New SBA Lending Rules Take Effect October 1: What Buyers and Sellers Should Know
On October 1, 2026, the Small Business Administration will implement its SOP 50 10 8.1. This will change the finance calculations and methodology utilized for business and real estate acquisitions. The new rule will impact both buyers and sellers. For example, the SOP will require a Quality of Earnings for acquisitions for large transactions, a debt service coverage ratio on historical earnings, and an independent valuation.
The key to the transaction will be advanced planning prior to either listing your business for sale or acquiring a business. Buyers should prepare financials prior to signing any agreement with a seller if a buyer intends to utilize an SBA loan. Sellers need to analyze their financial performance records well in advance of listing their business for sale in order to position the sale/acquisition so buyers can qualify for an SBA loan.