 2025 when calculating fees on later increases.
Effective Mar 27, 2025Read the source - Procedural notice
Environmental review procedures for non-delegated loans (Procedural Notice 5000-866054)
SBA changed environmental procedures for non-delegated 7(a) loans (other than 7(a) Small) and 504 loans: when the report shows no contamination, the lender certifies compliance in E-Tran and keeps the reports. Environmental reports for all loans, including delegated loans, must be dated within one year of issuance of the SBA loan number.
What to do: Order or update environmental reports so they are dated within one year of the SBA loan number.
Effective Mar 20, 2025Read the source - Form
SBA Form 1919 revised (Information Notice 5000-865585)
SBA revised Form 1919 to replace gender with sex in the voluntary demographic section and to remove the Not Disclosed option. The revised form is dated February 2025 and a 30-day grace period applied.
What to do: Use the February 2025 (or later) version of SBA Form 1919 and attach the citizenship certifications SBA has required since March 2026 until a newer form is issued.
Effective Mar 19, 2025Read the source - Policy notice
Policy Notice 5000-865754: citizenship requirements under Executive Order 14159
SBA barred businesses owned in whole or part by ineligible persons (including foreign nationals, asylees, refugees, visa holders and DACA recipients) and required lenders to enter at least 81% of beneficial owners in E-Tran and certify that no beneficial owner is ineligible. This was superseded by SOP 50 10 8 and later notices that now require 100% U.S. citizen or national ownership.
What to do: No separate action now; follow the current citizenship and residency rules in SOP 50 10 8.1.
Effective Mar 7, 2025Read the source - Policy notice
Citizenship requirements under Executive Order 14159 (Policy Notice 5000-865754)
Required 100% ownership by U.S. citizens, U.S. nationals or lawful permanent residents, barred ownership by undocumented aliens and other ineligible persons, and required lenders to certify in E-Tran that no beneficial owner is ineligible. Later superseded by SOP 50 10 8 and the 2026 notices that removed lawful permanent residents.
What to do: Superseded; follow Procedural Notice 5000-876626 for current ownership rules.
Effective Mar 7, 2025Read the source
February 2025
- Rule
Permanent rules for selling CalCAP-enrolled loans
The Office of Administrative Law approved CPCFA's certificate of compliance making permanent the emergency amendments to Title 4 CCR Sections 8073 and 8074, which set the process for CalCAP lenders to sell enrolled loans to lenders inside and outside the program. A loan sold without advance written approval is no longer covered by the reserve.
What to do: Before selling, assigning or pledging an enrolled loan, send CalCAP a written request at least 30 calendar days in advance with the loan list and draft transfer documents, and report sales on the quarterly report.
January 2025
- Program page
Michigan announces second round of SSBCI 2.0 funds
Governor Whitmer announced the second round of Michigan's SSBCI 2.0 funds, making $79,383,856 available for MEDC's small business capital programs. MEDC reported 636 loans totaling $72 million supported in the first round.
What to do: Funding for new MEDC credit support is available; lenders with eligible deals can send them to MEDC Capital Access at businessloans@michigan.org.
- Program page
Florida receives its second SSBCI tranche of $167 million
FloridaCommerce announced that it received the second of three Treasury tranches, $167 million, making it available for Florida's SSBCI capital programs. The first tranche of $142 million was received in December 2022 out of a $488 million total allocation.
What to do: Program capacity was replenished. Lenders with deals in the pipeline can contact FloridaCommerce at SSBCI@commerce.fl.gov to enroll or confirm funding for a transaction.
December 2024
- Rule
ALP Express made permanent (89 FR 102697)
Made permanent the ALP Express authority, first offered as a pilot, that lets Accredited Lenders Program CDCs underwrite, approve, close and service 504 loans of $500,000 or less. A PCLP CDC may process such a loan as an ALP Express Loan instead, in which case Loan Loss Reserve Fund requirements do not apply to that loan.
What to do: ALP CDCs can keep designating eligible loans of $500,000 or less as ALP Express on SBA Form 1244.
Effective Jan 17, 2025Read the source - Information notice
$203.5 million second SSBCI tranche received for CalCAP
The State Treasurer announced that CalCAP received $203.5 million from the second SSBCI 2.0 tranche, describing CalCAP's cash pledges to cover collateral shortfalls.
