SBA SOP 50 10 8.1
What the new acquisition rules mean for lenders.
A practical lender summary of the changes affecting change-of-ownership transactions, valuation, Quality of Earnings, historical cash flow, and supporting documentation.
01 · Appendix 15
The change-of-ownership framework is more explicit.
Appendix 15 provides a dedicated framework for change-of-ownership transactions, effective October 1, 2026.
01
Initial Acquisition
Generally a 10% equity injection and 1.25x DSC.
02
Business Expansion
Generally 1.15x DSC, with more flexibility when post-close liquidity and financial strength are documented.
03
Owner Buyout
04
ESOP / Cooperative
Lender resources
A quick read, and a deeper guide.
Quick read
SBA SOP 50 10 8.1 + Technical Update
One-page lender brief. Explains what changed.
Field guide · What good QoE work looks like
Meet the QoE
A Field Guide to Quality of Earnings for SBA 7(a) Lenders
02 · QoE
Quality of Earnings now has a defined role.
Independent Quality of Earnings is required for an Initial Acquisition or Business Expansion when the business purchase price is $3 million or more, excluding owner-occupied real estate.
Why it matters
03 · History
Historical performance matters.
The credit file is expected to support a more defensible historical earnings baseline.
01
Historical earnings
02
Normalization
03
Cash flow support
For businesses operating less than two years, cash proof must cover all years of operation.
04
Source documentation
Collect required information and certifications and retain the evidence in the loan file.
05
Debt service coverage
06
Transaction structure
Chief organizes this information into a source-linked acquisition analysis rather than leaving it scattered across documents.
04 · Technical Update
What the Technical Update clarified.
01
7(a) Small and SBA Express
May be used for change-of-ownership transactions. For business purchase prices of $350,000 or less, an internal valuation is permitted.
02
Reusing a prior QoE
A previously prepared QoE may be reused with a reliance letter or secondary review by a different firm, but it can't have been prepared by or for the seller.
03
Working-capital true-ups
Working-capital purchase-price true-ups are expressly permitted and aren't treated as seller rebates.
04
Forms still being updated
Lenders must collect the information and certifications required by SOP 50 10 8.1 even while SBA forms are updated, and retain the evidence in the loan file.
05
Trust guaranties
Where trusts collectively own at least 20% of the applicant, the trust must provide an unlimited guaranty and the Trustor must personally guarantee.
06
Mixed-purpose loans
If at least 51% of proceeds are for real estate, maturity may extend to 25 years.
Source basis: SBA Information Notice 5000-882227, "Issuance of SOP 50 10 8.1 Technical Policy Updates" (Sept. 25, 2026), plus lender-industry summaries of Appendix 15. This summary is for informational purposes only. Lenders should rely on the applicable SBA SOP, notices, and their own legal and credit guidance for transaction-specific requirements.
05 · Chief
What Chief does with this information.
Chief preserves the information used in the acquisition analysis so it stays available after the report is delivered.
Financials
QoE
Valuation
Transaction structure
Source evidence
Living Credit Record