SBA SOP 50 10 8 — what is actually in force

The operative SBA 7(a) and 504 rule is not one document. It is SOP 50 10 8 (2025-06-01) plus 16 notices that amend it — and the SOP itself is already superseded on at least one live requirement.

Notices amending SOP 50 10 8

SOP provisions (616)

616 contiguous provisions cut on the document's own heading hierarchy and each verified verbatim against the source PDF, including all 29 appendix sections.

• Ch5 E-Tran Terms and Conditions through Disbursement for all 7(a) Loans 3,580 ch
• A.Ch1 PRIMARY APPLICANT ELIGIBILITY REQUIREMENTS 2,353 ch
• A.Ch1.B ORGANIZED FOR PROFIT 1,473 ch
• A.Ch1.C LOCATED IN THE UNITED STATES 981 ch
• A.Ch1.D SMALL UNDER SBA SIZE REQUIREMENTS 270 ch
• A.Ch1.D.1 Size Standards 1,226 ch
• A.Ch1.D.2 When Applicant size is determined 1,069 ch
• A.Ch1.D.3 Formal size determinations 1,295 ch
• A.Ch1.D.4 Affiliation 3,103 ch
• A.Ch1.D.4.vi Ownership interests of spouses and minor children must be combined when 1,085 ch
• A.Ch1.D.4.vi.ii Agreements to open or continue negotiations towards the possibility of a 205 ch
• A.Ch1.D.4.vi.iii Options, convertible securities, and agreements that are subject to conditions 934 ch
• A.Ch1.E TYPES OF INELIGIBLE BUSINESSES 831 ch
• A.Ch1.E.vi Bail Bond Companies; and 3,753 ch
• A.Ch1.E.vi.ii.iv Have oversight over the employees operating the business (who must be 788 ch
• A.Ch1.E.vi.i Hotels, motels, recreational vehicle parks, marinas, campgrounds, or similar 1,322 ch
• A.Ch1.E.vi.i.iii Businesses that are engaged in leasing equipment, household goods or other 691 ch
• A.Ch1.E.4 Life insurance carriers are not eligible. 13 CFR § 120.110(d) 1,011 ch
• A.Ch1.E.4.i.ii Gambling activities licensed and supervised by a state authority in those 3,021 ch
• A.Ch1.E.4.i.ii What types of products are being produced and/or sold (e.g., topical products 560 ch
• A.Ch1.E.4.i.iv Whether all products being produced and/or sold comply with all applicable 1,102 ch
• A.Ch1.E.4.i.ii Evidence that the facility is open to both men and women, such as 3,700 ch
• A.Ch1.E.4.i.ii It derives more than 5% of its gross revenue, directly or indirectly, through 191 ch
• A.Ch1.E.15 Prior Loss to the Government 13 CFR § 120.110 (q) 2,279 ch
• A.Ch1.E.15.i.ii SBA Lenders may access CAIVRS at 804 ch
• A.Ch1.E.16 Delinquent Federal Debt 3,419 ch
• A.Ch1.E.18 Speculation 13 CFR § 120.110 (s) 520 ch
• A.Ch1.E.18.v Building homes for future sale (except under the 7(a) Builders CAPLines 1,357 ch
• A.Ch1.F BUSINESSES OWNED BY NON-U.S. CITIZENS 5,240 ch
• A.Ch1.F.i.ii.iii Because it can take up to a year for a newly arrived immigrant to receive a 1,170 ch
• A.Ch1.F.i.i Temporary I-551 stamps. A temporary stamp, issued by USCIS to replace lost 250 ch
• A.Ch1.F.i.i.ii USCIS Form I-327, “Re-entry Permit,” issued to LPRs in lieu of a visa, which 188 ch
• A.Ch1.F.i.i.iii USCIS Form I-797, Notice of Action. Aliens with Conditional LPR status 2,905 ch
• A.Ch1.F.i.i.i “I authorize the U.S. Citizenship and Immigration Services to release 420 ch
• A.Ch1.F.i.i.iv As required by USCIS, all verification requests must include an authorization 1,254 ch
• A.Ch1.G FRANCHISES 2,638 ch
• A.Ch1.G.i Whether SBA determined that the brand meets the FTC definition of a 225 ch
• A.Ch1.G.i.iii Whether there are additional issues the SBA Lender must consider with 4,689 ch
• A.Ch1.G.i.iii.iii Upon completion of SBA’s review and a determination by SBA that the 5,789 ch
• A.Ch1.G.i.iii.i Non-delegated loans: The SBA Lender must provide these documents 2,804 ch
• A.Ch1.G.i.iii.ii Management agreements that give the management company sole discretion 340 ch
• A.Ch1.G.i.iii.iii “Meaningful oversight” by the Applicant means involvement in the decisions 1,022 ch
• A.Ch1.G.i.i.ii Franchisors that would like to appeal SBA’s decision not to place them on 461 ch
• A.Ch1.G.i.i.iv Franchisors that would like to request reconsideration of SBA’s 380 ch
• A.Ch1.H CREDIT NOT AVAILABLE ELSEWHERE 1,677 ch
• A.Ch1.H.ii Conventional lenders or other non-Federal, non-State, or non-local 3,262 ch
• A.Ch1.I CUSTOMER IDENTIFICATION PROGRAMS 1,309 ch
• A.Ch2.A ELIGIBLE PASSIVE COMPANIES 7,809 ch
• A.Ch2.A.i Each holder of an ownership interest constituting at least 20% of either the 265 ch
• A.Ch2.A.i.ii Each spouse owning less than 20% of an EPC or OC must personally 2,586 ch
• A.Ch2.A.3 Size Determinations under the EPC rule. 1,228 ch
• A.Ch2.B LOANS TO EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) 3,429 ch
• A.Ch2.C COOPERATIVES 1,691 ch
• A.Ch2.D 401(K) PLANS INCLUDING ROLLOVERS AS BUSINESS START-UPS (ROBS) 4,263 ch
• A.Ch3.A ELIGIBLE USES OF PROCEEDS 990 ch
• A.Ch3.A.i Include an independent real estate appraisal that meets the SBA Loan Program 242 ch
• A.Ch3.A.i.ii Include an explanation of the circumstances surrounding the 7(a) Lender or 1,225 ch
• A.Ch3.A.i.i Working capital may be used to acquire and/or use business software or 597 ch
• A.Ch3.A.i.i.iii Working capital proceeds may not be used to refinance existing debt or to 374 ch
• A.Ch3.A.3 Farm Enterprises 434 ch
• A.Ch3.A.3.iii Operating expenses directly related to the farming operation, excluding 1,117 ch
• A.Ch3.B RESTRICTIONS ON USES OF PROCEEDS 544 ch
• A.Ch3.B.2 Refinancing a debt owed to a Small Business Investment Company (SBIC) or a New 496 ch
• A.Ch3.B.6 Payment of Delinquent Taxes; or 2,584 ch
• A.Ch3.C.1 Occupancy 5,426 ch
• A.Ch3.C.2 Responsibilities When the Borrower is Leasing Space 1,374 ch
• A.Ch3.C.2.ii No modification or cancellation of lease without SBA Lender's or assignee's 1,596 ch
• A.Ch4 ETHICS, FEES, AND AGENTS 239 ch
• A.Ch4.A ETHICAL REQUIREMENTS 807 ch
• A.Ch4.A.2 Standards of Conduct Reviews for Applicants 3,452 ch
• A.Ch4.B DEBARMENT, SUSPENSION, AND EXCLUSION (SAM.GOV) 2,430 ch
• A.Ch4.C.1 Fees the Lender Pays SBA 1,448 ch
• A.Ch4.C.1.i Calculation of the Upfront Fee. 5,476 ch
