Mar 21, 2025
The U.S. Small Business Administration (SBA) has released a major update to its Standard Operating Procedure (SOP), known as SOP 50 10 8, which took effect on June 1, 2025, replacing the previous SOP 50 10 7.1. This revision introduces both structural and policy changes aimed at modernizing SBA lending practices and improving clarity for lenders and borrowers alike.
Key updates include a reorganized SOP structure, now divided into three main sections: Core Requirements, 7(a) Loan Procedures, and 504 Loan Procedures. The SBA has also formalized the use of electronic signatures, with Appendix 10 detailing acceptable methods and lender responsibilities. Environmental policies have been tightened, requiring reports to be dated within one year of loan number issuance and uploaded to the SBA’s E-Tran system.
Other significant changes involve the reinstatement of the SBA Franchise Directory, with franchisors required to recertify by July 31, 2025, and modernized affiliation standards that now focus solely on ownership and NAICS code overlap, eliminating the previous “control” concept. Additionally, citizenship and immigration requirements have been clarified: all owners must be U.S. Citizens, Nationals, or Lawful Permanent Residents (LPRs), while Conditional LPRs and visa holders are no longer eligible.