Effective April 1, 2019, the Small Business Administration (SBA) will mandate compliance with the newly updated Standard Operating Procedures 50 10 5 (K) (“SOP”), Lender and Development Company Loan Programs. The revised SOP provides guidance on previously incorporated revisions of the SOP. Notably, for SBA 7(a) Standard loans, the newly issued SOP clarifies “the minimum equity requirements for certain 7(a) loans involving change of ownership transitions between existing owners”; expanded their guidance on the eligibility of marijuana and hemp-related businesses as discussed in the SBA’s Policy Notice 5000-17057; and “Reduced the minimum monitoring requirements for Working CAPLines.” In regards to applications submitted between now and the effective date, applications submitted prior to April 1, 2019 should follow the previous version of the SOP; SOP 50 10 5 (J). For further details regarding the SBA’s issuance of the SOP 50 10 5 (K), Lender and Development Company Loan Programs, visit the link provided below.
