SBA SOP 50 10 8.1, App19.B.4 — 7(a) Manufacturers’ Access to Revolving Credit (MARC) Loans
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section App19.B.4 (7(a) Manufacturers’ Access to Revolving Credit (MARC) Loans). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 5 provision(s) quoted from SBA's .docx.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, App19.B.4 — 7(a) Manufacturers’ Access to Revolving Credit (MARC) Loans — 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 8.1 App19.B.4
4. 7(a) Manufacturers’ Access to Revolving Credit (MARC) Loans a. All General Requirements in this Appendix apply to 7(a) MARC Loans except as modified below. b. The Lender must place a lien on all assets of the business through a UCC-1 filing. i. The Lender must obtain a first lien on the trading assets of the business, including accounts receivable and inventory.
SOP 50 10 8.1 App19.B.5.a
5. CAPLines All General Requirements in this Appendix apply to all CAPLines unless a variant-specific requirement below states otherwise. a. General CAPLines requirements i. For CAPLines of $50,000 or less, collateral is not required. ii. For commercial real estate securing a CAPLine: a) A loan greater than $500,000 requires an appraisal under paragraph A., g. b) For a loan of $500,000 or less, an appraisal under paragraph A., g. is required when the transaction involves related parties, or if SBA or the Lender concludes that an appraisal is necessary to evaluate creditworthiness. c) If an appraisal is not required, the lender must obtain an appropriate evaluation of the commercial real estate securing the loan that is consistent with safe and sound banking practices. Evaluations are not required to be performed in accordance with USPAP or by State licensed or certified appraisers but should be consistent with the Interagency Guidance Appraisal and Evaluation Guidelines and the Interagency Advisory on the Use of Evaluations in Real Estate-Related Financial Transactions, issued by the Federal Banking Regulators.
SOP 50 10 8.1 App19.B.5.b
b. Working Capital CAPLines i. If the Lender will disburse the line based on a borrowing base certificate, the Lender must obtain a first lien on the Applicant's working or trading assets, including accounts receivable and inventory. ii. If the Lender will not use a borrowing base certificate, the Lender must assume full use of the line and secure the line with sufficient collateral to ensure a 1:1 collateral ratio. The Lender must obtain a first lien on working or trading assets and must take additional collateral if needed to maintain the required ratio. a) If business assets do not fully secure the line, the Lender must take available equity in personal real estate of owners of 20 percent or more of the Applicant and guarantors, except Supplemental Guarantors, subject to the limitations stated in this Appendix, including the rule that real estate with less than 25 percent equity need not be pledged.
SOP 50 10 8.1 App19.B.5.c
c. Contract CAPLines i. The Applicant must provide the Lender with a first lien position on the contract or contracts financed and on the proceeds of those contracts, by assignment and appropriate UCC filing, except where an assignment exception in this SOP applies. ii. The Lender may take additional collateral in accordance with its policies and procedures for similarly sized non-SBA guaranteed commercial lines of credit. iii. All liens must be perfected and lien position verified before the initial disbursement, and for revolving structures that cover more than one season, contract, or project, before each relevant disbursement cycle.
SOP 50 10 8.1 App19.B.5.d
d. Builders CAPLines i. SBA will accept no less than a second lien position on the property being constructed or renovated if the purpose of the first lien was to acquire the property. ii. If the property is part of a subdivision or secures a loan with more than one parcel, the first lienholder must provide a release clause that permits transfer of clear title to an eventual buyer upon receipt of a pre-established payment. iii. The Lender must not take a second lien position if the first lienholder requires full payoff of the entire first loan before any parcel will be released. If the Lender and SBA are in second position, the total amount needed to release the first and second liens may not exceed 80 percent of the fair market value of the completed project.
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Source of record: https://claudeforcompliance.com/regs/sba-sop81-app19-b-4/
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