What to do: No action required.
- Guide
Capital Program Reporting Guidance revised
Treasury revised the transaction-level reporting jurisdictions submit. It added CAP borrower and lender insurance premium fields and an interest rate at the time of obligation field, renamed total origination charges as upfront fees and charges, moved to 2022 NAICS codes, removed refinancing of outstanding debt as a primary purpose option, and simplified principal owner demographic fields.
What to do: Be ready to give the state administrator the premiums, interest rate at obligation, upfront fees, loan purpose and 2022 NAICS code for each enrolled loan.
Effective Dec 17, 2024Read the source - Rule
Technical corrections to the 2024 OneRD final rule
Rural Development corrected the September 30, 2024 final rule: an incomplete affiliate definition, an instruction that did not belong in the final rule, a misspelled heading, and a misstatement about protective advances.
What to do: Use the corrected eCFR text for the affiliate definition and protective advances (7 CFR 5001.516).
Effective Dec 9, 2024Read the source - Procedural notice
Procedural updates to SOP 50 10 7.1 (Procedural Notice 5000-862692)
Under SOP 50 10 7.1, SBA extended prior procedural notices, permitted 7(a) and 504 loans alongside C-PACE financing, eased seller tax transcript verification for changes of ownership of $500,000 or less, dropped non-owner spouse financial statement requirements, and allowed blended or up to 25-year maturities for partial changes of ownership. SOP 50 10 8 superseded these provisions on June 1, 2025.
What to do: Applies only to loans processed under SOP 50 10 7.1; use SOP 50 10 8.1 for current applications.
Effective Dec 6, 2024Read the source - Procedural notice
Procedural Notice 5000-862692: updates to SOP 50 10 7.1 and SOP 50 55
Confirmed that 504 loans may be combined with C-PACE financing, treated as a separate project rather than a Third Party Loan. Required a CDC to give an existing 7(a) or 504 lender at least 10 business days' written notice before refinancing its loan, required an appraisal when a project includes a change of ownership, and allowed alternative third-party verification of seller revenue on change-of-ownership projects over $500,000 when IRS verification is unavailable.
What to do: Send the 10-business-day refinancing notice to the existing SBA lender and include it in the submission; order appraisals for every change-of-ownership project.
Effective Dec 6, 2024Read the source
October 2024
- Information notice
New simplified TSBCI application process for lenders
The Governor's office announced a new, simplified application process for financial institutions joining TSBCI through the TSBCI portal and published an updated list of approved participating lenders.
What to do: Lenders not yet enrolled can apply through the TSBCI portal using the simplified process.
- Rule
504 Debt Refinancing direct final rule (89 FR 79734)
Removed the 50% cap on 504 debt refinancing without expansion, raised the loan-to-value limit for refinancing projects that include other business expenses to 90% and removed the cap on Eligible Business Expenses, set the 'substantially all' test for refinancing with expansion at 75% to match refinancing without expansion, removed the 10% substantial benefit test when refinancing other government-guaranteed debt, and allowed certain other secured debt to count as an Eligible Business Expense.
What to do: Size 504 refinancing projects to the 90% loan-to-value limit, apply the 75% fixed-asset test to both refinance options, and use the installment-reduction test (not a 10% reduction) when refinancing government-guaranteed debt.
Effective Nov 15, 2024Read the source
September 2024
- Rule
OneRD Guarantee Loan final rule revises 7 CFR part 5001
A final rule with comment revised the OneRD regulation for B&I and the other three programs. For B&I it clarified the capital and equity rules, including the closing balance sheet and the owner-contributed capital calculation; said applications cannot be approved subject to later meeting rural area requirements; clarified eligibility of leasehold improvements and independent living facilities; and said tax returns are not acceptable financial statements for underwriting. It also revised refinancing, lender eligibility, origination and servicing provisions.
What to do: Update B&I underwriting templates to the current 7 CFR part 5001 text. Confirm rural eligibility before applying, use prepared financial statements rather than tax returns, and document capital and equity with a closing balance sheet.
Effective Nov 29, 2024Read the source
Last reviewed Nov 13, 2026. A summary of official sources, linked beside each fact, kept current by Kita each week. Program rules change: confirm against the current source before you rely on a figure. Not legal advice. Spotted something out of date? Email hello@kita.ai.
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