https://starfieldsmith.com/wp-content/uploads/2026/10/fc920f0c-41bd-4ed0-b8fd-d876548e5d3b-1.mp3 SBA’s recent decoupling of the 7(a) and 504 loan programs creates meaningful financing opportunities for borrowers. For lenders and counsel, however, an important limitation remains: the change works in only one direction, making approval order a critical consideration. On May 18, 2026, SBA issued Policy Notice 5000-879058, “Coordination of 7(a) and 504 for Maximum ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/10/42b2351f-f892-46f6-99cf-7a487d2d7d25-1.mp3 Financing a change of ownership with an SBA loan requires lenders to pay close attention to the purchase agreement deal terms.  In SOP 50 10 8.1, SBA continues to prohibit seller earnouts in changes of ownership, which may increase the purchase price paid to Seller based on the business’s post-closing performance and impact the ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/10/a7b87a64-f3d4-41ca-9611-733c81ac0dba.mp3 The SBA issued SOP 50 10 8.1 Technical Policy Updates, effective October 1, 2026.  For all loans approved by the Small Business Administration (“SBA”) on or after October 1, 2026, all lenders must follow equity injection rules and requirements set forth in SOP 50 10 8.1 Technical Policy Updates.  Lenders processing loans through Preferred ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/10/3fdd10dd-b236-4993-85aa-82cc3339444d.mp3 As lenders begin to underwrite new loans under SOP 50 10 8.1, effective October 1, 2026, it’s important to pay close attention to the revised change of ownership guidance that now appears in Appendix 15. The guidance identifies four eligible categories: (i) Initial Acquisition, (ii) Business Expansion, (iii) Owner Buyout and (iv) ESOP & ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/09/1c74805a-1892-47f9-8f2e-038a3b592d94.mp3 SBA issued a technical update to SOP 50 10 8.1 on September 25, 2026. Although many revisions are administrative, several will affect how lenders process their loan files. What follows is not a comprehensive review of every change. Rather, it is an overview some of the more significant clarifications in Section A and Appendix ... Read More

https://starfieldsmith.com/wp-content/uploads/2026/09/df97eb0e-9b7d-4fb0-9042-d38301d17284.mp3 Certified Development Companies (“CDCs”) have many responsibilities when analyzing real property collateral for a potential 504 loan and the SBA has now added a new requirement to the collateral adequacy analysis for CDCs to consider.  It is important for Third Party and Interim Lenders, as well as CDCs, to understand this requirement in order ... Read More