What is SOP 50 10 8.1?

It is the SBA's rulebook for 7(a) and 504 loans, titled Lender and Development Company Loan Programs. It is effective October 1, 2026, replaces SOP 50 10 8.0, and puts all 7(a) change of ownership rules in Appendix 15.

Does SOP 50 10 8.1 apply if I applied in September?

The SBA's September 25 notice says 8.1 applies to applications the SBA receives on or after October 1, 2026. Lenders use SOP 50 10 8 for applications submitted through September 30. Ask your lender which version it applied.

What debt service coverage does the SBA require to buy a business?

Appendix 15 sets 1.25x for an Initial Acquisition, an Owner Buyout, or an ESOP or cooperative deal. A Business Expansion needs 1.15x. It is measured on the last fiscal year or the two-year average, not on projections.

When does an SBA loan need a quality of earnings report?

When an Initial Acquisition or Business Expansion has a Business Purchase Price of $3 million or more, not counting owner-occupied real estate. Owner Buyouts, ESOP and cooperative deals, and owner-occupied special purpose property deals do not need one.

How long can the seller stay after an SBA-financed sale?

In an Initial Acquisition or Business Expansion, only as a consultant, for up to 24 months including extensions. When an owner sells only part of their stake, they may stay as an owner, officer or employee.

BACK TO BLOG

CFO SERVICES

New SBA Loan Rules Start October 1 for Business Buyers

SOP 50 10 8.1 applies from October 1. New SBA buyers face a 1.25x cash flow test, a quality of earnings report at $3 million and 10-year amortization.

SMAART Company

October 1, 2026

11 min read

Book a Free Call

New SBA Loan Rules Start October 1 for Business Buyers

Discussion

Comments

Continue Reading

The SBA Just Doubled Its Combined Loan Limit to $10 Million: What It Means for Your Growth Plans

CFO Services

New SBA Loan Rules Start October 1 for Business Buyers

Discussion

Comments

Leave a comment

Related Articles

Continue Reading

The SBA Just Doubled Its Combined Loan Limit to $10 Million: What It Means for Your Growth Plans

Hurricane Season Financial Readiness for Florida Small Businesses

World Cup 2026 Is Coming to Miami: Is Your Business Financially Ready?