Effective June 1, 2025, the SBA introduced several changes to its lending guidelines that impact acquisition financing. Here’s what buyers need to know, whether they're already working on a deal or just starting their search.
Key Changes
Equity injection verification. Lenders must now verify where all equity injection funds are coming from, not just confirm that the buyer has enough to cover the required 10%. This means providing bank statements that document the source of each contribution.
Updated size standards. The SBA revised size standards for several NAICS codes that apply to digital businesses. E-commerce businesses are now evaluated based on average revenue over three years rather than a single year when determining size eligibility.
Personal guarantee requirements. Anyone who owns 20% or more of the borrowing entity must provide an unconditional personal guarantee. While the 20% threshold hasn't changed, the new SOP clarifies that the requirement applies across all ownership structures, including trusts and holding companies.
Ineligible businesses. The SBA also updated its guidelines to clarify how certain passive income businesses are treated. Content sites that generate all their revenue through advertising remain eligible as long as they meet the two-year operating history requirement.
What Buyers Should Do Now
If you're already under LOI, check with your lender to confirm which version of the SOP applies to your application. Applications submitted before June 1 are generally processed under the previous guidelines.
If you're still searching, pay particular attention to the equity injection requirements. Start organizing documentation for wherever your funds are coming from, whether that's savings, investment accounts, asset sales, or gifts.
Lenders will need 60–90 days of statements for each source, so getting those documents together early can save you time once you're under LOI.