SBA SOP 50 10 8.1, B.Ch6.B — Post-Approval Modifications

SOP 50 10 8.1 B.Ch6.B

Effective 2026-10-01 · publisher's stamp for this provision

B. Post-Approval Modifications 1. Post-approval and prior to final disbursement: See Servicing and Liquidation Actions 7(a) Lender Matrix, and Servicing and Liquidation SOP 50 57, for complete instructions on post-approval modifications. Regardless of processing method (non-delegated or delegated): a. Lenders must not unilaterally approve any actions that require prior SBA approval. Actions that require prior SBA approval must be submitted to LGPC. The request must include the reason for the action, details of the requested action, supporting documentation, and the Lender's recommendation. b. Post-approval and prior to final disbursement: Regardless of processing method (non-delegated or delegated), Lenders must inform SBA of certain actions, per the 7(a) Lender Matrix, by making the appropriate change using E-Tran Servicing, or successor SBA Loan System. When the Lender makes the change using E-Tran Servicing, or successor SBA Loan System, a separate notification to the appropriate SBA center is not necessary (SBA approval of these items is not necessary, and SBA will not respond in writing). 2. For 7(a) loans that have been fully disbursed (after final disbursement): a. Lenders must submit actions that require SBA notification and requests for prior SBA approval to the CLSC for 7(a) Loans classified in regular servicing status, including partially disbursed revolving lines of credit, which are considered fully disbursed upon initial disbursement. b. Lenders must refer to SOP 50 57, 7(a) Loan Servicing and Liquidation, and Servicing and Liquidation Actions 7(a) Lender Matrix to determine if notification or prior approval from SBA is required. All loan increases, regardless of disbursement status, are subject to statutory, administrative, and program maximums and must be approved by SBA. Further, loan increases must be made in accordance with the SOP 50 10 and the Information Notice on 7(a) fees for the fiscal year that were in effect at the time the loan was approved. 3. Loan Increases: a. Increases to 7(a) loans, regardless of the disbursement status, are subject to statutory, administrative, and program maximums. Upfront and ongoing fees for increases in subsequent years are at the rates in effect at the time the loan was originally approved. Loan increases must be made in accordance with the SOP 50 10 and the Information Notice on 7(a) fees for the fiscal year that were in effect at the time the loan was approved. b. Standard 7(a) (including International Trade), 7(a) Small Loan, EWCP, PLP, PLP-EWCP, SBA Express, and Export Express term loans: If the request for an increase is more than 20% of the original loan amount or is more than18 months after the original approval date of the loan, for loans that were processed under non-delegated procedures, the Lender must request approval from SBA and must include with its request its analysis showing that the purpose of the increase is the same as the original purpose of the loan and that the Borrower’s cash flow can support the increased payment amount. For delegated loans, the Lender must document the same analysis and retain it in Lender’s loan file. c. Revolving lines of credit increases may be made: i. If made under SBA Express and Export Express: a) At any time during the life of the loan, but must be within 5 years for SBA Express and 7 years for Export Express of the date of loan approval and be in compliance with the maximum maturities on SBA Express and Export Express loans; b) Must include an analysis of appropriate credit and risk factors consistent with the procedures the Lender uses for its similarly-sized, non-SBA guaranteed commercial loans if the increase is above 33% of the original loan amount. ii. If made under CAPLines: a) At any time during the life of the loan, but must be within 10 years of the date of loan approval (except Builder’s CAPLines which must be within 5 years of the date of loan approval) and be in compliance with maximum maturities on CAPLines; b) If the request for an increase is more than 20% of the original loan amount or is more than18 months after the original approval date of the loan, the Lender must include with its request its analysis showing that the purpose of the increase is the same as the original purpose of the loan and that the Borrower’s cash flow can support the increased payment amount. iii. May not exceed the dollar limit for the program at the time the loan was originally approved (this includes any other outstanding loans under SBA Express, Export Express, Community Express and Patriot Express); and d. SBA Express, and Export Express Increases: Subject to paragraphs 4.a - d. above, Lenders must follow their established and proven internal credit review and analysis procedures used for their similarly-sized, non-SBA guaranteed commercial loans to determine whether the increase is appropriate and must retain all supporting documentation in Lender’s loan file. Approval of the requested increase in the SBA Loan System will constitute SBA’s prior written consent. SBA may review the documentation supporting the increase when conducting lender oversight activities and at time of guaranty purchase.

Source: SBA SOP 50 10 8.1, B.Ch6.B — Post-Approval Modifications · source URL · snapshot 0fb0c4692cf52938