• A.Ch4.C.1.i.iv Additional Upfront Fee for Loan Increases. 1,670 ch
• A.Ch4.C.1.i.vi Method of Upfront Fee Payment. 4,298 ch
• A.Ch4.C.2 Fees and Expenses the Lender May Collect from the Applicant or Borrower 1,318 ch
• A.Ch4.C.2.iii As part of its packaging fee, Lenders may charge fees associated with 5,595 ch
• A.Ch4.C.2.iii.ii Fees charged for legal services must be for services performed by an attorney 804 ch
• A.Ch4.C.2.iii.iii Direct costs associated with out-of-pocket expenses described in this section 1,577 ch
• A.Ch4.C.3 Fees the Borrower Pays to SBA 1,053 ch
• A.Ch4.C.4 Prohibited Fees 752 ch
• A.Ch4.D 7(A) LOAN PROGRAM AND USE OF AGENTS 292 ch
• A.Ch4.D.1 Use of Agents in the 7(a) Loan Program 401 ch
• A.Ch4.D.1.ii Prudent oversight should include having written policies governing such 318 ch
• A.Ch4.D.1.ii.iv Federally-regulated 7(a) Lenders are reminded that they must comply with 3,008 ch
• A.Ch4.D.2 Agents 1,464 ch
• A.Ch4.D.3 Referral Agents 428 ch
• A.Ch4.D.4 Packager 512 ch
• A.Ch4.D.5 Lender Service Provider 1,481 ch
• A.Ch4.D.6 Lender Service Provider Agreements 1,843 ch
• A.Ch4.D.6.ii Entities providing technology services to a 7(a) Lender that include 2,169 ch
• A.Ch4.D.6.ii.iii 7(a) Lender’s responsibility: There must be a statement that the 7(a) Lender 723 ch
• A.Ch4.D.6.v Compensation: The compensation must be specifically explained as to what 720 ch
• A.Ch4.D.6.v.vi Term: The full term of the contract including renewal options must be stated 1,760 ch
• A.Ch4.D.7.i Packaging services to assist the Applicant with completing one or more 189 ch
• A.Ch4.D.7.i.ii Other services that include consulting as to the amount and type of financing 2,051 ch
• A.Ch4.D.7.i 7(a) Lenders must review all services and related fees charged to either the 764 ch
• A.Ch4.D.8 Disclosure of Fees – SBA Form 159 1,709 ch
• A.Ch4.D.8.i Information on this form will be used to monitor fees charged by Agents and 3,399 ch
• A.Ch4.E.1 Borrower’s Deposit 1,103 ch
• A.Ch4.E.2 Allowable Fees 222 ch
• A.Ch4.E.2.1 Processing fee (Packaging fee) 339 ch
• A.Ch4.E.2.1.2 Closing Fee 224 ch
• A.Ch4.E.2.1.2.3 Servicing fee (monthly) 401 ch
• A.Ch4.E.2.1.2.5 Assumption fee 418 ch
• A.Ch4.E.2.1.2.1 SBA Guaranty Fee – (up-front 262 ch
• A.Ch4.E.2.1.2.2 Annual Fee – (Ongoing fee) 253 ch
• A.Ch4.E.2.1.2.3 Participation Fee – Senior 377 ch
• A.Ch4.E.2.1.2.5 Debt Refinancing Without 310 ch
• A.Ch4.E.3 Fees for Other Services 731 ch
• A.Ch4.E.3.i Based upon a contractual agreement between the Third Party Lender paying 563 ch
• A.Ch4.E.3.i.ii Acquisition costs or fees for licensing software or software platforms to CDCs 231 ch
• A.Ch4.E.3.i.iii Fees associated with entities that develop systems or lending platforms to 737 ch
• A.Ch4.E.4 Use of Agents in the 504 Loan Program 3,485 ch
• A.Ch4.E.5 Fees an Agent May Charge an Applicant for Packaging and Other Services 269 ch
• A.Ch4.E.5.i Packaging services to assist the Applicant with completing one or more 189 ch
• A.Ch4.E.5.i.ii Other services that include consulting as to the amount and type of financing 915 ch
• A.Ch4.E.5.i.ii 2 percent for loans between $50,000 and the first $1,000,000 and 533 ch
• A.Ch4.E.5.i.ii Contingency fees (fees paid only if the loan is approved or closed); or 299 ch
• A.Ch4.E.5.i CDCs must review the Agent’s services and related fees to determine if the 680 ch
• A.Ch4.E.6 Professional Services Contractors 1,296 ch
• A.Ch4.E.6.i Must be located in the same SBA Region (except for contracts for liquidation 414 ch
• A.Ch4.E.6.i.iv Must not provide assistance to another CDC in its State of Incorporation or 394 ch
• A.Ch4.E.6.i.viii Notwithstanding the prohibition in 13 CFR § 120.820(d) against a CDC 899 ch
• A.Ch4.E.6.i.ii With respect to contracts for management or independent loan reviews 1,002 ch
• A.Ch4.E.6.i At least 60 days prior to the date on which the CDC intends to engage the 3,716 ch
• A.Ch4.E.6.i.iv Must be accompanied by a Board of Directors’ Resolution containing the 399 ch
• A.Ch4.E.7 Disclosure of Fees – SBA Form 159 1,608 ch
• A.Ch4.E.7.i Information on this form will be used to monitor fees charged by Agents and 615 ch
• A.Ch4.E.7.i.i Separate SBA Forms 159 must be completed for each application and 1,589 ch
• A.Ch4.E.7.i.iv CDCs must upload a copy of the completed SBA Form 159, signed by all 685 ch
• A.Ch5.A GUARANTIES 4,869 ch
• A.Ch5.B IRS TAX TRANSCRIPT/VERIFICATION OF FINANCIAL INFORMATION 1,316 ch
• A.Ch5.B.i NAICS Size Standard: For the Applicant, or the Operating Company if the 310 ch
• A.Ch5.B.i.ii Alternative Size Standard: For the Applicant, or the Operating Company if 3,842 ch
• A.Ch5.C INSURANCE REQUIREMENTS 183 ch
• A.Ch5.C.1 Hazard Insurance 600 ch
• A.Ch5.C.1.iii Insurance coverage must contain a MORTGAGEE CLAUSE (or substantial 692 ch
• A.Ch5.C.1.iii.iii Insurance coverage must contain a LENDER'S LOSS PAYABLE CLAUSE 766 ch
• A.Ch5.C.2 Marine Insurance 409 ch
• A.Ch5.C.2.i Act, omission, or negligence of the mortgagor, owner, master, agent, or crew 496 ch
• A.Ch5.C.3 Flood Insurance 863 ch
• A.Ch5.C.3.i Provide coverage that is at least as broad as the coverage provided under the 460 ch
• A.Ch5.C.3.i.iv Contain a mortgage interest clause similar to the one in the standard NFIP 244 ch
• A.Ch5.C.3.i.vi Contain cancellation provisions that are as restrictive as the provisions 1,810 ch
• A.Ch5.C.4 Life Insurance 1,994 ch
• A.Ch5.C.4.iii CDC may accept the pledge of an existing life insurance policy. Credit life 1,184 ch
• A.Ch5.D HISTORIC PROPERTIES 2,253 ch
• A.Ch5.D.i Prior to submitting the SBA Loan application to the SBA loan processing 3,489 ch
• A.Ch5.D.i.ii Local SBA counsel will review the request and may request additional 1,533 ch
• A.Ch5.D.i.ii.i Among other things, the Section 106 review will involve evaluation 2,433 ch
• A.Ch5.E ENVIRONMENTAL POLICIES AND PROCEDURES 470 ch
• A.Ch5.E.1 Environmental Contamination Risks 840 ch
• A.Ch5.E.2 Environmental Investigations 516 ch
