News
Updates from across the SBA lending industry
The SBA's 2027 Budget Bombshell + Default Danger Zones | April 14, 2026 | SBA Today
SBA Today discusses three critical policy developments affecting lenders: proposed decoupling limits that would allow borrowers to access maximum funding under both 7(a) and 504 programs simultaneously, a 93% budget cut to Entrepreneurial Development programs that could impact borrower support infrastructure, and emerging default risk patterns in 2019 and 2023 loan cohorts revealed by Lumos data. The episode highlights tension between volume/manufacturing growth mandates and the erosion of support systems that help mitigate borrower defaults.
Trump Signs SBIR-STTR Reauthorization Through 2031 With Security Reforms
President Trump signed S. 3971, the Small Business Innovation and Economic Security Act, on April 13, 2026, reauthorizing the SBIR and STTR programs through September 30, 2031. The legislation, sponsored by Senate Small Business Committee Chair Joni Ernst and House Small Business Committee Chairman Roger Williams, includes reforms to strengthen national security, program integrity, and accountability. Since 1982, these programs have invested over $81 billion into more than 34,000 small businesses and supported companies including Qualcomm, Biogen, and Illumina.
Emily Doxzon Named Chief of SBA's 7(a) Lending Division
The SBA has announced Emily Doxzon as the new chief of its 7(a) Division, which oversees the agency's flagship small business loan guarantee program. The appointment was announced via the National Association of Government-Guaranteed Lenders (NAGGL).
SBA Lender Leadership Summit 2026 Registration Now Open
Registration has opened for the 2026 SBA Lender Leadership Summit, an annual conference for SBA lending professionals. The event brings together lenders and SBA officials to discuss program updates, industry trends, and policy developments affecting the small business lending landscape.
May 1st CHANGES Every Lender Should Know | SBA Today | April 8, 2025
Effective May 1st, 2025, the SBA is expanding the International Trade Loan (ITL) program to offer 90% guarantees for manufacturers (NAICS 31–33) and the entire food supply chain, designed to support domestic production reshoring and address supply chain resilience. Lenders should prepare for these program changes and leverage the new "Make Onshoring Great Again" Portal to connect borrowers with domestic suppliers; the episode also references BayFirst data on guaranty purchase variances.
SBA OIG Recovers $15M in Fraudulent PPP and EIDL Loans
The SBA Office of Inspector General has recovered more than $15 million in taxpayer funds from two financial institutions tied to potentially fraudulent Paycheck Protection Program and Economic Injury Disaster Loan accounts spanning over 1,000 loans. Under newly sworn-in Inspector General William W. Kirk, the SBA OIG has now recovered over $86.7 million from financial institutions related to pandemic-era fraud, part of a broader $2.8 billion in total investigative recoveries across SBA's COVID-19 relief programs.
SBA, SBDC to Host Free Virtual Summit May 5-6 for Small Businesses
The U.S. Small Business Administration and America's Small Business Development Center will hold a free online National Small Business Week Virtual Summit on May 5-6, 2026, from 11 a.m. to 6 p.m. ET. The event will feature educational workshops on topics including manufacturing, digital marketing, AI, and business planning, along with networking opportunities and information on federal resources for small business owners.
OFN Slams FY2027 Budget Proposal to Cut CDFI Fund by $204M
The White House's FY2027 budget request proposes a $204 million cut to the CDFI Fund and deep reductions to SBA and HUD programs, drawing sharp criticism from Opportunity Finance Network (OFN) President and CEO Harold Pettigrew. OFN noted that Congress previously rejected a similar ~90% cut proposal for FY2026, ultimately passing a bipartisan spending package signed by President Trump that maintained $324 million in CDFI Fund appropriations. OFN is now urging Congress to again hold the line at $324 million for FY2027, citing the Fund's leverage ratio of roughly $8 in private investment per $1 in public funding and its 2023 financing of over 109,000 businesses.
10 Tips to Crossing the Quarter-End Finish Line | March 31, 2026 | SBA Today
SBA Today addresses quarter-end operational best practices for SBA lenders, including file auditing, borrower communication, and closer management. The episode also notes the SBA's relocation of its Washington Metro Area District Office to Herndon, Virginia, which may impact lenders in that region.
SBA Clarifies Citizenship and Residency Rules for 7(a) Loan Program
The SBA has released updated FAQs addressing new citizenship and residency requirements for 7(a) small business loans, along with clarified underwriting standards. These guidance documents provide lenders with specific criteria for loan eligibility and applicant qualification. The clarifications help standardize lending practices across the SBA's flagship loan program.
SBA Boosts Made in America Loans to 90% Guarantee for Manufacturers
The SBA announced an enhanced International Trade Loan (ITL) program effective May 1, 2026, increasing the federal guarantee to 90% for eligible manufacturers in NAICS sectors 31-33, compared to the standard 75% for 7(a) loans. The program aims to support equipment upgrades, facility modernization, supply chain diversification, and expansion, with the SBA also expanding ITL eligibility to food supply chain businesses. Lenders can expect greater confidence in deploying capital to domestic manufacturing projects under the enhanced guarantee structure.
