As another quarter comes to an end this year, Fidelity Bank is pleased to share the impact that SBA loans had on small businesses in the third quarter of 2026.

Thanks to the dedication and hard work of our entire SBA lending team, we were able to fund $23,753,450 in SBA financing through 14 loans! These loans helped small business owners in industries such as legal services, retail, industrial equipment, amusement and recreation, and many more. While seven of these loans closed in our headquartered state of North Carolina, we are a nationwide lender and helped business owners in other states across the country, including Florida, California, Texas, Pennsylvania, and New York.

The most popular funding purpose in Q3 was business acquisitions; however, we also closed other SBA 7(a) loans, and an SBA 504 loan, for the usage of franchise start-up, commercial real estate purchase, asset purchase, and working capital.

The SBA lending team at Fidelity Bank is honored to have been a part of helping businesses grow stronger and more confident within their local communities. As we close out 2026, we look forward to continuing the momentum of one of our most successful years.

At Fidelity Bank, we are Right By You through every step of the lending journey, including through changes in the SBA.

We’d like to share an update that was recently made to the SBA’s Standard Operating Procedure (SOP 50 10 8.1) that supports business owners seeking funding for acquisition opportunities. Effective October 1, 2026, these guidelines include the following:

Debt Service Coverage

  • Acquisition transactions will now require a 1.25x historical Debt Service Coverage Ratio (DSCR)
  • Expansion projects remain at 1.15x historical DSCR
  • Projections alone can no longer be used to support insufficient historical cash flow

Minimum Equity Injections

  • A 10% equity injection remains the standard for business acquisitions
  • Structured seller participation may still be available — Seller debt can count toward equity only when on full standby for the life of the SBA loan and subject to SBA requirements

$3 Million+ Acquisitions

  • Transactions of $3 million or more require a Quality of Earnings (QoE) report
  • Normalized earnings from the QoE must be used when calculating DSCR
  • Partner buyouts and ESOP transactions are generally excluded

Loan Processing

  • Business acquisitions now follow Standard 7(a) processing requirements
  • Business Acquisitions must now follow SBA Change of Ownership requirements regardless of loan size

Seller Transition

  • Seller transition period extended from 12 to 24 months

Refinancing

  • The refinance window for payable seller notes increases from 24 to 36 months

Loan Timeline

  • Transactions already under LOI should review their timelines immediately
  • Applications approved and assigned an SBA loan number before the effective date of October 1, 2026, should be evaluated under the SOP in effect at approval

Fidelity Bank SBA Lending is ready to serve as your trusted lending expert for your next business opportunity or for someone you know. As an SBA Preferred Lender, we have the unique advantage of closing a loan quickly, often within 60 days. Get started with a Business Development Officer today!