The SBA updated its acquisition lending rules last week.
Since then, I have read different explanations of what changed. A few of them contradict each other outright. That’s normal for the first week, and it’s also how people end up structuring a deal around a rule that doesn’t exist.
Tomorrow at 12:30 PM ET, Drew Eckman (LinkedIn) and I are going through SOP 50 10 8.1 together.
Drew runs SMB loan support for our members. He’s a transactional attorney and an SBA loan broker, which means he reads these documents from both a lender's perspective and a lawyer's. That combination is rare, and it matters when the language is new and everyone is guessing at what it means.
What we’re covering:
Quality of Earnings thresholds. Debt service coverage and how a deal gets classified. How investor capital counts toward the equity injection. Seller financing. What now qualifies as a Business Expansion.
We’ll also spend time on what didn’t change. That part gets lost when everyone is reacting to the parts that did.
If you have a deal in process, bring the specifics. We're taking your questions live.
Sam Rosati
Founder, SMBootcamp
P.S. If someone you know is working a deal right now, forward this to them.