Every few years, the SBA rewrites its rulebook for lenders. The newest edition — SOP 50 10 8.1 — took effect on October 1, 2026, and the biggest impact is on buyers financing a business acquisition with an SBA 7(a) loan. Here is what changed and what it means for you.
1. Minimum 1.25x DSCR on historical earnings
Lenders must now verify that the business being acquired generated enough cash flow to cover the proposed debt payments by at least 1.25 times, based on historical (not projected) earnings. In plain terms: for every $1.00 of loan payment, the business must have earned at least $1.25. Projections and seller promises no longer count.
2. At least 10% buyer equity injection
Buyers must now put in a minimum of 10% of the total project cost from their own funds. This cannot be borrowed money in most cases. The rule is meant to ensure the buyer has real skin in the game.
3. Quality of Earnings report for $3M+ deals
For acquisitions of $3 million or more, an independent Quality of Earnings (QofE) report is now required. This is a deep dive by an outside accounting firm into whether the seller's reported profits are real and sustainable — a meaningful new cost and timeline factor for larger deals.
4. Sellers can stay up to 24 months
On the friendlier side, sellers may now remain with the business as consultants for up to 24 months after the sale (previously 12). This gives buyers more runway for a smooth transition of customer and supplier relationships.
What should buyers do?
- Start earlier. The QofE report and stricter documentation add weeks to the timeline.
- Keep your cash ready. The 10% injection must be documented and sourced.
- Scrutinize the numbers. If the trailing-12-month DSCR is close to 1.25x, the deal may not qualify.
These are SBA-wide requirements — every SBA lender must follow them. A broker who tracks SOP changes can flag issues before you spend money on a deal that won't qualify.