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SBA 7(a) Loan Rule Changes Now in Effect —

As of Sunday, June 1, 2025, the Small Business Administration’s revised 7(a) loan guidelines are officially in place. These changes signal a return to more traditional lending standards and will significantly affect the way SBA financing is structured for acquisitions moving forward.

At eCommerce Lending, we’re here to break down what’s changed—and how you can stay ahead of the curve.

🔍 Key SBA 7(a) Loan Changes:

• Stricter Underwriting Standards
  The previous “Do What You Do” guideline has been removed. Lenders are now required to apply traditional credit evaluations to all loan applicants.
• Seller Financing as Equity
  Seller notes only count as equity if they are on full standby for 10 years and do not exceed 50% of the required equity injection.
• Seller Notes Terms
  Balloon payments are no longer allowed. All notes must be fully amortized over 5 to 10 years. While standby is not required, it is still strongly preferred.
• Seller Retained Equity & Guarantees
  If the seller retains any ownership post-sale, they must personally guarantee 100% of the loan for at least 2 years.
• Credit Elsewhere Test
  Borrowers—or any owner with 20% or more ownership—may be deemed ineligible if they have significant liquid assets.
• SBA Guarantee Fees Return
  Guarantee fees are now reinstated for loans under $1 million.
• Ownership Eligibility
  All owners must be either U.S. citizens or Green Card holders. Foreign ownership is not permitted.
• IRS Tax Transcript Verification
  No exceptions—IRS verification is now mandatory for all applicants.

What This Means for Acquisition Buyers

While these updates may seem extensive, buyers working with eCommerce Lending can move forward with confidence. We’ve long operated with these standards in mind—so our process is already optimized for this new landscape.

Whether you’re early in your search or already under LOI, our team will walk you through how these changes impact your specific deal structure and funding strategy.

✅ Stay Ahead of the Curve

Need help navigating the new rules? Our consultative approach ensures you’re equipped with the clarity and confidence to close successfully—no matter how the rules evolve.

The Five Most Common Buyer Mistakes

What First Time Buyers Get Wrong About SBA Loans

SBA 7(a) loans are one of the most powerful tools available for buying a business, whether it's a brick-and-mortar operation, an online brand, or a service-based company. But if you're new to the process, it's easy to feel overwhelmed or fall into common misconceptions.

At eCommerce Lending, we've worked with thousands of first-time buyers across all industries. And time after time, we see the same misunderstandings that slow things down or lead to avoidable issues. Here’s what you should know upfront so you can move forward with clarity and confidence.

❌ Mistake #1: Thinking You Need Perfect Credit

You don’t need an 800 credit score to get approved. While good credit is important, lenders take a holistic view of your profile. They’ll also consider your liquidity, work experience, debt-to-income ratio, and how well you’re positioned to run the business you’re acquiring.

If your credit has a few dings, don’t assume you’re disqualified, just talk to us first. We can often find a path forward.

❌ Mistake #2: Waiting to Get Prequalified

Too many buyers wait until they’ve found a business before they start thinking about financing. That’s often too late.

Getting prequalified early helps you:
• Understand your budget
• Strengthen your offer
• Move faster when it counts

Even if you’re just starting your search, we recommend getting prequalified so you’re ready to move when the right deal comes along.

❌ Mistake #3: Underestimating the Cash You’ll Need

An SBA loan typically requires a 10 percent down payment. Some buyers assume that seller financing or outside capital will cover it, but that’s not usually allowed under current SBA rules.

You’ll need to show personal, verifiable funds, ideally in your name and seasoned for at least 60 days. We’ll walk you through exactly what counts and how to prepare.

❌ Mistake #4: Overestimating How Quickly the Process Moves

Many buyers are surprised by how much coordination and documentation the SBA loan process requires. While some deals move quickly, others can take significantly longer depending on the deal structure, responsiveness, and how prepared the buyer is.

The key is getting organized early. Having your documents ready and working with a team that specializes in business acquisitions can help avoid unnecessary delays. As we often say—time kills deals, so preparation matters.

❌ Mistake #5: Trying to Navigate the Process Alone

Many first-time buyers try to manage everything themselves or rely on a lender who doesn’t specialize in acquisitions. That often leads to confusion, missed steps, and deal fatigue. A dedicated acquisition lending team can make all the difference in getting to the finish line efficiently and confidently.

✅ How to Set Yourself Up for Success

The SBA loan process doesn’t have to be confusing. The key is getting expert guidance early and understanding how to prepare. Our team works with both first-time and experienced buyers to simplify the process, avoid delays, and close with confidence.

💬 Ready to Get Started?

We’ve helped thousands of buyers secure SBA financing for all types of business acquisitions, with a 98% approval rate and over $1B in deals closed.

Visit our website to fill out a quick form and schedule a call. We’ll guide you through every step.