SBA Lending Changes Are Coming October 1: What You Need to Know

On August 14, the Small Business Administration (SBA) announced the issuance of SOP 50 10 8.1, an updated version of the Standard Operating Procedures governing the SBA 7(a) and 504 loan programs. The updated SOP will take effect on October 1, 2026.

With that effective date approaching quickly, anyone with an SBA-financed transaction already in process should be aware of the upcoming change.

What Is Changing?

SOP 50 10 8.1 builds on the lending criteria established under SOP 50 10 8.0 and includes updates in several areas, including:

• Change of ownership lending
• SBA Express loans
• Same-institution debt refinancing
• Previously issued SBA Policy and Procedural Notices that have now been incorporated into the SOP

We are continuing to review the updated SOP with our lending partners and expect to have more to share as lenders work through the changes and prepare for implementation.

Which SOP Will Apply?

According to the SBA's Information Notice, SOP 50 10 8.1 will apply to applications issued an SBA loan number on or after October 1, 2026. SBA lenders and employees will continue to use SOP 50 10 8.0 for applications submitted through September 30, 2026.

That makes September an important month for transactions that are already under contract or moving into underwriting.

If you have an accepted offer that includes SBA financing, we encourage you to reach out to our team at True North Business Funding or your lender to discuss where the application stands and whether an SBA loan number can be issued before September 30.

This does not mean that every transaction needs to receive an SBA loan number before the new SOP takes effect, or that the updated SOP will negatively affect every transaction. With a significant update approaching, however, it’s important to understand which version of the SOP is expected to apply to your transaction and plan accordingly.

Planning Ahead

If you have an SBA-financed acquisition underway, now is a good time to talk with your lender rather than waiting until the end of September. If True North Business Funding is already assisting with your financing, please reach out to our team so we can review the status of your transaction and coordinate next steps with the lender.

If you are considering an acquisition or have an accepted offer, but have not yet started the financing process, we would also encourage you to connect with us as soon as possible. Our team can help evaluate financing options, facilitate lender introductions, and assist with moving the financing process forward.

True North Business Funding will continue reviewing SOP 50 10 8.1 with our lending partners. As we develop a better understanding of the changes and how lenders will implement them, we'll share additional information.

In the meantime, if you're working through an acquisition and have questions about the SBA financing process, please reach out to the True North Business Funding team to learn more.