For SBA lenders
Short answer
A lender demonstrates adherence to
SOP 50 10 requires lenders to underwrite 7(a) loans with the same diligence as if there were no SBA guaranty. This involves a comprehensive analysis of all aspects of the loan. Lenders must produce a detailed credit memo that thoroughly justifies the loan decision based on sound financial analysis, industry standards, and the borrower's capacity to repay.
An SBA loan reviewer examines a defaulted loan file. The lender's credit memo clearly articulates the borrower's strong cash flow, ample collateral, and robust management team at origination, demonstrating the loan met prudent lending standards despite the eventual default.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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