• A.Ch5.E.3 Submission of Environmental Investigation Reports 2,858 ch
• A.Ch5.E.4 Environmental Investigation Steps 5,519 ch
• A.Ch5.E.5 Property Contamination or Remediation 881 ch
• A.Ch5.E.5.v Governmental Entity’s designation of responsible Person(s) (as defined in 13 267 ch
• A.Ch5.E.5.v.iii Institutional Controls and Engineering Controls, if any, and their impact on 307 ch
• A.Ch5.E.5.i Indemnification. If any Person (as defined in Appendix 4) who possesses 1,399 ch
• A.Ch5.E.5.i.ii Completed Remediation. If the Governmental Entity has affirmed in writing 687 ch
• A.Ch5.E.5.i.iii No Further Action. If an SBA Lender obtains a “no further action letter” or 528 ch
• A.Ch5.E.5.i.iv Minimal Contamination with Minimal Remediation. If the extent of 607 ch
• A.Ch5.E.5.v Clean-up Funds. If the SBA Lender provides evidence from a Governmental 451 ch
• A.Ch5.E.5.v.vi Escrow Account. If an escrow account is available that equals a minimum of 1,224 ch
• A.Ch5.E.5.v.vii Contamination Originating from another Site. If Contamination on the 783 ch
• A.Ch5.E.5.v.viii Additional or Substitute Collateral. If additional or substitute collateral is 264 ch
• A.Ch5.E.5.v.ix Other Factor(s). The SBA Lender and SBA may rely on factors other than or 1,448 ch
• A.Ch5.E.6 Special Use Facilities 2,639 ch
• A.Ch5.E.7 Release of Rights to Indemnification from SBA/Lender 1,040 ch
• A.Ch5.E.8 Brownfields Sites 292 ch
• A.Ch5.E.9 Questions on SBA’s Environmental Policy and Appeals 2,081 ch
• B.Ch1 STANDARD 7(A) LOANS (LOANS GREATER THAN $350,000) 567 ch
• B.Ch1.A.1 Debt Refinancing 902 ch
• B.Ch1.A.1.ii.iii Credit Card Debt Used for Business Expenses - The Applicant must certify 622 ch
• B.Ch1.A.1.ii.iv Debt that is over-collateralized based on Standard 7(a) collateral 434 ch
• B.Ch1.A.1.ii.vi Debt with a maturity that was not appropriate for the purpose of the financing 1,116 ch
• B.Ch1.A.1.ii.viii Debt reflected on the Applicant’s business balance sheet is eligible for 2,367 ch
• B.Ch1.A.1.ii.iv Refinancing a same institution 7(a) loan. A Lender may refinance its own 3,172 ch
• B.Ch1.A.1.ii.ii Supporting documentation for each debt to be refinanced: Lenders are 1,900 ch
• B.Ch1.A.2 Change of Ownership 2,044 ch
• B.Ch1.A.2.i One or more of the current owners is selling less than their entire percentage 3,738 ch
• B.Ch1.A.2.i One or more current owners is purchasing the entire interest of another 1,601 ch
• B.Ch1.A.2.i.ii Multi-step partial changes of ownership are not eligible. A multi-step partial 424 ch
• B.Ch1.A.2.i.iii 7(a) loans may not fund a partial change of ownership in an EPC for a 2,523 ch
• B.Ch1.A.2.i.vi With the exception of vehicles as described in Para. C.3.d. below, evidence 834 ch
• B.Ch1.B.1 Maximum Loan Amount 375 ch
• B.Ch1.B.2 Maximum Guaranty Amounts and Percentages 663 ch
• B.Ch1.B.2.i.ii 75% for loans over $150,000 1,533 ch
• B.Ch1.B.3 Loan Maturities 2,272 ch
• B.Ch1.B.3.i.ii Where machinery and equipment comprise 51% or more of the proceeds, the 264 ch
• B.Ch1.B.4 Interest Rates 2,308 ch
• B.Ch1.B.4.iv Default interest rates are not permitted. 1,106 ch
• B.Ch1.B.4.iv.vi After approval and prior to final disbursement, Lender must either notify the 11,365 ch
• B.Ch1.C CREDIT STANDARDS 834 ch
• B.Ch1.C.1 Processing Methods 3,183 ch
• B.Ch1.C.1.i Historical cash flow for existing businesses, that demonstrates total 1,151 ch
• B.Ch1.C.1.i.iii Debt Service (DS) is defined as the future required principal and interest 959 ch
• B.Ch1.C.1.v Spread of pro-forma Business Balance Sheet (current business balance sheet 226 ch
• B.Ch1.C.1.v.vi Ratio calculations (based on the pro-forma Balance Sheet and historical and 521 ch
• B.Ch1.C.1.v.viii Assessment of collateral adequacy adjusted in accordance with Paragraph 2,764 ch
• B.Ch1.C.1.v.ii Minimum equity injection requirements for Start-Up Businesses: SBA 3,957 ch
• B.Ch1.C.1.v.iv Source of Equity Injection: The following may be considered equity 1,599 ch
• B.Ch1.C.3 Collateral 10,343 ch
• B.Ch1.C.3.i Independent and have no appearance of a conflict of interest (such as a 3,904 ch
• B.Ch1.C.3.i.i Is 90% or more of the estimated value, the Lender may close the loan 7,959 ch
• B.Ch1.D SUBMISSION OF APPLICATION FOR GUARANTY 3,542 ch
• B.Ch1.D.1 Contents of Lender’s Application for Guaranty & Submission to SBA 3,132 ch
• B.Ch1.D.1.iii Interim Balance Sheet, including a detailed debt schedule, and interim Profit 558 ch
• B.Ch1.D.1.i Appraisal (See appraisal requirements in Paragraph C.3.d, Real Estate 729 ch
• B.Ch1.D.1.i.iv Copy of seller’s financial statements for the last 3 complete fiscal years or 271 ch
• B.Ch1.D.1.v Seller’s interim financial statements no older than 120 days from date of 1,724 ch
• B.Ch1.D.2 Where to Submit Applications for Guaranty 1,876 ch
• B.Ch2 7(A) SMALL & SBA EXPRESS 1,019 ch
• B.Ch2.A ELIGIBLE USES OF PROCEEDS 403 ch
• B.Ch2.A.1 Debt Refinancing 902 ch
• B.Ch2.A.1.ii.iii Credit Card Debt Used for Business Expenses - The Applicant must certify 622 ch
• B.Ch2.A.1.ii.iv Debt that is over-collateralized based on Standard 7(a) collateral 434 ch
• B.Ch2.A.1.ii.vi Debt with a maturity that was not appropriate for the purpose of the financing 1,116 ch
• B.Ch2.A.1.ii.viii Debt reflected on the Applicant’s business balance sheet is eligible for 2,382 ch
• B.Ch2.A.1.ii.iv Refinancing a same institution 7(a) loan. A Lender may refinance its own 3,191 ch
• B.Ch2.A.1.ii.ii Supporting documentation for each debt to be refinanced: Lenders are 1,900 ch
• B.Ch2.A.2 Change of Ownership 2,044 ch
• B.Ch2.A.2.i One or more of the current owners is selling less than their entire percentage 3,752 ch
• B.Ch2.A.2.i One or more current owners is purchasing the entire interest of another 1,609 ch
• B.Ch2.A.2.i.ii Multi-step partial changes of ownership are not eligible. A multi-step partial 424 ch
• B.Ch2.A.2.i.iii 7(a) loans may not fund a partial change of ownership in an EPC for a 3,789 ch
