Changes in SBA Lending
Starting June 1st, 2025, a new SOP will be in effect. There are quite a few changes that will affect all parties of acquisitions. Here is a quick highlight of those changes:
Small Loans are lowered back to $350,000. This means that loans $350,001 and higher are required to be pledged by personal collateral, if available.
Franchise Directory is back in effect. This means that the franchise being sold will have to be on the franchise directory list.
Partial Change of Ownerships now require the seller retaining any number of shares, to personally guaranty the loan for at least 2-years post-closing.
Any seller-note that will be a part of the 10% injection requirement for acquisitions, will be required to be on standby for the life of the loan rather than the current rule that requires a 24-month standby period.
