SBA's New 7(a) Guideline Changes Effective June 1, 2025

the SBA’s new 7(a) loan guidelines go into effect this Sunday, June 1, 2025. These updates bring back more traditional underwriting standards and will directly affect SBA financing for acquisitions. ? Key Changes: -Stricter Underwriting: The “Do What You Do” standard is eliminated; lenders must follow traditional credit evaluation. -Seller Financing as Equity: Only qualifies if on full standby for 10 years and ≤50% of required equity injection. -Seller Notes: No balloon payments. Can amortize over 5–10 years. Standby not required but preferable. -Seller Equity & Guarantees: Any retained ownership requires a 2-year personal guarantee on 100% of the loan. -Credit Elsewhere Test: Borrowers (or 20%+ owners) with excessive liquid assets may be ineligible. -SBA Guarantee Fees: Reinstated for loans under $1 million. -Ownership Requirements: Owners must be U.S. citizens or Green Card holders—no foreign ownership. -Tax Transcripts: IRS verification required—no exceptions. What This Means for You While these updates may seem like a lot, the good news is that eCommerce Lending is already operating at this level. Our underwriting standards have long aligned with these changes, and our team is fully prepared to guide you through every step. Whether you're still exploring or already under LOI, eCommerce Lending will help you understand how these updates may impact your deal—and how to move forward with clarity and confidence. 👉 [Book a Free Consultation by emailing me at redacted eCommerce Lending is here to support you every step of the way. -The eCommerce Lending Team ecommercelending.com