SBA released SOPredactedthis week, with updated guidance for 7(a) and 504 loan programs. The new SOP takes effect October 1. Timing matters. Applications that get an SBA loan number on or after October 1 fall under 8.1. Anything submitted through September 30 still runs under the current SOPredacted. The changes with include strengthened change of ownership requirements, but simplified the equity requirements for Business Acquisition and Owner Buyout loans, and moved that guidance into its own section, Appendix 15. SBA also opened the door to pairing eligible change of ownership transactions with a revolving line of credit, through the expanded MARC program or the new Working Capital Pilot. Practically, that means a lender can finance part of an acquisition through a line of credit instead of putting the full purchase price on a term loan. It can lower the required monthly term loan payment while leaving the borrower with working capital to actually run the business after closing. The Office of Capital Access is holding Connect Calls August 25 through 27 to walk through the update, and lender Office Hours start the week of August 31 to discuss the changes and specific questions. Download SBA SOPredactedhere - redacted