Need help?
Connect with our team by email, phone, or live chat.
Mon – Fri: 8am – 5pm CT
Sat: 10am – 7pm CT
Sun: Closed
Navigating the 2025 SBA SOP Changes
A Guide for Loan Brokers
Start earning up to 3% in Referral Fees by partnering with NEWITY.
Help your small business clients gain access to affordable working capital loans up to $350,000 through SBA 7(a) and NEWITY Growth Term Loans.
Effective June 1, 2025 – The Small Business Administration’s updated Standard Operating Procedure (SOP) 50 10 8, introduced major changes to how SBA loans are qualified, structured, and processed. NEWITY’s Referral Partner Program remains the best way for business loan brokers to help their clients access small business financing. This guide covers everything you need to know to successfully navigate the new lending landscape and increase your earnings from small business loan referrals.
A Summary of the Key 2025 SOP Changes:
No Foreign Ownership
Under SOP 50 10 8, SBA loans are now off-limits to any business with foreign ownership—regardless of percentage. Businesses cannot have anyone in their capital stack who is not a U.S. citizen or Lawful Permanent Resident. There is no work-around for this; even in instances where foreign entities are invested in the business. Every individual in the ownership structure must be a U.S. citizen, national, naturalized citizen, or lawful permanent resident with a valid Green Card that will not expire throughout the life of the loan (in most cases 10 years). Those with conditional green cards, asylum status, DACA, and other temporary immigration classifications do not qualify. The SBA uses a six-month lookback to examine recent ownership changes.
Small Loan Cap Reduced
The SBA has reduced the maximum loan amount under the 7(a) Small Loan Program from $500,000 to $350,000.
Higher SBSS Score Requirement
The minimum acceptable SBSS score has increased from 155 to 165 for loans to qualify under the 7(a) Small Loan Program. As a result, qualifying for the small loan program will become slightly more challenging. Whether the SBSS score is on the low or high end, the process and documentation for the SBA 7a small loan program will remain the same.
SBA Franchise Directory Reinstated
Effective June 1, 2025, only franchisors and distributors listed in the SBA Franchise Directory are eligible for SBA financing. Any franchisor or distributor who has not signed a new certification by July 31, 2025, will be removed from the Franchise Directory. Under these new changes, lenders can only lend to Franchisors and Distributors approved and contained in the directory. Many brands previously eligible may now be disqualified, but SBA lenders can request franchisors not already approved to apply to be in the directory, and the franchisors can sign up at any time, as long as they meet the SBA’s qualifications.
Real Estate Collateral
If a business owns real estate and has more than 25% equity, the SBA now requires that the property be pledged as collateral. This involves submitting mortgage documentation, appraisals, title evaluations, and potentially industry-specific inspections. While not a major roadblock for most businesses, borrowers should be prepared for a slower process, as closing requires additional new steps.
No Merchant Cash Advance or Factoring Refinancing Allowed
SBA loans can no longer be used to refinance merchant cash advances or factoring agreements. This will negatively impact companies looking to consolidate this type of debt into more traditional debt. Borrowers with MCA or factoring debt must seek alternative financing, because an SBA loan is no longer an option.
Updates to the NEWITY Partner Program:
At NEWITY, our Partner Program was built to eliminate friction and unlock growth for referral partners. We simplify SBA 7(a) loan referrals and remove common barriers to scale. We have streamlined the loan process, so your clients get funded faster with more loan options. Our referral partner program allows lenders and brokers to offer their clients access to SBA 7(a) working capital loans. For clients not yet eligible for SBA 7(a), we have expanded our offerings to include alternative loans and financing options to broaden support for your borrowers.
Why partner with us?
We make the process easier for you and your clients:
- 10-minute eligibility screen with no credit impact.
- Get started with only 3 types of documents: personal & business tax returns and the past 6 months of bank statements.
- Alternative financing options are available if your clients do not qualify for an SBA 7(a) loan.
- Exclusive access to additional capital products for your clients.
- Partner portal with extensive application and monitoring capabilities.