• B.Ch2.B LOAN TERMS AND CONDITIONS 193 ch
• B.Ch2.B.1 Maximum Loan Amount 723 ch
• B.Ch2.B.2 Maximum Guaranty Amounts and Percentages 1,644 ch
• B.Ch2.B.3 Loan Maturities 2,197 ch
• B.Ch2.B.3.i Where land and structures (including poultry houses) for farming 523 ch
• B.Ch2.B.3.i.i Revolving loans of more than 12 months must be structured with a 1,967 ch
• B.Ch2.B.5 Interest Rates 16,443 ch
• B.Ch2.C CREDIT STANDARDS FOR 7(A) SMALL LOANS & SBA EXPRESS 1,244 ch
• B.Ch2.C.1 Processing Method 646 ch
• B.Ch2.C.1.i.ii PLP – When a Lender submits a loan guaranty request under the Lender’s 1,195 ch
• B.Ch2.C.2 Underwriting 247 ch
• B.Ch2.C.2.a Underwriting 7(a) Small Loans 5,432 ch
• B.Ch2.C.2.a.i Start-Up Businesses – SBA considers a business to be a “start-up” for 2,696 ch
• B.Ch2.C.2.a.i.ii above are satisfied, the remaining owner(s) must contribute 1,190 ch
• B.Ch2.C.2.a.i Standby Agreements - only debt that is on full standby (no payments 1,060 ch
• B.Ch2.C.2.a.v Assets other than cash – An appraisal or other valuation by an 461 ch
• B.Ch2.C.2.b Underwriting SBA Express Loans 2,814 ch
• B.Ch2.C.3 Collateral 792 ch
• B.Ch2.C.3.iv Adequacy of Collateral. 697 ch
• B.Ch2.C.3.iv.i Deed restrictions, covenants, easement provisions, reversionary 3,812 ch
• B.Ch2.C.3.iv.i New machinery and equipment (excluding furniture and fixtures) may 1,447 ch
• B.Ch2.C.3.iv.i Taking available equity in the personal real estate (residential and 997 ch
• B.Ch2.C.3.iv.i Piggyback financing occurs when one or more lenders provide more 2,322 ch
• B.Ch2.C.3.iv.i Piggyback financing occurs when one or more lenders provide more 2,223 ch
• B.Ch2.C.3.iv.i Independent and have no appearance of a conflict of interest (such as a 3,912 ch
• B.Ch2.C.3.iv.i Is 90% or more of the estimated value, the Lender may close the loan 7,237 ch
• B.Ch2.D.1 Contents of Lender’s Application for Guaranty 5,405 ch
• B.Ch2.D.1.v Seller’s interim financial statements no older than 120 days from 4,808 ch
• B.Ch2.D.2 Where to Submit Applications for Guaranty 669 ch
• B.Ch2.D.3 Reconsideration of Declined Non-Delegated 7(a) Small Loan Applications 918 ch
• B.Ch2.D.4 Requirements for E-Tran Terms and Conditions 350 ch
• B.Ch3 7(A) CAPLINES 291 ch
• B.Ch3.A ELIGIBILITY AND ELIGIBLE USES OF PROCEEDS FOR ALL CAPLINES 567 ch
• B.Ch3.A.1 Working Capital CAPLines 1,074 ch
• B.Ch3.A.1.iii Debt Refinancing under Working Capital CAPLines 1,854 ch
• B.Ch3.A.1.iii.i It is reflected on the Applicant’s business tax returns (Schedule C for 2,217 ch
• B.Ch3.A.1.iii.v How the new loan will improve the financial condition of the 1,479 ch
• B.Ch3.A.2.i.iii Have the financial capacity and technical expertise to complete the contract 2,384 ch
• B.Ch3.A.3.i Have been in operation for at least 12 calendar months; and 459 ch
• B.Ch3.A.4 Builders CAPLines 804 ch
• B.Ch3.A.4.i.iii Renovations must be “prompt and significant.” Construction must begin 384 ch
• B.Ch3.A.4.i.iv Demonstrate a successful performance record in bidding and completing 363 ch
• B.Ch3.A.4.v Be able to demonstrate prior prompt payments to suppliers and 714 ch
• B.Ch3.A.4.v.ii Proceeds paid to a subcontractor can include the subcontractor’s profit. The 1,070 ch
• B.Ch3.B.1 Maximum Loan Amount 2,495 ch
• B.Ch3.B.2 Maximum Guaranty Amounts and Percentages 699 ch
• B.Ch3.B.2.i.ii 75% for loans over $150,000 1,533 ch
• B.Ch3.B.3 Loan Maturities 1,377 ch
• B.Ch3.B.4 Interest Rates 2,559 ch
• B.Ch3.B.4.iv Default interest rates are not permitted. 1,106 ch
• B.Ch3.B.4.iv.vi After approval and prior to final disbursement, Lender must either notify the 7,109 ch
• B.Ch3.C CREDIT STANDARDS FOR ALL CAPLINES 879 ch
• B.Ch3.C.1 Processing Methods 1,409 ch
• B.Ch3.C.2 Underwriting 1,630 ch
• B.Ch3.C.2.i Historical cash flow for existing businesses, that demonstrates total 1,034 ch
• B.Ch3.C.2.i.iii Debt Service (DS) is defined as the future required principal and interest 868 ch
• B.Ch3.C.2.v Spread of pro-forma Business Balance Sheet (current business balance sheet 226 ch
• B.Ch3.C.2.v.vi Ratio calculations (based on the pro-forma Balance Sheet and historical and 440 ch
• B.Ch3.C.2.v.vii Analysis of working capital adequacy, at a minimum over the next 12 4,531 ch
• B.Ch3.C.3 Collateral 264 ch
• B.Ch3.C.3.ii With respect to collateral, Lenders must use commercially reasonable and 1,074 ch
• B.Ch3.C.3.ii.iv Adequacy of Collateral: A loan request is not to be declined solely on the 5,694 ch
• B.Ch3.C.3.ii.i Independent and have no appearance of a conflict of interest (such as a 3,913 ch
• B.Ch3.C.3.ii.i Is 90% or more of the estimated value, the Lender may close the loan 1,602 ch
• B.Ch3.D SUBMISSION OF APPLICATION FOR GUARANTY FOR ALL CAPLINES 1,999 ch
• B.Ch3.D.1 Contents of Lender’s Application for Guaranty 1,620 ch
• B.Ch3.D.1.i Centralized 7(a) Loan Submission Instructions can be found at the 7(a) Loan 1,883 ch
• B.Ch3.D.1.i.iii Owner Financial Statement (business or personal, as appropriate) dated 632 ch
• B.Ch3.D.1.i.iv Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax 783 ch
• B.Ch3.D.1.i.viii Provide the following if real estate is to be purchased with loan proceeds 533 ch
• B.Ch3.D.1.x Management agreements, if applicable, and if the management agreement is 230 ch
• B.Ch3.D.1.x.xi Documentation of U.S. National and/or LPR/USCIS status verification in 2,536 ch
• B.Ch3.D.1.i Zero Balance Period Requirements: With the exception of Seasonal 457 ch
• B.Ch3.D.2 Where to Submit Applications for Guaranty 1,871 ch
• B.Ch3.D.3 CAPLines-Specific Loan Closing and Disbursement Requirements 2,662 ch
• B.Ch3.D.3.v There is other available and worthwhile collateral pledged to secure 2,362 ch
• B.Ch3.D.3.v Disbursements are made, when needed, to pay for the costs on a specific 609 ch
• B.Ch3.D.3.v.vi With the assignment of contract proceeds and direct payment in place, the 1,035 ch
• B.Ch3.D.3.i Prior to disbursement for each individual project, the lien must be recorded 544 ch
