SOP 50 10 8 Explained: 2025 SBA Lending Rule Changes Every Lender and Borrower Must Know
Top 7 Changes in SOP 50 10 8 SBA Lenders and Borrowers Must Understand
1. Passive Business Rules Get Stricter
Ghost kitchens, salon suites, and flexible office spaces now face tight restrictions. If revenue is from rent or tenants have dedicated space, the business may be ineligible for SBA loans.
2. Immigration-Based Ownership Rules
100% of owners and guarantors must now be U.S. citizens or Lawful Permanent Residents. Plus, there's a 6-month lookback window that could disqualify deals.
3. SBA Franchise Directory Is Non-Negotiable
If your business model is a franchise—even loosely—you must be listed on the SBA Franchise Directory or risk rejection.
4. Cannabis and CBD Industry Updates
Marijuana remains ineligible. But CBD and hemp businesses can qualify if documentation proves full compliance with FDA, USDA, and state laws.
5. Loan Proceeds and Occupancy Clarified
In EPC/OC loan structures, owner-occupancy requirements and use-of-proceeds guidelines are clarified. Misuse can lead to denial or loss of guarantee.
6. Updated Affiliation Rules
The SBA eliminated “control” as a test for affiliation. Focus is now on ownership percentages, shared management, and NAICS overlaps.
7. More Defined Credit and Size Standards
Changes to size standards, affiliate ownership rules, and credit eligibility now impact how lenders evaluate risk.
What SBA Lenders Need to Do Now
Lenders must immediately update internal SOPs, loan screening protocols, and delegated authority documentation to protect their SBA guarantee.
What Borrowers Need to Know
Borrowers should work with a loan broker or advisor to ensure:
The business is eligible under new rules
Ownership and legal structure are SBA-compliant
All required documentation is in order before applying
Work with Runway Funding Group
At Runway Funding Group, we specialize in SBA loan consulting and brokerage. We help lenders vet deals and borrowers prepare compliant applications under the new SOP 50 10 8 framework.
Contact us today for expert guidance on SBA 7(a) and 504 loans.