Capital access is one of the most prominent hurdles startups and small enterprises face when running their businesses. The Small Business Administration (SBA) assists small businesses to stay afloat by providing financial counseling, contracting expertise, and business loans. It runs several programs and offers various resources to help these businesses to break even and remain viable. 

In April 2023, the SBA finalized rules to help streamline the eligibility determination of their lending programs and add new fraud review mechanisms on SBA loans. These improvements seek to expand capital access and increase fraud protection for small businesses. 

This post outlines the new SBA rule changes (version SOP 50 10 7) effective August 1, 2023. Follow along to learn more. 

What is SBA SOP 50 10 7? 

SBA SOP 50 10 7 is the latest governing document lending institutions will use come August 1, 2023, when issuing SBA loans. SOP 50 10 contains policies and procedures for 7(a) and 504 loans. Lenders will use these Standard Operating Procedures (SOP) when underwriting and originating SBA-backed loans. 

The Small Business Administration has stringent rules on loans for small businesses. Any business that doesn’t meet the eligibility requirements outlined in the SOP cannot receive a SBA-backed loan. 

The 7(a) and 504 loan programs are the most popular credit options. They have flexible terms, allowing small businesses to access capital, purchase equipment, and acquire fixed assets without stretching their business finances. 

What are the New SBA SOP 50 10 7 Changes? 

The SBA SOP 50 10 7 becomes effective August 1, 2023, and applies to all SBA loan applications received on or after this date. The regulatory changes under the new Standard Operating Procedures include the following: 


Determining SBA loan eligibility can be tasking for lenders. The new SOP allows for in-house eligibility determination using advanced technology. The changes will reduce the burden on lending institutions, allowing them to streamline their operations and increase lending. 

Fraud Review 

SBA loans are susceptible to abuse, waste, and fraud. SBA lenders are responsible for mitigating fraudulent activities in SBA programs. Previously, SBA lenders could not check for fraud indicators upfront. They would approve loan applications based on SBA regulations without reviewing them for possible fraud. The SOP 50 10 7 will use advanced data analytics, AI tools, and third-party data checks to help root out fraud.  

Loan Authorization 

Approving loan applications requires SBA lenders to fill out several forms. However, this process is tedious and duplicative. The new SOP 50 10 7 has removed this requirement, making it easier for lenders to authorize loans to eligible borrowers. 

Affiliation Standards 

The SBA may allow the inclusion of affiliate businesses to apply for financial assistance. However, clarifying qualified affiliates can be tasking for SBA lenders and small business owners. The new SOP 50 10 7 changes simplify affiliation standards, easing the burden on lenders and small business owners. It is not easy to determine who is eligible for an SBA loan. 

Underwriting SBA Loans up to $500,000 

Underwriting and originating SBA loans is now easier. The new SOP 50 10 7 allows SBA lenders to use their current lending policies for non-SBA loans when issuing SBA loans. This guideline applies to SBA loan amounts of up to $500,000. This step will expand the number of eligible businesses that can get small-dollar SBA loans. 

Need Help with SOP 50 10 7 Changes? 

If you need guidance understanding the SBA new SOP 50 10 7 changes, we at Private Practice Transitions are here to help. We provide highly specialized services for small and established businesses. We can assist you in determining your eligibility and accessing capital for your small business. Call us at (253) 509-9224 or visit our website to learn more about our services.