• B.Ch3.D.3.i.ii Prior to final disbursement of construction funds, final lien waivers must be 883 ch
• B.Ch3.D.3.i.i Use a combination of factors for the underwriting and credit decision 2,784 ch
• B.Ch3.D.3.i.v Monitor the lines consistent with the Lender’s policies and procedures 13,286 ch
• B.Ch4 7(A) EXPORT TRADE FINANCE 1,046 ch
• B.Ch4.A EXPORT EXPRESS 450 ch
• B.Ch4.A.1 Eligibility and Eligible Uses of Proceeds for Export Express 1,444 ch
• B.Ch4.A.1.iii.iv Obtaining a general line of credit for Export Transaction purposes (as a 558 ch
• B.Ch4.A.1.iii.viii Acquiring, constructing, renovating, modernizing, improving, or expanding a 479 ch
• B.Ch4.A.1.x.xi Financing indirect exports. The term “indirect export” applies to situations 5,235 ch
• B.Ch4.A.1.x.iv Seller earnouts/buyer rebates: Seller earnouts are prohibited; however, buyer 3,721 ch
• B.Ch4.A.1.i.ii Refinance existing SBA-guaranteed loans except as permitted under 2,295 ch
• B.Ch4.A.2 Other Restrictions that apply to Export Express Loans 488 ch
• B.Ch4.A.2.a.ii Maximum Loans to Businesses with Affiliates 306 ch
• B.Ch4.A.2.b Maximum Guaranty Amounts and Percentages 491 ch
• B.Ch4.A.2.i Multiple Export Express loans are allowed up to the program maximum loan 857 ch
• B.Ch4.A.2.i.iv Combination of 7(a) and 504 loans 811 ch
• B.Ch4.A.2.i Export Express loans must have a stated maturity. The loan term must be the 214 ch
• B.Ch4.A.2.i.i Transactional lines of credit: No disbursement can be made for an 3,925 ch
• B.Ch4.A.2.d Interest Rates 4,696 ch
• B.Ch4.A.2.d.ii Policy on Variable Interest Rates 1,488 ch
• B.Ch4.A.2.d.i Export Express Lenders are permitted to use the same change intervals 7,341 ch
• B.Ch4.A.4 Credit Standards for Export Express 1,215 ch
• B.Ch4.A.4.a Processing Method 1,078 ch
• B.Ch4.A.4.b Underwriting 3,120 ch
• B.Ch4.A.4.i With respect to collateral, Lenders must use commercially reasonable and 1,251 ch
• B.Ch4.A.4.i.i Piggyback financing occurs when one or more lenders provide more 1,395 ch
• B.Ch4.A.4.d Real Estate Appraisal and Business Valuation Requirements 1,348 ch
• B.Ch4.A.4.d.i Independent and have no appearance of a conflict of interest (such as a 3,912 ch
• B.Ch4.A.4.d.i Is 90% or more of the estimated value, the Lender may close the loan 6,557 ch
• B.Ch4.A.5 Submission of Application for Guaranty for Export Express 1,597 ch
• B.Ch4.A.5.a Contents of Lender’s Application for Guaranty 1,407 ch
• B.Ch4.A.5.a.ii Export Express Lenders must obtain and retain all documentation in their 2,612 ch
• B.Ch4.A.5.b Where to Submit Applications for Guaranty 480 ch
• B.Ch4.B EXPORT WORKING CAPITAL PROGRAM (EWCP) 333 ch
• B.Ch4.B.1 Eligibility for EWCP 701 ch
• B.Ch4.B.2 Eligible Uses of Proceeds for EWCP 2,869 ch
• B.Ch4.B.2.ii EWCP loan proceeds may not be used to refinance debt that is already on 1,955 ch
• B.Ch4.B.2.ii.v How the new loan will improve the financial condition of the 981 ch
• B.Ch4.B.2.ii.i Collateral for the loan being refinanced is transferred to secure the 343 ch
• B.Ch4.B.3 Ineligible NAICS Codes 431 ch
• B.Ch4.B.4.a.ii Maximum Loans to Businesses with Affiliates 306 ch
• B.Ch4.B.4.b Maximum Guaranty Amounts and Percentages 1,698 ch
• B.Ch4.B.4.c.ii General: The maximum maturity of an EWCP loan is 36 months. The 2,917 ch
• B.Ch4.B.4.d Interest Rates 1,237 ch
• B.Ch4.B.4.d.i Pre-Disbursement Changes: After loan approval and prior to first 2,871 ch
• B.Ch4.B.4.e Payment Options for EWCP Ongoing Guaranty Fee 2,704 ch
• B.Ch4.B.4.e.i Whether the Lender is submitting SBA Form 1502 Reports on EWCP 896 ch
• B.Ch4.B.5 Credit Standards for EWCP 865 ch
• B.Ch4.B.5.a Processing Methods 409 ch
• B.Ch4.B.5.i Non-delegated – When a Lender submits an EWCP loan guaranty request 454 ch
• B.Ch4.B.5.i.ii Delegated – When a Lender submits an EWCP loan guaranty request under 565 ch
• B.Ch4.B.5.b Underwriting 662 ch
• B.Ch4.B.5.c Credit Analysis 2,823 ch
• B.Ch4.B.5.c.vii Debt service (DS) is defined as the future required principal and/or interest 627 ch
• B.Ch4.B.5.x Ratio calculations for the following financial ratio benchmarks: Current 1,713 ch
• B.Ch4.B.5.i EWCP loans must be secured by no less than a first security interest in all 1,053 ch
• B.Ch4.B.5.i.ii Standby Letters of Credit: SBA requires additional collateral if an EWCP loan 1,171 ch
• B.Ch4.B.6 Submission of Application for Guaranty for EWCP 3,269 ch
• B.Ch4.B.6.a Contents of Lender’s Application for Guaranty 3,606 ch
• B.Ch4.B.6.a.viii Owner Financial Statements (business or personal, as appropriate) dated 326 ch
• B.Ch4.B.6.a.ix Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax 642 ch
• B.Ch4.B.6.x Franchise: For any Applicant operating under a franchise, license or similar 1,294 ch
• B.Ch4.B.6.x.xiv Management agreements, if applicable, and if the management agreement is 232 ch
• B.Ch4.B.6.x.xv Documentation of U.S. National and/or LPR/USCIS status verification in 599 ch
• B.Ch4.B.6.b Where to Submit Applications for Guaranty 1,031 ch
• B.Ch4.B.6.b.ii PLP-EWCP applications – Lenders submitting applications using their 201 ch
• B.Ch4.B.6.b.iii See Chapter 5, E-Tran Terms and Conditions through Disbursement for all 275 ch
• B.Ch4.B.7 EWCP-Specific Post-Approval/Pre-Disbursement Requests for Changes 325 ch
• B.Ch4.B.8 EWCP-Specific Loan Closing and Disbursement Requirements 408 ch
• B.Ch4.B.8.ii EWCP with Master Notes, Sub-Notes, and Sub-Limits: EWCP loans may be 700 ch
• B.Ch4.B.8.i On Single Transaction-Specific Loans and Transaction-Based Revolving 428 ch
• B.Ch4.B.8.i.ii On an asset-based revolving line of credit where advances are made against a 1,005 ch
• B.Ch4.B.8.i.iii Advance rates on foreign purchase orders/contracts or foreign accounts 1,851 ch
• B.Ch4.B.8.i.i Payment terms must be in compliance with the terms and conditions in 8,581 ch
• B.Ch4.B.8.i.i Export-related inventory taken as collateral must be located within the 759 ch
