# What changed in SBA refinancing rules on October 1, 2026?

**Short answer:** SOP 50 10 8.1 let some merchant cash advances be refinanced and allowed Preferred Lender Program (PLP) processing of non-SBA same-institution debt. It also lengthened the seller note waiting period. Factoring stays ineligible (App. 14, compared with SOP 50 10 8).

Canonical page: https://www.sbaexpress.loans/answers/what-changed-in-sba-refinancing-rules-on-october-1-2026/
Last checked: 2026-11-08

SOP 50 10 8.1 took effect October 1, 2026, for applications SBA receives on or after that date (SBA Information Notice 5000-882227). It moved 7(a) refinancing into Appendix 14 and changed several rules.

## Changes we found by comparing the two SOPs

- **Merchant cash advances.** SOP 50 10 8 barred them. Appendix 14, Paragraph A.3 now allows a refinance after conversion to a term loan and a set amortization period.
- **Same-institution debt.** SOP 50 10 8 required non-delegated processing. Non-SBA same-institution debt may now go through PLP.
- **A lender's own 7(a) loan.** SOP 50 10 8 required non-delegated processing. Delegated processing is now allowed in the same two cases (App. 14, Para. A.4.f).
- **Seller notes.** The old waiting period was 24 months. Now a note can be refinanced after it has been in place and current for 36 months.
- **Payment test.** The text now says the new payment is measured against existing installments "in aggregate."
- **Written analysis.** The old list asked why the debt was not on reasonable terms. The new list drops that item.

## What did not change

Factoring stays ineligible. The look-back for current payments and the 29-day definition are the same. Debts to an Small Business Investment Company (SBIC) or New Markets Venture Capital Company still cannot be refinanced.

## Applications in the pipeline

Applications submitted through September 30, 2026 stay under SOP 50 10 8. This comparison is ours, not SBA's. Read both documents before relying on it for a specific loan.

## Sources

- [SBA Information Notice 5000-882227, p. 1 (September 25, 2026)](https://legacy.sba.gov/document/information-notice-5000-882227-issuance-technical-updates-sop-50-10-81)
- [SOP 50 10 8.1, App. 14, Para. A, General Requirements (p. 355)](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 (Technical Updates, effective June 1, 2025), Debt Refinancing](https://legacy.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx)
- [SBA Information Notice 5000-880695, p. 1 (August 14, 2026)](https://legacy.sba.gov/document/information-notice-5000-880695-issuance-sop-50-10-81)