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SBA SOP Change To $5 Million Guarantee Cap To Allow Individuals To Receive Multiple Guarantees

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Jeff Snell | 02/20/2024

Click Here Jeff Snell and Steve Mariani discuss how this SOP change might be interpreted by borrowers, lenders, underwriters and the SBA will likely put the new SOP into practice.

They continue the conversation discussing the benefits of the SBA potentially increasing the existing $5,000,000 SBA gurantee cap to $10,000,000. The existing guarantee cap was raised from $2,000,000 to $5,000,000 in 2010. Jeff points out that over the past 14 years since the most recent increase in loan cap that due to inflation (assuming 3% annually) business buyers have lost 42% of their purchasing power and why a $10,000,000 guarantee cap would be beneficial to the market.


This blog was originally written by Jeff Snell, LMCBI, M&AMI, CM&AP, ABA. Jeff is the founder and principal broker of ENLIGN Business Brokers and Advisors (www.enlign.com) headquartered in Raleigh, NC. For 20 years, ENLIGN has been providing business brokerage and M&A transaction services to main street and lower middle market business owners across the United States. He can be contacted at (919) 624-1124 or jsnell@enlign.com.