The Latest SBA Rules You Need to Know

SBA loans are small business loans guaranteed by the Small Business Administration and issued by participating lenders. As all banks are different, an applicant will likely be presented a different rate structure depending on who you talk to.

"As of early last year, agreements which give the third-party manager sole discretion over business operations are no longer accepted.”

Regardless of which loan structure you chose to move forward with, if you want to pursue third-party management, the qualifying rules and regulations have changed. As of early last year, agreements which give the third-party manager sole discretion over business operations are no longer accepted. The SBA now says the applicant must have meaningful oversight of the third-party manager’s activities which are to be outlined in the agreement.

For the applicant to have meaningful oversight, you must:

• Approve the annual operating budget
• Approve any capital expenditures or operating expenses over a significant dollar amount
• Control the bank accounts
• Business operators must be employed and overseen by the applicant

By following these guidelines, you can both qualify for an SBA loan and have your facility professionally managed by a third party.