SBA Express Loans: what changed in SBA lending rules

SBA updates Form 1506, the 504 servicing agent agreement

2026-10-01T12:00:00Z

SBA released a revised Form 1506 to conform with Executive Order 14247 on electronic payments. The Third Party Lender fee must now be withheld from the CDC's processing fee. Monthly payments run by ACH debit, or by wire if ACH is unavailable, and checks are not accepted. CDCs had a 30-day grace period to start using the new form.

Who it affects. CDCs, Third Party Lenders, and you if you are closing a 504 loan and signing the Servicing Agent Agreement.

Effective. October 1, 2026. Source: Information Notice 5000-881291.

Pages on this site it affects. 504 loan answers

SBA removes disparate-impact provisions from its Title VI rules

2026-09-29T12:00:00Z

SBA rescinded parts of 13 CFR Part 112, its Title VI civil rights rules. The removed text authorized affirmative action based on race, color or national origin. It also covered employment practices where providing jobs was not a primary aim of the assistance. SBA says the rules now prohibit only intentional discrimination and that it will not pursue disparate-impact liability against recipients of SBA financial assistance.

Who it affects. Organizations that receive SBA financial assistance under 13 CFR Part 112. The rule concerns civil rights compliance, not loan terms.

Effective. September 29, 2026. Source: Final Rule 91 FR 61295.

SBA issues technical updates to SOP 50 10 8.1 before it takes effect

2026-09-25T12:00:00Z

SBA replaced the August 2026 version of SOP 50 10 8.1 with an updated version. It applies to applications SBA receives on or after October 1, 2026. When trusts own 20% or more of an applicant, each trust must give an unlimited full guaranty. The trustor must also guarantee personally. Lenders may do internal valuations on 7(a) Small and SBA Express changes of ownership when the purchase price is $350,000 or less. Appendix 15's debt service coverage minimums still apply to those loans. Working-capital true-ups are not seller rebates. A special purpose property bought with its business may use one loan with a term up to 25 years. That applies when the property's value depends on the business. An existing Quality of Earnings report can be reused with a reliance letter or a different firm's review. A 504 Third Party Lender loan may now amortize longer than the debenture. The annual field examination applies to Working Capital CAPLines of $1,000,000 or more.

Who it affects. 7(a) lenders, CDCs and Third Party Lenders. You if you are buying a business, hold shares through a trust, or use a Working Capital CAPLine.

Effective. October 1, 2026. Source: Information Notice 5000-882227.

Pages on this site it affects. Buying a business answers, Personal guarantee answers, SBA Express answers, 504 loan answers, CAPLines and export answers, How to finance buying an existing business

SBA sets fiscal year 2027 7(a) fees and changes the fee waiver

2026-09-03T12:00:00Z

SBA set the upfront fee at 0% for fiscal 2027 7(a) loans of $700,000 or less to three groups. They are manufacturers (NAICS 31-33), listed food supply chain businesses and businesses in rural areas. Fiscal 2027 covers loans approved October 1, 2026 through September 30, 2027. Last year's waiver covered manufacturers only, on loans of $950,000 or less. Other upfront fees on the guaranteed portion are 2% at $150,000 or less and 3% from $150,001 to $700,000. Larger loans pay 3.5% up to $1,000,000 plus 3.75% above that, and loans of 12 months or less pay 0.25%. The annual service fee is 0.55% of the guaranteed balance, and lenders may not pass it to borrowers. SBA Express loans to veteran-owned businesses keep a $0 upfront fee.

Who it affects. You if you are a 7(a) borrower, especially a manufacturer, listed food supply chain business, rural business or veteran-owned business using SBA Express. Also 7(a) lenders.

Effective. October 1, 2026. Source: Information Notice 5000-881797.

