SBA SOP 50 10 8, C.Ch1.C.1 — Land and Necessary Land Improvements
Verbatim text of SBA SOP 50 10 8 section C.Ch1.C.1 (Land and Necessary Land Improvements), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, C.Ch1.C.1 — Land and Necessary Land Improvements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 C.Ch1.C.1
1. Land and Necessary Land Improvements (For example, grading, new streets including curbs and gutters, parking lots, utilities, and landscaping.) No matter how long the land has been owned, the value of the land: Will be based on cost only if it was purchased less than 2 years prior to the date of the application; and Will be based on the fair market value of the land as determined by an independent real estate appraisal that meets the requirements in Paragraph E.2.b, Appraisals, below if the land has been held for 2 years or more; May include the costs of building and building improvements such as facade expenditures, heating, electrical, plumbing and roofing costs. The value of the land also may include the costs of solar panels and associated equipment and installation costs unless: i. The primary purpose of the solar panels is to produce electricity for sale (i.e., solar farms), in which case the panels are treated as machinery and equipment; or ii. The solar panels are part of a system that is leased to the Borrower and owned by a third party, and ownership of these assets will not transfer to the Borrower at the end of the lease.
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