Effective June 1, 2025, the SBA implemented updates to its lending guidelines that affect acquisition financing. If you're in an active deal or preparing to start a search, here's the practical summary.
Key Changes
Equity injection verification. Lenders must now source and verify all equity injection funds — not just confirm the amount. Bank statements showing the origin of funds are required for all sources contributing to the 10% injection.
Updated size standards. The SBA revised size standards for several NAICS codes relevant to digital businesses. E-commerce businesses are now evaluated on a 3-year average revenue basis rather than single-year revenue for size eligibility determinations.
Personal guarantee requirements. Any individual owning 20% or more of the borrowing entity must provide an unconditional personal guarantee. This was previously 20%+ as well, but the new SOP clarifies that this applies to all ownership structures including trusts and holding companies.
Ineligible businesses updated. The list of ineligible business types has been updated to clarify treatment of certain passive income businesses. Pure content sites monetized entirely through advertising remain eligible if they meet the two-year operating history requirement.
What Buyers Should Do Now
If you're under LOI on a deal, confirm with your lender which SOP version applies to your application. Applications submitted before June 1 are generally processed under the prior SOP.
If you're actively searching, the equity verification requirement is the most practically significant change. Start gathering documentation for all sources of your equity injection — savings, investment accounts, proceeds from asset sales, gifts — before you're under LOI. Your lender will need 60–90 days of statements for each source.