• B.Ch4.B.8.i.i Export-related inventory that is not subject to a valid, perfected, and 2,578 ch
• B.Ch4.C.1 Eligibility for International Trade Loans 563 ch
• B.Ch4.C.1.ii Indirect exports are considered exports for purposes of determining 1,579 ch
• B.Ch3 of Title II of the Trade Act of 1974 (19 U.S.C. 2341 et seq.), AND 704 ch
• B.Ch3.i.2 Eligible Uses of Proceeds for International Trade Loans 198 ch
• B.Ch3.i.2.i Acquire, construct, renovate, modernize, improve, or expand facilities and 2,374 ch
• B.Ch3.i.2.i.v Revolving lines of credit (short-term or long-term) where the original 8,018 ch
• B.Ch3.i.2.i.i It is unable to modify the terms of the existing loan because a 5,103 ch
• B.Ch3.i.2.i.v Evidence that all assets conveyed as a result of the purchase are 1,761 ch
• B.Ch3.i.2.a.ii Maximum Loans to Businesses with Affiliates 306 ch
• B.Ch3.i.2.b Maximum Guaranty Amounts and Percentages 1,954 ch
• B.Ch3.i.2.c.ii Working capital or inventory loans and the financing of intangible assets 1,309 ch
• B.Ch3.i.2.c.vi Mixed purpose loans and loans for all types of changes of ownership: When 1,034 ch
• B.Ch3.i.2.d Interest Rates 4,219 ch
• B.Ch3.i.2.d.i The Prime Rate; or 492 ch
• B.Ch3.i.2.d.iii Policy on Variable Interest Rates 389 ch
• B.Ch3.i.2.d.i Pre-Disbursement Changes: After loan approval and prior to first 4,038 ch
• B.Ch3.i.2.d.i Both the floor and ceiling are stated in the Note; and 5,580 ch
• B.Ch3.i.4 Credit Standards for International Trade 858 ch
• B.Ch3.i.4.a Processing Methods 399 ch
• B.Ch3.i.4.i Non-delegated – When a Lender submits an IT loan guaranty request under 452 ch
• B.Ch3.i.4.i.ii Delegated – When a Lender submits an IT loan guaranty request under the 535 ch
• B.Ch3.i.4.b Underwriting 301 ch
• B.Ch3.i.4.b.i Nature of the business, including a description as to how the Applicant 2,911 ch
• B.Ch3.i.4.b.i Justification for revenue growth, i.e., new product lines, sales 2,354 ch
• B.Ch3.i.4.b.x Discussion of any liens, judgments, bankruptcy filings or pending 2,400 ch
• B.Ch3.i.4.b.i Standby Agreements - only debt that is on full standby (no payments 1,060 ch
• B.Ch3.i.4.b.v Assets other than cash – An appraisal or other valuation by an 461 ch
• B.Ch3.i.4.c Collateral 380 ch
• B.Ch3.i.4.c.i Deed restrictions, covenants, easement provisions, reversionary 1,382 ch
• B.Ch3.i.4.c.ii Required Lien Position 1,638 ch
• B.Ch3.i.4.c.iii IT loans may not be processed under a Lender’s PLP authority when the IT 299 ch
• B.Ch3.i.4.d Real Estate Appraisal and Business Valuation Requirements 734 ch
• B.Ch3.i.4.d.i Independent and have no appearance of a conflict of interest (such as a 3,913 ch
• B.Ch3.i.4.d.i Is 90% or more of the estimated value, the Lender may close the loan 7,966 ch
• B.Ch3.i.5 Submission of Application for Guaranty for International Trade 2,068 ch
• B.Ch3.i.5.a Contents of Lender’s Application for Guaranty 1,847 ch
• B.Ch3.i.5.a.ii PLP Lenders processing IT loans under their PLP authority must obtain and 2,686 ch
• B.Ch3.i.5.a.i Year End Balance Sheet for the last 3 years, including detailed debt 576 ch
• B.Ch3.i.5.a.i Appraisal (see Paragraph 4.d, Real Estate Appraisal and Business 756 ch
• B.Ch3.i.5.a.v Seller’s interim financial statements no older than 120 days from the 1,817 ch
• B.Ch3.i.5.i Non-delegated applications–- For all loans submitted using the non-delegated 627 ch
• B.Ch3.i.5.i.ii PLP applications – Lenders submitting applications using their PLP authority 190 ch
• B.Ch3.i.5.i.iii Reconsideration of declined non-delegated IT applications (13 CFR § 1,405 ch
• B.Ch5.A E-TRAN TERMS AND CONDITIONS 2,417 ch
• B.Ch5.A.4 Construction Loan Provisions 651 ch
• B.Ch5.A.4.ii Examples of evidence include a certificate issued by a licensed building 1,002 ch
• B.Ch5.A.4.i Evidence that the licensed contractor has furnished a l00% performance bond 2,265 ch
• B.Ch5.A.4.i.iii Obtain evidence of Borrower’s ability to pay cost overruns or additional 513 ch
• B.Ch5.A.4.v.vi Obtain lien waivers or releases from all material men, contractors, and 1,290 ch
• B.Ch5.B POST-APPROVAL MODIFICATIONS 3,512 ch
• B.Ch5.B.iii May not exceed the dollar limit for the program at the time the loan was 806 ch
• B.Ch5.C TRANSFER OF GUARANTY BETWEEN PARTICIPATING LENDERS 585 ch
• B.Ch5.D LOAN CLOSING AND DISBURSEMENT 2,574 ch
• B.Ch5.D.ii Master Notes and Sub-Notes: Each loan will have a Master Note to cover the 1,327 ch
• B.Ch5.D.ii.iv Except for those items covered in subparagraphs h.ii and iii immediately 575 ch
• B.Ch5.D.ii.iv.vi Upon termination of the account, the remaining funds must be returned to the 319 ch
• B.Ch5.D.ii.iv.ii Initial interest rate as percent. 715 ch
• B.Ch5.D.ii.x With regards to Borrower payment application: Lender will apply each 2,342 ch
• B.Ch5.D.ii.x.iii The purpose of each disbursement. 741 ch
• B.Ch5.D.ii.x.iii Evidence of an electronic funds transfer to a vendor along with a copy of the 228 ch
• B.Ch5.D.ii.i With the exception of SBA Express and Export Express loans, Lenders must 3,289 ch
• B.Ch5.D.ii.i.iii Regardless of the delivery method, when the Lender uses its own guaranty 4,000 ch
• B.Ch5.D.ii.i.iii No principal who holds at least 50 percent of the ownership or voting interest 639 ch
• B.Ch5.D.ii.i.vi Environmental - For any real estate pledged as collateral for the loan or 2,381 ch
• B.Ch5.D.ii.i.iii Sell, lease, pledge, encumber (except by purchase money liens on property 1,930 ch
• B.Ch5.D.ii.i.ii Obtain evidence of no un-remedied adverse change since the date of the 509 ch
• B.Ch5.D.ii.i.iv Make, where applicable, the required flood hazard determination and require 389 ch
• B.Ch5.D.ii.i.vi Obtain the Borrower’s agreement that it will, to the extent feasible, purchase 389 ch
• B.Ch5.D.ii.i.viii Require, where applicable, appropriate environmental reviews and 1,877 ch
• C.Ch1 ELIGIBILITY THROUGH SUBMISSION OF APPLICATION 524 ch
• C.Ch1.A.1 Job Creation or Retention (Dollars per Job) 1,024 ch
