7(a) Changes in SOP 50 10 8: What’s New and How It Impacts You

Okay, we get it—just hearing “SOP 50 10 8” might make your eyes glaze over. But stick with us for a minute, because the latest update to the SBA’s standard operating procedures is more than just a mouthful of numbers.

First Off, What Is SOP 50 10 8?

For those who don’t live and breathe SBA loans, the SOP 50 10 is the Small Business Administration’s guidebook for how lenders help small businesses secure funding. Version 50 10 8 is the latest edition, and B:Side is here to help you incorporate the changes into your process.

What’s in the New Version?

Here are a few highlights from the updates that caught our eye:

  1. Business Ownership Rules: The SBA will require 100% of the business to be owned by US citizens or legal permanent residents. We are also back to disclosing 100% of the business ownership structure.

  2. Processing Change: Lenders that have Delegated authority (PLP status) will now use it exclusively with a couple of minor exceptions. SBA will have a dedicated email box for these lenders to ask specific, deal-related questions.

  3. Equity Injection: The new SOP includes updates that revert back to requiring at least 10% equity on new businesses, changes to the definition of equity injection, and changes to seller carry debt as equity, back to having to be on standby for the life of the loan.

  4. “Small Loan” Definition: Returns to $350,000 or less and minimum SBSS score of 165

  5. Franchise Directory: It’s back, but slightly revised, with SBA working directly with franchisors.

  6. Environmental: For uncontaminated properties, the SBA will not be reviewing the reports.

  7. Partial changes of ownership: Any selling owners who remain an owner MUST provide a limited guaranty for a period of 2 years.

How B:Side can help

  1. If you’re a delegated lender, these changes mean more autonomy. Our LSP services can ensure you’re ready for this!

  2. If you’re a partner or referral source, call us to help you map out any new project.

The Bottom Line

The updates in SOP 50 10 8 bring meaningful changes that will impact how lenders and partners approach SBA 7(a) loans—from ownership requirements to equity injection and delegated processing. Staying compliant and competitive means understanding the nuances, and that’s where we come in. Whether you’re adjusting your internal processes or helping a client navigate their loan structure, B:Side Capital is here to support you with the expertise and resources to move forward with confidence. Find out how we can help! Contact us.

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