SBA 504 SOPs: The Basics
The SBA has SOPs, or standard operating procedures, in place for all of its loan programs. These procedures speak to a wide range of things, from borrower contributions to limitations on what loans can be used for, how default loans are handled by the agency, and a great deal more. Each year, the SBA publishes changes to their SOPs as these loan programs are further developed to meet the needs of businesses in the United States. You can find a complete list of all SOPs and download the information for each set of SOPs in PDF format here.
Some of the most recent 504 SOP changes include increasing the borrower contribution for special purpose businesses or organizations in operation under two years (moved up to 15%, or 20% in some instances). Energy projects and manufacturers also had their caps increased to $16.5 million total per lifetime, as long as they remain at $5.5 million per project.
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