• C.Ch1.A.2 Other Economic Development Objectives and Public Policy Goals 2,227 ch
• C.Ch1.A.2.ii Renewable energy sources that generate more than 15% of energy used at 924 ch
• C.Ch1.A.2.ii.iv With respect to paragraphs i. and ii. above, the Applicant must document the 1,173 ch
• C.Ch1.A.2.i.ii $100,000 guaranteed by SBA for Projects located in Special Geographic 665 ch
• C.Ch1.B THIRD PARTY LENDER PARTICIPATION 1,047 ch
• C.Ch1.B.1 Third Party Loan 13 CFR § 120.920 3,065 ch
• C.Ch1.B.1.ii Third Party Loans may use swap contracts. In order to use an interest rate 1,161 ch
• C.Ch1.B.2 Interim Financing 1,969 ch
• C.Ch1.B.3 Financing Involving Industrial Development Bonds or Industrial Revenue Bonds 2,546 ch
• C.Ch1.B.4 Financing Involving Historic Rehabilitation Tax Credits 1,934 ch
• C.Ch1.C.1 Land and Necessary Land Improvements 1,154 ch
• C.Ch1.C.2 Machinery and Equipment 628 ch
• C.Ch1.C.4 Professional Fees 323 ch
• C.Ch1.C.5 Other Applicant Expenditures 346 ch
• C.Ch1.C.6 Short-Term Debt 413 ch
• C.Ch1.C.8 Contingency Fund 347 ch
• C.Ch1.C.9 “Do-it-yourself” Construction 867 ch
• C.Ch1.C.10 Permissible Debt Refinance without Expansion 246 ch
• C.Ch1.C.10.i Substantially all (75% or more) of the proceeds of the existing debt 3,207 ch
• C.Ch1.C.10.i.iii “Refinancing Project” means the fair market value of the Eligible Fixed 361 ch
• C.Ch1.C.10.i.iv “Eligible Business Expenses (EBE)” are payments of the business for either 4,306 ch
• C.Ch1.C.10.i.iii Acceptance of a Note executed by the Borrower for the balance, or any 3,408 ch
• C.Ch1.C.10.i.ii PCLP CDCs may not approve, under their delegated authority, the 810 ch
• C.Ch1.C.10.i Credit memorandum. The CDC must provide an analysis in its credit 538 ch
• C.Ch1.C.10.i.i Substantially all (75% or more) of the proceeds of the indebtedness 2,102 ch
• C.Ch1.C.10.i.iv Appraisal. Appraisals are not required at time of application. Appraisals 273 ch
• C.Ch1.C.10.v Documentation to Verify Lien(s) at Application. In considering the 480 ch
• C.Ch1.C.10.v.vi Interim Lender Documentation. The Interim Lender must execute SBA Form 2,594 ch
• C.Ch1.C.11 Permissible Debt Refinancing with Expansion 1,201 ch
• C.Ch1.C.11.i Substantially all (75% or more) of the proceeds of the original loan 7,508 ch
• C.Ch1.C.11.i.i Substantially all (75% or more) of the proceeds of the original loan 1,238 ch
• C.Ch1.C.12 Eligible Administrative Costs 595 ch
• C.Ch1.C.13 Change of Ownership 2,908 ch
• C.Ch1.C.14 Pre-Existing Debt on the Project Property 330 ch
• C.Ch1.C.15 Businesses owned by ESOPs 863 ch
• C.Ch1.C.17 Ineligible 504 Projects 501 ch
• C.Ch1.D 504 LOAN AND DEBENTURE TERMS AND CONDITIONS 185 ch
• C.Ch1.D.1 Debenture Limits (Minimum and Maximum) 2,475 ch
• C.Ch1.D.2 Loan Maturities 900 ch
• C.Ch1.D.3 Interest Rates 389 ch
• C.Ch1.E CREDIT STANDARDS 1,104 ch
• C.Ch1.E.1.a Pro-Forma Balance Sheet Analysis 670 ch
• C.Ch1.E.1.b Repayment Ability Analysis 1,145 ch
• C.Ch1.E.1.b.iv Balance sheet and income statement dated within 120 days prior to 569 ch
• C.Ch1.E.1.b.i Justification for anticipated sales volume and/or revenue growth as a 510 ch
• C.Ch1.E.1.c Borrower’s Contribution 910 ch
• C.Ch1.E.1.i Must contribute at least 15%, in which case the Debenture will 275 ch
• C.Ch1.E.1.i.ii Must contribute at least 20%, if the Project involves a new business 958 ch
• C.Ch1.E.1.v.vi Below is a list that contains examples of properties that SBA 2,356 ch
• C.Ch1.E.1.d Additional Borrower’s Contribution and/or Collateral 635 ch
• C.Ch1.E.1.v Limited or no net worth. 184 ch
• C.Ch1.E.1.e Global Cash Flow Analysis 615 ch
• C.Ch1.E.1.e.ii Rental Income 202 ch
• C.Ch1.E.1.f Independent Studies or Reports 374 ch
• C.Ch1.E.1.g Feasibility Studies 651 ch
• C.Ch1.E.1.h Ratio Analysis 634 ch
• C.Ch1.E.1.i Owners or Manager’s Experience 376 ch
• C.Ch1.E.1.i.iv Brief description of the business’s management team including principal’s 373 ch
• C.Ch1.E.1.k Life Insurance Analysis 381 ch
• C.Ch1.E.1.l Credit Reports 427 ch
• C.Ch1.E.1.m Current on Taxes 282 ch
• C.Ch1.E.1.n No Prior Loss to the Government or Delinquent Federal Debt 260 ch
• C.Ch1.E.1.o Payment Delinquencies, Liens and Bankruptcies 269 ch
• C.Ch1.E.1.p Affiliate Financial Statements 460 ch
• C.Ch1.E.1.q Miscellaneous Matters that the CDC Must Address in the Credit 384 ch
• C.Ch1.E.1.q.i From any SBA Program, directly or indirectly; or 697 ch
• C.Ch1.E.1.v.vi The Debenture Pricing. 860 ch
• C.Ch1.E.1.x Whether the loan is for the following special purpose or the Applicant is or 426 ch
• C.Ch1.E.2.a Collateral 4,664 ch
• C.Ch1.E.2.b Appraisals 1,582 ch
• C.Ch1.E.2.b.i Independent and have no appearance of a conflict of interest (such as a 3,446 ch
• C.Ch1.E.2.b.i Equity in land owned for 2 years or more is being contributed as part 1,468 ch
• C.Ch1.F.1 Processing Methods 2,559 ch
• C.Ch1.F.2 Contents of a 504 Loan Application 828 ch
• C.Ch1.F.2.ii.iii Copies of key cost documents such as contractor costs, estimates, vendor 294 ch
• C.Ch1.F.2.ii.iv Independent appraisal for project real estate as required by Paragraph 2.b. of 521 ch
• C.Ch1.F.2.ii.viii Completed SBA Form(s) 159, “Fee Disclosure Form and Compensation 1,979 ch
• C.Ch1.F.2.ii.xv Where appropriate, projected annualized income statements for the first 2 1,394 ch
• C.Ch1.F.2.ii.xx IRS Form 4506-C, IVES Request for Transcript of Tax Return or IRS Form 210 ch
• C.Ch1.F.2.ii.xxi Documentation of U.S. National and/or LPR/USCIS status verification – 511 ch
• C.Ch1.F.2.ii.xxii Not required until loan closing: IRS Transcripts and complete verification of 389 ch
• C.Ch1.F.2.i.iii Financial statements and/or Federal income tax returns for affiliated entities 182 ch
• C.Ch1.F.3 Submission of Application 571 ch
• C.Ch1.F.3.ii One hundred percent of the Applicant’s ownership and percentage of 399 ch
• C.Ch1.F.3.i.ii Applications for projects that result in change of ownership or transactions 649 ch
