# Which change of ownership rules does SBA Express relax?

**Short answer:** Only two. The lender may do its own valuation when the Business Purchase Price is $350,000 or less. The fully secured test excludes other commercial real estate. Source: SOP 50 10 8.1, Sec. B, Ch. 2, Para. A.2.

Canonical page: https://www.sbaexpress.loans/answers/sba-express-change-of-ownership-rule-differences/
Last checked: 2026-11-08

Only two rules, and both are narrow. Section B, Ch. 2, Para. A.2, of SOP 50 10 8.1 applies Appendix 15 to SBA Express deals, with these differences:

- Valuation: the lender may do an internal valuation when the Business Purchase Price is $350,000 or less. Appendix 15 removes that option if buyer and seller have a close relationship.
- Collateral: the fully secured test applies, but the lender need not count other commercial real estate held by the borrower or guarantors.

## What Express does not relax

- Debt service coverage follows Appendix 15. No reduced ratio applies because the loan is Express.
- Equity follows Appendix 15, not the lender discretion that applies to other Express loans.
- The other Appendix 15 rules still apply, including seller exit and documentation.

## Limits on the loan itself

The Express maximum is $500,000, and only a lender with SBA Express authority can make one. It must be a term loan. Section A, Ch. 2, Para. A says change of ownership is not an eligible use for revolving facilities.

SBA's guaranty on an Express loan is 50% (Appendix 16, Para. B.2). The lender keeps more of the risk than on other 7(a) loans. Willingness to make these loans varies by lender.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. A.2 (p. 125)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 15, Para. C.3.d (about p. 385)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 2, Para. A (p. 41)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 16, Para. B.2 (about p. 388)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Information Notice 5000-882227, p. 2 (Sept. 25, 2026)](https://legacy.sba.gov/document/information-notice-5000-882227-issuance-technical-updates-sop-50-10-81)