At Fidelity Bank, our mission is to help small business owners across the country thrive. As an SBA Preferred Lender, our team specializes in delivering personalized financing options that drive growth and promote long-term success. We’re excited to highlight the positive difference our SBA lending professionals made in the small business community during the second quarter of 2025.
Last quarter, our team secured over $22 million in SBA financing across 14 loans! We were able to work with business owners across a wide range of industries and business types including restaurants, specialized freight, beauty salons, hospitality, pet care, education, HVAC, and plumbing.
While we close many loans in North Carolina, our reach of SBA expertise expands across the entire country. In the last three months, we’ve also helped secure funding for businesses in Virginia, South Carolina, Colorado, Tennessee, and New Jersey. Through the two major SBA loan programs, SBA 7(a) and SBA 504, our borrowers were able to gain working capital and finance commercial real estate purchases, business acquisitions, start-up expenses, equipment purchases, and more!
In the second quarter, we saw major updates to the SBA’s Standard Operating Procedures (SOP). These changes directly influence the SBA lending process and could have impacts on business strategies nationwide.
Here are the main things you need to know:
- The SBA Franchise Directory was reinstated. This directory streamlines procedures to help lenders determine business eligibility for SBA loans. New franchises must be SBA-approved to qualify.
- Merchant cash advances and factoring agreements are no longer eligible for refinances.
- Seller notes as equity are eligible but will require full standby for the life of the SBA loan.
- The maximum small loan size has been decreased from $500,000 to $350,000.
- The minimum Small Business Scoring Service (SBSS) score has been increased from 155 to 165.
- Loans that include working capital may require detailed justification.
NEW – Partial Changes of Ownership
- Any selling owners who remain a direct or indirect owner of less than 20% must provide a guaranty for the full loan amount for a period of two years after loan disbursement.
- Multi-step partial changes of ownership are no longer eligible.
Complete Changes of Ownership (excluding Employee Stock Ownership Plans)
- Minimum equity injection of at least 10% of total project costs will be required.
- Seller debt may be used for up to 50% of equity injection, only if the seller is on full standby for the life of the SBA loan.
Have questions about how this may affect your business or a business you know? Whether you’re launching your first venture or expanding an existing business, Fidelity Bank is here to support you. Find an SBA lender to get started.
