New SBA Rules

searcher profile

June 28, 2025

by a searcher from The University of Chicago - Booth School of Business in Greenwich, CT, USA

Hi all, Can someone explain the rule on the new SBA loan, when you have to much liquidity to qualify for a SBA loan. Let's say I want 500k SBA loan, if you have over X liquidity you don't qualify. What that value of X is? double the amount of the loan? more, less? What qualifies as liquidity? cash, stocks, what else? What doesn't qualify? Home equity? investment in PE, real-estate? what else?
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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Unfortunately like many of the SBA rules, there is not a firm final guidance. It is up to the discretion of the lender to determine what makes sense. If you have substantially more liquid assets then the loan amount you are looking for (so say for a $500,000 loan $1 million or more) and those assets are in cash and marketable securities (non-retirement), then you could have an issue. However, if you have another business you need the cash flow, or cash for other reserves and money down, etc., it may be able to be worked around. We would be happy to review any scenario for you and let you know what can be done. This is really going to be more of a factor on larger transactions then smaller ones. Even though you might have $500,000 in liquidity for a $500,000 loan, it is easy to justify that liquidity for reserves for family expenses, working capital, etc. You can reach me here or directly at redacted
commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
This is mostly just for liquid cash & probably stocks. Retirement is not counted nor equity in a home, etc. If you have say $1mm in liquidity and there is a $300k loan amount, it may be difficult. I think in most circumstances this is not a major issue
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