As of October 1, 2026, SBA lenders have clearer ground rules for historic property reviews. The newly published SOP 50 10 8.1 doesn’t rewrite the process, but it adds documentation requirements and spells out the Section 106 procedures in more detail. The message to all participating lenders is simple: look for historic property issues early on in the loan process, and put what you find in the file just in case it becomes relevant at a later date.

To understand why, it helps to start with the statute. Section 106 of the National Historic Preservation Act requires federal agencies to consider whether federally funded projects could harm properties listed on the National Register of Historic Places (NRHP). Since an SBA loan counts as federal financing, a loan used to buy, renovate or install equipment on a property may require a preservation review before the project can move forward. The SOP now also makes clear that installing equipment triggers the same review. In other words, a loan that funds equipment installation at a site calls for the same historic property check as a purchase or renovation.

It is important to note, however, that the review is not a one-time event tied to the property. The obligation applies to every deal, not just the first one on a given property. Every loan application must get its own review, even if SBA recently financed the same property. A 7(a) loan made shortly after a 504 loan, for example, still needs a fresh assessment.

The next steps depend on the results of the review. The simplest outcome is that the review has no findings. If due diligence turns up no sign of historic significance, then there’s no need to ask local SBA counsel for a Section 106 review, though a lender may still request one if it later receives a screen-out notice from the SBA loan processing center.

The picture changes, however, if the review flags a potentially historic property. If the borrower has no plans to alter the property, the process generally centers on a signed Historic Property Borrower Certification (SBA Form 2481), which is obtained before a non-delegated application is submitted or a loan number is requested under delegated authority. The executed certification is then sent to local SBA counsel for clearance. That clearance does not last in perpetuity. If the borrower’s plans change between signing and disbursement, or it turns out the property needs work, the clearance becomes void and a full Section 106 review is required.

Conversely, a borrower who intends to change a historic property triggers a more demanding process. Where renovation or demolition is planned, a formal Section 106 review by local SBA counsel is required. The request for that review typically includes the due diligence findings, a complete description of the proposed work, and a statement on whether any work has already begun. If work has started, the borrower should be instructed to stop, because the loan may not be approved or disbursed depending on whether the results of the review.  If local SBA counsel determines the property does qualify for the National Register of Historic Places and the proposed renovations would have an adverse effect, then Lender must resolve any adverse effect in a Memorandum of Agreement with SBA and the State Historic Preservation Office before proceeding with the loan.

Apart from SOP’s newly added language on equipment installation, these procedures aren’t new to SBA lending, but are often overlooked by lenders. To keep closings on track, spot these issues early, record every decision, and bring in local SBA counsel as soon as a Section 106 review looks likely. Early diligence and careful file management can help avoid delays, approval problems, and guaranty-purchase complications.

For further assistance please contact the attorneys at Starfield & Smith, P.C. at 215-542-7070 or email us at info@starfieldsmith.com.