Pages on this site it affects. Rates and fees answers, SBA Express loan terms, Guaranty fee calculator, Veterans answers, Rural business financing

SBA sets fiscal year 2027 504 fees and waives them for three groups

2026-09-03T12:00:00Z

SBA waived the upfront and annual service fees on fiscal 2027 504 loans for three groups. They are manufacturers (NAICS 31-33), listed food supply chain businesses and businesses in rural areas, including 504 debt refinance loans. Fiscal 2027 covers loans approved October 1, 2026 through September 30, 2027. Other 504 loans pay an upfront fee of 0.50% and an annual service fee of 0.203% of the outstanding balance. Loans under the 504 Debt Refinance without Expansion program pay an annual service fee of 0.204%. Last year's waiver covered manufacturers only.

Who it affects. You if you are a 504 borrower, especially a manufacturer, listed food supply chain business or rural business. Also CDCs.

Effective. October 1, 2026. Source: Information Notice 5000-881796.

Pages on this site it affects. 504 loan answers, Rates and fees answers, Rural business financing

SBA drops its blanket commitment to public comment on loan rules

2026-08-31T12:00:00Z

SBA rescinded 13 CFR 101.108, which made it follow notice-and-comment rulemaking on loans, grants and contracts even when the law did not require it. SBA now follows the Administrative Procedure Act's default rules and says it may still seek comment case by case. SBA may change loan program rules without a comment period where the Act's exemption applies.

Who it affects. 7(a) lenders, CDCs, trade groups, and you if you follow or comment on SBA rulemaking.

Effective. August 31, 2026. Source: Final Rule 91 FR 55737.

SBA publishes SOP 50 10 8.1, effective October 1, 2026

2026-08-14T12:00:00Z

SOP 50 10 8.1 takes effect October 1, 2026 and replaces SOP 50 10 8. It folds in the citizenship, SBSS, International Trade, alternative base rate, MARC and 7(a)/504 limit notices issued since June 2025. Changes of ownership now follow a new Appendix 15. Initial acquisitions need debt service coverage of 1.25:1, above the prior 1.15:1 Standard 7(a) minimum. They also need 10% equity that cannot be reduced. Initial acquisitions and business expansions at a $3,000,000 purchase price or more need a Quality of Earnings report. Seller debt counts as equity only on full standby and can supply at most half of required equity. Seller notes can be refinanced after 36 months, up from 24. A seller may stay as a consultant for up to 24 months, up from 12. A lender can issue a new SBA Express loan before amortization starts. The new loan can restart the revolving period or extend repayment up to 10 years. Non-SBA debt at the lender's own institution may now be refinanced under PLP delegated authority. Merchant cash advances can be refinanced only after conversion to a term loan amortized for at least 24 months. Factoring remains ineligible. The 504 minimum debt service coverage rose to 1.15:1 from 1:1. MARC loans must now revolve and opened to wholesalers and food supply chain businesses at up to $2,000,000. New text bars businesses where a minor child owns 20% or more and bars agents located outside the United States. Information Notice 5000-880695 announced the SOP.

Who it affects. You if you are applying for a 7(a) or 504 loan. That especially means buying a business, keeping an SBA Express line or refinancing a merchant cash advance. Also 7(a) lenders and CDCs.

Effective. October 1, 2026. Source: SOP 50 10 8.1.

Pages on this site it affects. Buying a business answers, Equity injection answers, SBA Express answers, Refinancing answers, 504 loan answers, How to finance buying an existing business, Seller financing, Getting out of a merchant cash advance, SBA Express loan requirements

International Trade loans extended to mining and oil and gas businesses

2026-08-14T12:00:00Z

SBA added mining, quarrying and oil and gas extraction businesses to the industries it has found are hurt by import competition. They are NAICS sector 21, subsectors 211, 212 and 213. These businesses no longer need separate proof of injury to qualify under the import-competition test for an International Trade loan.

Who it affects. You if you run a small mining, quarrying or oil and gas business. Also 7(a) lenders offering International Trade loans.

Effective. August 14, 2026. Source: Policy Notice 5000-881477.

