Official Source
5000-872764
On This Page
Overview#
On September 30, 2025, the SBA issued Procedural Notice 5000-872764, making technical revisions to SOP 50 10 8 (Lender and Development Company Loan Programs) based on feedback from 7(a) Lenders and CDCs.
Key Changes#
Upfront Fee Calculation#
The notice adopts changes regarding the calculation of the upfront fee for multiple loans made within 90 days, as previously included in SBA Information Notice 5000-872051.
Collateral and Lien Recordation#
Revisions to collateral and lien recordation policies now allow a lender to sell a loan on the secondary market after appropriately filing the required liens. However, the lender remains subject to a full or partial denial of liability if it ultimately fails to obtain properly perfected and recorded liens.
ESOP Valuation Requirements#
For loans to Employee Stock Option Plans (ESOPs), an independent business valuation is no longer required. Lenders may use the valuation obtained by the ESOP that was made in accordance with ERISA specifications.
MARC Loan Clarification#
Appendix 13 (7(a) Manufacturers' Access to Revolving Credit) has been updated to clarify that a MARC loan may not be processed under the lender's delegated authority if it refinances the lender's same institution debt (SID).
What This Means for Lenders#
These technical updates provide greater clarity and flexibility in several areas:
- Secondary market sales can proceed faster with appropriate lien filings
- ESOP transactions have reduced documentation requirements
- MARC loan processing rules are now explicitly defined
Effective Date#
This notice is effective September 30, 2025.
About the Author
VerSquare Editorial Team
The VerSquare editorial team provides insights, guides, and analysis for business buyers, sellers, and advisors navigating M&A transactions.
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