SOP 50 10 (Standard Operating Procedure 50 10) is the SBA's lending rulebook for its 7(a) and 504 programs. It governs eligibility, the 10% equity injection, seller-note standby rules, personal guarantees, and change-of-ownership requirements. The current edition is SOP 50 10 8.
What SOP 50 10 8 dictates for buyers
- Minimum 10% equity injection on every complete change of ownership
- Seller notes count for up to half the injection, only on full standby, via Form 155
- Personal guarantees from all 20%+ owners
- Citizenship/residency rules tightened for 2026
Because the SOP is revised periodically via policy notices, always confirm the current rule with your lender before structuring.
Why it matters when buying a business
Every SBA financing lever you use, the down payment, the standby note, the guarantee, traces back to what the SOP allows that year. Structuring a deal that the current SOP won't approve wastes months. Know the version in force, and lean on your 7(a) lender to confirm the fine print.
