SBA Information Notice 5000-866746, Issuance of SOP 50 10 8
Summary
SBA Information Notice, control no. 5000-866746, effective April 21, 2025, addressed to SBA employees, 7(a) Lenders, Certified Development Companies and applicants and borrowers, announcing the issuance of SOP 50 10 8, Lender and Development Company Loan Programs. It states that SOP 50 10 8 becomes effective June 1, 2025 for applications issued an SBA loan number on or after that date, while SOP 50 10 7.1 continues to apply to applications numbered through May 31, 2025. The notice says SBA is largely re-implementing requirements in place before January 2021, including restoring 7(a) underwriting criteria and reinstituting the SBA Franchise Directory with streamlined procedures.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
SBA Information Notice
TO: All SBA Employees and 7(a) Lenders, and CONTROL NO.: 5000-866746
Certified Development Companies, Applicants and
Borrowers of the 7(a) and 504 Loan Programs EFFECTIVE: April 21, 2025
SUBJECT: Issuance of SOP 50 10 8
The purpose of this Notice is to inform 7(a) Lenders, Certified Development Companies (CDCs),
together known as “SBA Lenders,” SBA employees, and Applicants and Borrowers of the 7(a)
and 504 Loan Programs of the issuance of Standard Operating Procedure (SOP) 50 10 8, Lender
and Development Company Loan Programs.
SOP 50 10 8 will become effective June 1, 2025, and will apply to all applications1 that are
issued an SBA loan number on or after that date. SBA Lenders and SBA employees must
continue to use SOP 50 10 7.1 for 7(a) and 504 applications that are issued an SBA loan number
through May 31, 2025.
Users are advised to fully read SOP 50 10 8 to ensure an understanding of all changes.
SBA is largely re-implementing requirements that were in place before January 2021, including
restoring 7(a) underwriting criteria, reinstituting the SBA Franchise Directory with streamlined
procedures, re-affirming that SBA Lenders determine whether the Applicant is eligible for a loan
guaranteed by SBA, and eliminating the “do what you do” philosophy from the SOP.
SBA Franchise Directory – 7(a) and 504 Loan Programs:
SOP 50 10 8 contains instructions on using the SBA Franchise Directory; however, through July
31, 2025, the following procedures must be used while SBA reinstitutes the SBA Franchise
Directory and works with Franchisors to update the listings for all brands that were listed at the
time the Directory was discontinued.
1
SBA is in the process of updating application forms to correspond with SOP changes. Until
updated application forms are available, SBA Lenders must collect all required information and
certifications and retain them in the loan file.
PAGE 1 of 3 EXPIRES: 4/1/26
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
• For brands that were listed on the Directory as of May 2023, the Franchisor/Distributor
will have until July 31, 2025, to execute the new SBA Franchisor Certification. During
this period, the SBA Lender must use the Addendum indicated on the Directory as well
as comply with any notes included with the brand listing, and both the Franchisor and
Franchisee must execute the addendum prior to loan disbursement. If a
Franchisor/Distributor has not executed the Franchisor Certification by July 31, 2025, the
brand will be removed from the Directory.
• For all new brands being added to the Directory, no addendum will be needed but SBA
Lenders must comply with any notes included with the brand listing. The SBA Lender
may proceed with the guidance provided in SOP 50 10 8. Brands are encouraged to send
the brand documents to franchise@sba.gov for review to assure timely listing on the SBA
Franchise Directory.
For the 7(a) Loan Program Only – as of the effective date of SOP 50 10 8:
Requests for exception to policy for 7(a) loans:
• Lenders that do not have delegated authority may submit requests for exceptions to
7aLoanProgram@sba.gov, and the loan will be processed under non-delegated
procedures.
• Lenders that have delegated authority must make a request for an exception for any type
of 7(a) loan to 7aDelegatedLoanApps@sba.gov, providing detailed information about the
application including the names of the principals, address of the project, and a discussion
of the policy for which the exception is being requested along with an explanation why
the exception to policy should be granted.
o If SBA approves the exception, the Lender will receive an email confirming the
approval, and the Lender must proceed to process the application under delegated
authority. The Lender must retain the approval email in the loan file. Exceptions
to policy will be considered on a case-by-case basis, and the decision will only
apply to the specific request.
o The 7aDelegatedLoanApps@sba.gov email account is not to be used for general
policy questions, which should be sent to 7aQuestions@sba.gov.
Submission of 7(a) loan applications for guaranty:
Lenders that do not have delegated PLP authority: Must submit applications to SBA via E-Tran
for SBA approval under non-delegated procedures.
Lenders with delegated authority:
PAGE 2 of 3 EXPIRES: 4/1/26
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
• May only submit applications to SBA via E-Tran for approval under non-delegated
procedures when the loan will refinance the Lender’s same institution debt. For 7(a)
International Trade loans, Lenders must also submit a loan for non-delegated processing
if the collateral securing the loan will not be in first lien position.
• Except for the above, must process all loan applications using their delegated authority.
• May submit questions on a specific loan application, including the names of the
principals and the address of the project, to 7aDelegatedLoanApps@sba.gov. Lenders
must provide sufficient information on the specific application to avoid delays in
responses.
• The 7aDelegatedLoanApps@sba.gov email account is only for questions from Lenders
with delegated authority. Send general policy questions to 7aQuestions@sba.gov.
7(a) Small Loans:
Upon the effective date of the SOP, the minimum acceptable FICO® Small Business Scoring
ServiceSM Score (SBSS Score) will increase to 165 from 155.
Questions:
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Thomas Kimsey
Associate Administrator
Office of Capital Access
PAGE 3 of 3 EXPIRES: 4/1/26
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
File and source
- File
- 2025-04_Information-Notice-5000-866746-Issuance-of-SOP-50-10-8-1.pdf
- Size
- 158,518 bytes
- SHA-256
- c586e2933866ccebcb9a87d52b703adf206a20455b2f50b95f676e019269da17
- Original
- www.sba.gov