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Overview of the June 2025 Changes
The SBA has released updates to the Standard Operating Procedure (SOP) that take effect June 1st, 2025. These changes affect several critical areas of the lending process including seller note requirements, equity injection rules, and adjustments to loan size parameters.
For borrowers who are in the middle of a transaction or planning to close in the coming months, understanding these changes is essential.
SBA SOP changes timeline
Seller Note Standby Requirements
One of the most significant changes involves the standby requirements for seller notes used in conjunction with SBA financing. The updated SOP modifies the terms under which a seller note can be structured while remaining compliant with SBA program parameters.
| Requirement | Previous SOP | June 2025 SOP |
|---|---|---|
| Minimum standby period | 24 months | Review new terms |
| Interest rate cap | SBA maximum | Review new terms |
| Payment structure | Full standby | Modified standby options |
Borrowers and sellers who have already negotiated seller note terms should review them against the new requirements to ensure compliance before submission to a lender.
Equity Injection Rule Updates
The updated SOP includes revisions to how equity injection is calculated and verified for acquisition transactions. These changes affect the minimum down payment requirements and the acceptable sources of equity injection.
Typical minimum equity injection for SBA acquisition loans, though the exact requirement depends on deal structure and lender
SBA SOP guidelines
For first time buyers who are assembling their capital stack, these rules determine how much cash you need to bring to the table and where it can come from.
What This Means for Your Deal
If you are currently in the process of acquiring a business with SBA financing, or planning to begin in the coming months, these changes may affect your deal structure.
Review your seller note terms
Compare your current seller note structure against the new standby requirements. If anything is off, it needs to be renegotiated before submission.
Confirm your equity injection sources
Make sure every dollar of your down payment comes from an SBA-approved source with proper documentation ready.
Talk to someone who reads the SOP for a living
The difference between SBA policy and bank policy matters. Brad and his team review every SOP update and assess the impact on active deals.
“The SBA does not require what most banks require. Knowing the difference is how deals get done.”
CLX stays current on every SBA rule change because our clients depend on it. Brad and his team review every SOP update and immediately assess the impact on active and upcoming deals.
Brad Hettich
President, Commercial Lending X
~30 years in commercial banking. Originated close to $1.4 billion, underwritten $2.5 billion+. Brad writes about SBA lending, deal structuring, and commercial credit markets from the perspective of someone who has been on both sides of the desk.
View full bio →Related Transactions
Recent deals related to this topic.
Business acquisition with seller note structured under new 2025 SBA standby requirements
First-time buyer acquisition with creative equity injection under updated SBA guidelines