Pages on this site it affects. CAPLines and export answers, Export financing for small businesses

SBA allows waivers of the prior loss rule for minority investors

2026-05-28T12:00:00Z

SBA may now waive the prior loss rule case by case. The waiver is for an owner whose only tie to a defaulted SBA loan was a small passive stake. The owner must have held less than 20% of the business with the loss, not been a guarantor or co-borrower, and had no control. The waiver covers losses on 7(a) and 504 loans only, not PPP, COVID EIDL or other federal debt. Applicants with delinquent non-tax federal debt remain ineligible.

Who it affects. You if an owner of your business held a small passive stake in a business that defaulted on an SBA loan. Also lenders and CDCs.

Effective. June 1, 2026. Source: Policy Notice 5000-879464.

Pages on this site it affects. Eligibility answers

SBA clarifies that 7(a) and 504 loan limits work separately

2026-05-18T12:00:00Z

A borrower's 7(a) balance, up to the 7(a) maximum, does not reduce the 504 program limit. A business can use both programs in sequence. SBA restated the 504 limit of $5,000,000 per business and affiliates. The limit is $5,500,000 per project for small manufacturers and eligible energy projects, with a $16,500,000 aggregate cap on energy projects. A 504 Project may also include several eligible assets financed at the same time.

Who it affects. You if you are combining 7(a) and 504 financing, or buying a facility and equipment together. Also 7(a) lenders and CDCs.

Effective. July 4, 2026. Source: Policy Notice 5000-879058.

Pages on this site it affects. 504 loan answers, Use of proceeds answers, Compare SBA loans

SBA lowers fiscal 2026 oversight fees for 7(a) lenders

2026-04-14T12:00:00Z

SBA set its fiscal 2026 annual oversight fee at $128.19 per $1 million of outstanding 7(a) guaranty for all lenders. That is down from $131.60 for SBA-supervised lenders and $136.48 for federally regulated lenders. Delegated lenders pay $144.64 in total, down from $148.74 and $153.62.

Who it affects. 7(a) lenders, who are billed for these fees.

Effective. April 14, 2026. Source: Information Notice 5000-878182.

SBA opens International Trade loans to import-affected manufacturers and food businesses

2026-04-02T12:00:00Z

SBA found that manufacturers (NAICS 31-33) and listed food supply chain businesses are hurt by import competition. They no longer need separate proof of injury to qualify for an International Trade loan with its 90% guaranty. The notice also sets which changes of ownership qualify under the import-competition test. Proceeds can fund facilities, equipment and up to $2,000,000 of working capital.

Who it affects. You if you are a small manufacturer or food supply chain business facing import competition. Also 7(a) lenders.

Effective. May 1, 2026. Source: Policy Notice 5000-877629.

Pages on this site it affects. CAPLines and export answers, Export financing for small businesses

SBA answers lender questions on the citizenship rule and SBSS sunset

2026-03-31T12:00:00Z

SBA clarified its March 2026 citizenship and underwriting changes in 11 questions and answers. An Ineligible Person may divest ownership before the SBA loan number is issued. A non-owner may still give a supplemental or limited guaranty unless in the U.S. illegally. Loans approved before March 1, 2026 can keep being serviced, but they cannot be increased if an owner is ineligible. Lenders may underwrite a loan of $350,000 or less under Standard 7(a) rules instead of 7(a) Small rules. On 7(a) Small loans, two months of bank activity or statements must confirm debts such as merchant cash advances.

Who it affects. You if your business has a non-citizen owner or guarantor, or you are applying for a 7(a) Small loan. Also 7(a) lenders and CDCs.

Effective. March 1, 2026. Source: Information Notice 5000-877673.

Pages on this site it affects. Eligibility answers, Personal guarantee answers, Business credit scores

SBA extends the owner date-of-birth requirement

2026-03-18T12:00:00Z

SBA extended its temporary rule that lenders must enter the date of birth of every owner they list in SBA's E-Tran system. The rule stays in place until the 7(a) and 504 application process is updated.

Who it affects. 7(a) lenders and CDCs, and you if you are an owner listed on an application.

Effective. March 18, 2026. Source: Procedural Notice 5000-877472.