• C.Ch1.F.3.i.iii SLPC will review each complete ALP Express Loan application for eligibility 419 ch
• C.Ch1.F.3.i.iv SLPC will not review the ALP CDC’s credit decisions for any application 315 ch
• C.Ch1.F.3.v ALP CDCs must submit to the SLPC for review and approval any servicing 196 ch
• C.Ch1.F.3.v.vi Once SLPC determines the applicant and the loan are eligible and that SBA 1,740 ch
• C.Ch2.A SBA E-TRAN TERMS AND CONDITIONS 708 ch
• C.Ch2.A.i.ii PCLP: CDC drafts and executes on SBA’s behalf 3,474 ch
• C.Ch2.A.i.i Evidence of compliance with the “"National Earthquake Hazards Reduction 1,853 ch
• C.Ch2.A.i.i.ii Inspections must be made by a qualified engineer, appraiser, or other party 559 ch
• C.Ch2.A.i.v.vi Where the CDC or the Applicant is to inject funds into the construction 1,279 ch
• C.Ch2.B MODIFYING THE SBA E-TRAN TERMS AND CONDITIONS 3,476 ch
• C.Ch2.B.i Verification that the proposed changes to the ownership of the Borrower 192 ch
• C.Ch2.B.i.ii Verification that there has been no prior loss to the Government caused by 774 ch
• C.Ch2.C.1 Interim Financing 945 ch
• C.Ch2.C.1.iv Funds not disbursed after 1 year will be applied to pay down the Third Party 628 ch
• C.Ch2.C.2 Responsibility for Closing the 504 Loan and Debenture 2,904 ch
• C.Ch2.C.3.i CDCs and SBA must use SBA Form 2286, “504 Debenture Closing 664 ch
• C.Ch2.C.3.i.ii Opinion of CDC Counsel; and 1,428 ch
• C.Ch2.C.4 Designated Attorney 293 ch
• C.Ch2.C.4.ii Membership in the bar of the state in which the attorney’s 504 closing 1,909 ch
• C.Ch2.C.4.ii.iv Attendance at an SBA approved 504 loan closing training course. Attorneys 2,975 ch
• C.Ch2.C.4.i Deliver annually to the 504 Loan Program Division on or before the renewal 1,212 ch
• C.Ch2.C.4.i.iii Submit evidence of attendance at an SBA-approved closing update course 980 ch
• C.Ch2.C.5.i Certify that the Project costs were paid in full and that the Project proceeds 1,542 ch
• C.Ch2.C.5.i.ii Notify SBA counsel in writing of planned debenture closings at least 30 days 296 ch
• C.Ch2.C.5.i.iii Request from the SLPC all necessary modifications to the E-Tran Terms and 312 ch
• C.Ch2.C.5.i.iv Each CDC must issue a written opinion based upon financial statements 1,982 ch
• C.Ch2.C.5.i.vii Request that access to each E-Tran Terms and Conditions approval and all 580 ch
• C.Ch2.C.5.i.viii Electronically submit closing packages by the deadline established by SBA 209 ch
• C.Ch2.C.5.i.ix Use only the 504 Debenture Closing Checklist and submit documents in the 571 ch
• C.Ch2.C.5.x Hold all original loan documents until SBA gives the CDC written 677 ch
• C.Ch2.C.5.x.xi Send by overnight mail to the CSA the necessary debenture closing 758 ch
• C.Ch2.C.5.x.xii Forward the original of all documents listed on SBA Form 2286, “504 705 ch
• C.Ch2.C.5.x.xiii Ensure that all recorded interim lender documents are canceled of record 354 ch
• C.Ch2.C.5.i Issue an annual 504 debenture closing schedule with SBA District Office 418 ch
• C.Ch2.C.5.i.ii Review closing packages. SBA counsel must use the standard Checklist to 684 ch
• C.Ch2.C.5.i.iii Notify CDCs of deficiencies. SBA counsel may reject late packages or 1,015 ch
• C.Ch2.C.5.v Issue an SBA counsel closing opinion. Once SBA counsel is satisfied with 436 ch
• C.Ch2.C.5.v.vi Notify the CDC and the CSA which loans SBA has approved for debenture 1,531 ch
• C.Ch2.C.5.c Central Servicing Agent’s (CSA) Responsibilities 309 ch
• C.Ch2.C.5.c.ii Complete the Servicing Agent Agreement and Note: The CSA fills in the 205 ch
• C.Ch2.C.5.c.iii Distribute post-closing documents. The CSA will provide the following 402 ch
• C.Ch2.C.6 Debenture Pools 316 ch
• C.Ch2.C.7.i Guidance on loan servicing is outlined in SOP 50 55, “504 Loan Servicing 1,221 ch
• C.Ch3.A DETERMINING SBA’S SHARE OF THE PROJECT COSTS 799 ch
• C.Ch3.B STEPS TO CALCULATE THE GROSS DEBENTURE 2,035 ch
• C.Ch3.C SEPARATE PAYMENT OF THE DEBENTURE FEES 1,040 ch
• C.Ch3.D WHEN THE DEBENTURE IS PRICED 962 ch
• C.Ch3.E FUNDING THE DEBENTURE 272 ch
• C.Ch3.F DISBURSEMENT OF DEBENTURE PROCEEDS 758 ch
• App1 FORMS AND RELATED SOPS 3,211 ch
• App2 ACRONYMS 707 ch
• App2.1.2 Complete File Review 4,957 ch
• App3 DEFINITIONS 2,771 ch
• App3.1 (13 CFR § 120.600 7(a) Loan Program Only) The document the FTA issues 305 ch
• App3.1.2 (13 CFR § 120.802 504 Loan Program Only) A document issued by SBA or its agent 1,380 ch
• App3.1.4 Acting as a Lender Service Provider; and 14,582 ch
• App3.1.3 Directs the FTA to issue Certificates. 1,630 ch
• App3.1.1 Accredited Senior Appraiser (ASA) accredited through the American Society of 6,934 ch
• App4 DEFINITIONS – ENVIRONMENTAL 18,780 ch
• App5 RELIANCE LETTER 4,904 ch
• App6 NAICS CODES OF ENVIRONMENTALLY SENSITIVE INDUSTRIES 4,250 ch
• App7 REQUIREMENTS PERTAINING TO GAS STATION LOANS 2,768 ch
• App7.C Results of Environmental Investigation. 2,862 ch
• App8 SBA ENVIRONMENTAL INDEMNIFICATION AGREEMENT 636 ch
• App8.I RECITALS 9,099 ch
• App8.W "Purchase and Sale Documents" means and includes every document memorializing 8,907 ch
• App8.W.4 Environmental Insurance. Borrower shall include Lender as a loss payee on all 1,663 ch
• App8.V REMEDIATION 10,373 ch
• App8.X LOAN DEFAULT 10,525 ch
• App8.U S. Small Business Administration 1,672 ch
• App8.U.2 U.S. Small Business Administration, an Agency of the United States Government 6,327 ch
• App8.U S. Small Business Administration 1,067 ch
• App9 SAMPLE BORROWING BASE CERTIFICATE AND REPORT TO 5,179 ch
• App10 ELECTRONIC SIGNATURES 5,160 ch
• App10.D LENDER LIABILITY FOR FAILURE TO ADHERE TO PRESCRIBED 1,395 ch
• App11 RECORD RETENTION REQUIREMENTS 1,011 ch
• App11.2 Federally-regulated Lenders must comply with the requirements of their FFIR’s 1,574 ch
• App12 SBA EMAIL ADDRESSES 6,331 ch

Sources: SOP 50 10 8 (467 pages, effective 2025-06-01) and 16 SBA notices, all fetched from SBA and quoted verbatim. Generated 2026-09-02.