SBA Expands Grocery Guarantee: 90% ITL Loan Guarantee for Food Supply Chain
The SBA has announced an enhanced 'Grocery Guarantee' through its International Trade Loan (ITL) Program, offering a 90% federal guarantee (vs. standard 75%) to agricultural producers, food processors, wholesalers, and logistics providers effective May 1, 2026. The expanded guarantee aims to increase lender confidence and capital deployment throughout the food supply chain to boost domestic production and lower grocery costs.
NADCO National Small Business Summit 2026: Registration Now Open
The National Association of Development Companies (NADCO) has opened registration for its 2026 National Small Business Summit, the premier annual conference for 504 CDC professionals. The event brings together CDC executives, SBA officials, and industry leaders to discuss 504 program updates, regulatory changes, debenture market trends, and best practices in economic development lending.
SBA 504 Rates Drop to 5.7% for 25-Year Terms in March 2026
SBA 504 loan rates decreased in March 2026, with 25-year terms reaching 5.722% and 20-year terms at 5.783%, continuing a downward trend from early 2026. The rates, which include CDC, SBA, and central serving agent fees based on NADCO debenture pricing, are updated monthly with each funding cycle. Manufacturing-specific rates also declined, with 25-year manufacturing loans now at 5.480%.
SBA Names 2026 National Small Business Week Award Winners
The SBA announced its state and territory Small Business Persons of the Year and specialty award recipients for National Small Business Week (May 3-9, 2026), with an awards ceremony scheduled for May 3 in Washington, D.C. SBA Administrator Kelly Loeffler will recognize honorees across categories including Exporter of the Year, Small Business Manufacturer of the Year, and others. The agency will also host a virtual summit and nationwide roadshow to provide resources and training to small business owners.
SBA 7(a) Prime Rate Holds at 6.75% for March 2026
The SBA's prime-based lending rate remains at 6.75% for March 2026, with the optional peg rate set at 4.50% through Q1. Lenders should note that maximum allowable fixed rates are calculated using prime plus applicable spreads under SOP 50 10 5, with standard rounding rules applied.
SBA Updates 7(a) Small Loan Underwriting Requirements After SBSS Score Sunset
The SBA has issued revised underwriting requirements for 7(a) Small Loans effective March 1, 2026, replacing the discontinued FICO SBSS Score with traditional credit analysis standards. Lenders must now evaluate credit history, repayment ability, and loan-specific factors, with a minimum debt service coverage ratio of 1.10:1 required; loans falling short must be processed as Standard 7(a) or SBA Express loans instead.
SBA Expands 7(a) Working Capital Pilot Program for Small Business Homebuilders
The SBA highlighted project-based line of credit financing availability through the 7(a) Working Capital Pilot Program for small business homebuilders, effective March 1, 2026. The agency will host an informational webinar on March 11 to introduce lenders to the program and updated requirements, with NAGGL offering a separate 90-minute underwriting workshop on March 12 covering working capital product selection and underwriting standards.
SBA Working Capital Pilot Program Launched; Training Resources Now Available
The SBA's 7(a) Working Capital Pilot (WCP) program, which began August 1, 2024, provides monitored lines of credit for small business financing needs. The SBA held an update on March 11, 2026, with recordings available for lenders. NAGGL is also offering a webinar on underwriting working capital lines of credit to help lenders understand SBA requirements and best practices.
SBA OIG Flags 73,302 Loans for Eligibility Review; Lenders Face Potential Liability
The SBA Office of Inspector General issued a critical report on eligibility determinations made under SOPs 50 10 7/7.1 (August 2023-May 2025), finding limited assurance that borrowers met eligibility requirements for 73,302 loans totaling $32 billion. SBA will flag these loans for review at guaranty purchase and pursue recovery "where appropriate and legally justified." NAGGL emphasizes that absent knowingly submitted ineligible applications by lenders, SBA bears responsibility for eligibility determinations during this period.
SBA Expands 7(a) International Trade Loan to Food Supply Chain
Effective May 1, 2026, the SBA will expand eligibility for its International Trade Loan (ITL) program to small businesses in designated food supply chain sectors, offering an enhanced 90% guarantee known as the "Grocery Guarantee." The expansion covers businesses in food production, processing, warehousing, logistics, and distribution; additional implementing guidance and NAICS code details are expected soon.
THE $32 BILLION ELIGIBILITY FLAG! | March 24, 2026
SBA Today discusses critical OIG oversight priorities for 2026, including a significant eligibility assurance gap affecting 73,302 loans ($32B+) flagged in OIG Report 26-07 for limited assurance on eligibility at time of purchase. The episode highlights that lenders with rapid volume increases are under heightened scrutiny, warns of a KPMG audit disclaimer signaling future audit concerns, and previews planned OIG reviews of Lender Service Providers and manufacturing portfolios—emphasizing that robust loan documentation is essential for surviving compliance reviews.