Pages on this site it affects. Documents and forms answers, Loan application checklist

SBA sets the underwriting rules that replace the SBSS score

2026-02-20T12:00:00Z

For 7(a) Small loans approved on or after March 1, 2026, lenders must use their normal credit analysis instead of the SBSS score. Debt service coverage must be at least 1.10:1 on a historical or projected basis. Lenders must also review two months of commercial bank activity to confirm debts and obligations. A loan that misses the coverage test must go through Standard 7(a) or SBA Express procedures. This notice replaced the changes in Procedural Notice 5000-875701. SBA Express underwriting did not change.

Who it affects. You if you are applying for a 7(a) Small loan of $350,000 or less. Also 7(a) lenders.

Effective. March 1, 2026. Source: Procedural Notice 5000-876777.

Pages on this site it affects. Applying and closing answers, Business credit scores, Debt service coverage explained

SBA issues procedures for its 100% citizen ownership requirement

2026-02-11T12:00:00Z

For 7(a) and 504 loans, all direct and indirect owners and required guarantors must be U.S. citizens or U.S. nationals. Their principal residence must be in the United States, its territories or possessions. Lawful permanent residents, people granted asylum or refugee status, visa holders and citizens of China or Hong Kong are Ineligible Persons. A business is ineligible if an Ineligible Person held ownership in the six months before the SBA loan number. The exception is when that person fully divests before the number is issued. Entities in the ownership chain must be organized in the United States, its territories or possessions. Lenders must collect new applicant certifications until Forms 1919 and 1244 are updated. The rules apply to delegated loans approved and non-delegated applications entering review on or after March 1, 2026.

Who it affects. You if your business has an owner or guarantor who is not a U.S. citizen or national, or who lives abroad. Also lenders and CDCs, which must certify ownership.

Effective. March 1, 2026. Source: Procedural Notice 5000-876626.

Pages on this site it affects. Eligibility answers, Personal guarantee answers, Documents and forms answers, SBA Form 1919, SBA Express loan requirements

SBA adds SOFR and Treasury rates as 7(a) base rate options

2026-02-06T12:00:00Z

SBA added three alternative base rates for variable-rate 7(a) loans: SOFR, the 5-year Treasury Note rate and the 10-year Treasury Note rate. The change was also published at 91 FR 5805. The all-in rate is still capped at Prime plus the allowed spread for the loan size. Loans using an alternative base rate cannot be sold on the secondary market for now. SBA also removed the 3-percentage-point SOFR add-on in the Working Capital Pilot guide.

Who it affects. You if you are choosing a variable rate on a 7(a) loan. Also 7(a) lenders.

Effective. March 1, 2026. Source: Procedural Notice 5000-875051.

Pages on this site it affects. SBA loan rates today, Rates and fees answers, SBA Express loan terms

SBA ends lawful permanent resident ownership of 7(a) and 504 borrowers

2026-02-02T12:00:00Z

Citing Executive Order 14159, SBA required that 100% of direct and indirect owners be U.S. citizens or U.S. nationals. Their principal residence must be in the United States, its territories or possessions. Lawful permanent residents may no longer own any percentage of an applicant. The notice also rescinded the December 2025 exception that allowed up to 5% foreign or offshore ownership.

Who it affects. You if an owner of your business is a lawful permanent resident, a foreign national or a U.S. citizen living abroad. Also lenders and CDCs.

Effective. March 1, 2026. Source: Policy Notice 5000-876441.

Pages on this site it affects. Eligibility answers

SBA updates the 7(a) Working Capital Pilot guide

2026-01-26T12:00:00Z

SBA issued an updated program guide for the 7(a) Working Capital Pilot. Pilot lines can now support financial letters of credit such as warranty bonds. Lenders can charge the 2% extraordinary servicing fee when monitoring is outsourced to a third party. Renewals now count like new originations toward delegated pilot authority.

Who it affects. You if you use a 7(a) Working Capital Pilot line of credit. Also participating lenders.

Effective. January 26, 2026. Source: Information Notice 5000-873246.

