SBA Loan Changes in 2025: What Small Business Owners Need to Know
The U.S. Small Business Administration (SBA) recently announced updates to its lending programs. These changes, centered around the new SOP 50 10 8, revised 7(a) loan fees, and expanded fraud prevention protocols, could reshape how small business owners access SBA-backed capital.
What are the changes?
Updated Lending Policies: SOP 50 10 8 (Effective June 1, 2025)
The SBA released a new version of its Standard Operating Procedure, SOP 50 10 8, effective June 1, 2025. This document governs how SBA loans must be originated and serviced. Key changes include clarified underwriting guidelines and removal of the flexible “Do What You Do” standard that allowed lenders to follow their own credit criteria in certain cases. For small business applicants, this means a more rigid and potentially time-consuming loan process. Lenders have less room to make judgment calls based on relationship history or unconventional credit profiles. Businesses that previously might have qualified based on local lending discretion could now face denials due to narrower federal criteria.
Source: SBA.gov – SOP 50 10 8
Revised 7(a) Loan Fees for Fiscal Year 2025
Effective October 1, 2024, the SBA reinstated guaranty fees on 7(a) loans. These fees apply to the guaranteed portion of SBA loans and vary by loan size. For example, loans over $1 million now carry a 3.75% fee on the guaranteed amount, increasing total loan costs for larger borrowers.
Source: SBA.gov – Information Notice 5000-858936
New Fraud Prevention Protocols
In response to past instances of fraud, the SBA has introduced enhanced verification procedures. These include date-of-birth checks, identity validation, ownership screenings, and updated eligibility reviews. While these steps help program integrity, they may add time to the approval process.
Source: SBA.gov – Fraud Measures Announcement (April 2025)
What This Means for Small Business Owners
The 2025 updates bring more structure, scrutiny, and paperwork. For many small business owners, especially those seeking fast access to funds, the SBA process may no longer offer the speed or simplicity needed.
How We Can Help: Fast, Flexible Business Funding
If you need capital to seize an opportunity, hire staff, stock inventory, or invest in growth, you may not have the luxury of time or added requirements that an SBA loan now demands.
That’s where Coast Funding can help. With our funding solutions, you get:
- Fast decisions: approvals often within 24 hours
- Minimal paperwork: streamlined digital application process
- Flexible options: lines of credit, revenue-based financing, and more
We understand that not every small business fits into a government-issued box. That’s why we look at the full picture, not just a credit score or a checklist. Our advisors work with you to determine the best funding solution tailored to your business’s needs.
Sources:
SBA SOP 50 10 8 – Lender and Development Company Loan Programs
7(a) Loan Fees for FY 2025 – SBA Information Notice 5000-858936
SBA Fraud Prevention Measures – April 2025 Announcement