Pages on this site it affects. Business line of credit, SBA programs

SBA announces the end of the SBSS score for 7(a) Small loans

2026-01-16T12:00:00Z

SBA announced that it would stop using the FICO Small Business Scoring Service score for 7(a) Small loans on March 1, 2026. Lenders would rely on their own credit analysis instead. Procedural Notice 5000-876777 replaced these procedures before they took effect.

Who it affects. You if you are applying for a 7(a) Small loan. Also 7(a) lenders.

Effective. March 1, 2026. Source: Procedural Notice 5000-875701.

Pages on this site it affects. Business credit scores

SBA allows up to 5% foreign or offshore ownership, briefly

2025-12-19T12:00:00Z

For applications approved from January 1, 2026, SBA let a small group of owners hold up to 5% of an applicant in total. The group was foreign nationals living abroad, conditional permanent residents, and U.S. citizens, nationals or permanent residents living abroad. U.S. citizens, nationals and lawful permanent residents living in the United States had to own the rest. SBA rescinded this exception effective March 1, 2026.

Who it affects. You if your business had a small foreign or offshore owner in early 2026. Also lenders and CDCs.

Effective. January 1, 2026. Source: Procedural Notice 5000-872050.

Pages on this site it affects. Eligibility answers

SBA revises SOP 50 10 8 with 7(a) and 504 program updates

2025-09-30T12:00:00Z

SBA updated SOP 50 10 8 after lender and CDC feedback. The new-business definition dropped the same-area test, so a same-NAICS business with identical ownership and co-borrowers counts as an expansion. A lender may sell a 7(a) loan on the secondary market once a required lien is filed. If the lien is never perfected, the lender risks losing the guaranty. For 504 projects, the construction contingency rose from 10% to 15%. Do-it-yourself construction can now be supported by one third-party estimate instead of two bids.

Who it affects. 7(a) lenders and CDCs. You if you are building or renovating with a 504 loan or expanding into the same line of business.

Effective. September 30, 2025. Source: Procedural Notice 5000-872764.

Pages on this site it affects. 504 loan answers, Collateral answers, Buying a business answers

SBA raises the 504 job creation standard

2025-09-30T12:00:00Z

For 504 loans approved on or after October 1, 2025, each project must create or retain one job per $95,000 guaranteed, up from $90,000. For small manufacturers and energy public policy projects the figure is one job per $150,000, up from $140,000. CDC portfolios may average up to $150,000 per job under other economic development goals. The same applies to projects in places such as Alaska, Hawaii and Opportunity Zones.

Who it affects. You if you are a 504 borrower. Also CDCs, which track job figures across their portfolios.

Effective. October 1, 2025. Source: Federal Register Notice 90 FR 47117.

Pages on this site it affects. 504 loan answers, SBA programs

SBA issues SOP 50 57 4 for 7(a) loan servicing and liquidation

2025-09-25T12:00:00Z

SOP 50 57 4 replaced SOP 50 57 3.1 for servicing and liquidation actions on or after November 1, 2025 (Information Notice 5000-872353). It raised the personal property liquidation value threshold for certain actions from $5,000 to $10,000 and added an SBA Uncollectible loan status. New obligors must meet the current citizenship rules. Loans are now serviced from the Fresno center or the Herndon guaranty purchase center after the Little Rock center closed.

Who it affects. 7(a) lenders, and you if your 7(a) loan is in servicing or liquidation.

Effective. November 1, 2025. Source: SOP 50 57 4.

Pages on this site it affects. After closing answers

SBA adds environmental and ALP Express oversight to SOP 50 56

2025-09-15T12:00:00Z

SBA revised SOP 50 56 so that 7(a) lenders and CDCs must give SBA their environmental review and approval documentation for oversight. It also added the ALP Express corporate governance and review standards to the SOP.

Who it affects. 7(a) lenders and CDCs.

Effective. September 15, 2025. Source: Procedural Notice 5000-869245.

Pages on this site it affects. Applying and closing answers