What makes NEWITY different for referral partners:
Bi-Monthly Referral Fees
NEWITY helps borrowers access SBA funding three times faster than the national average and pays referral fees twice per month via ACH, following your clients’ loan funding. Referral partners earn a standard 2% commission on clients’ SBA 7(a) loan amount funded by Northeast Bank. Partners with $4.5M or more loans funded by Northeast Bank within a quarter will earn a 3% referral fee on all loans funded by Northeast Bank the next quarter.
Easy Application Process
At NEWITY, you can apply on behalf of your clients with a simple and quick loan application process. Eligibility determination takes less than 10 minutes without impacting their credit score. Once you become a partner, you can refer your clients three ways:
- You (or we) can direct your clients to your co-branded referral page to apply
- You can apply on behalf of your clients within your partner portal
- You can connect to our decision engine and loan option(s) via API
Automated Tools
We will provide you with a co-branded referral page and access to real-time status of your referred clients’ loans along with their next steps, giving you the tools and transparency to fully support your clients. We can also help you reach your clients using our marketing lead feature.
Alternative Financing
If your clients do not qualify for an SBA 7(a) loan, we provide access to alternative options. In the dashboard, you can toggle access to alternative loan options to complement your offerings.
Quick-Start Guide: Becoming a NEWITY Referral Partner
NEWITY’s Referral Partner Program is designed to empower brokers with a streamlined, compliant pathway for their clients to access SBA 7(a) funding and other loans. The onboarding process is fast and secure. Once approved, partners gain access to a robust portal designed to manage referrals, track loan progress, and initiate applications. Follow these steps to set up your account and start earning commission today.-
Set up your account
- Navigate to partner.newitymarket.com to get started
- Enter your email, create a password, and select an authentication method (SMS or authenticator app)
- Verify your identity via a six-digit code
- Optional: Enable biometric login for faster future access
-
Once authenticated, complete your business profile
- Provide a legal business name, structure, tax ID, contact information, and address
- Optionally, include a DBA
- Enter your name and title under “About You”
-
Configure your referral settings
- Select “Business Loans” to receive the appropriate referral agreement
- Create a custom referral code (editable)
- Optionally, upload a logo for your branded referral page
-
Finalize registration by entering banking details for referral fee disbursement. Upon submission:
- You will receive e-signature requests from [email protected] – first for a compliance review and then for the referral agreement after the compliance review is completed
- Sign the referral agreement and complete the embedded Form W-9
- Once the referral agreement is signed, expect two emails: a copy of your agreement and confirmation that your account is live
-
Your referral partnership is now active. You can log into your portal account to:
- Access your referral link
- Submit applications on behalf of your clients
- Enrolls clients in SBA 7(a) loan outreach campaigns
The Partner Portal includes four core tabs:
Home Pipeline summary, referral activity, and quick actions Leads Marketing enrollment and lead tracking Business Loans Application status, document uploads, and loan metrics Account Settings Profile management, payment info, and use permissions -
To enroll a client in NEWITY’s SBA 7(a) marketing campaigns:
- Click “Create Lead” and enter client details
- Choose whether to initiate an application or allow NEWITY to engage the client directly
- Leads appear under “Enrolled in Marketing” and migrate to “Business Loans” once an application begins
-
The Business Loans tab provides:
- A sortable dashboard of all referred applications
- Visibility into loan status, funding metrics, and client progress
- Ability to submit applications and upload documents on behalf of clients
Note: Applications initiated by clients are view-only. For access, contact [email protected]. -
To initiate an SBA 7(a) application on behalf of clients
- Navigate to “Business Loans” and then “Start Application”
- Enter loan purpose (e.g. $75k Working Capital), business details, and financials
- Add all owners and send ownership forms via email/SMS
- Once forms are completed, submit ownership details
The system will evaluate eligibility and present a prequalified loan offer. If accepted:
Upload required documents Business & personal tax returns, bank statements, and debt schedule if applicable Submit the application Once submitted, our team will begin the review process and follow up via email You will receive email updates from NEWITY’s loan team throughout underwriting. All communications originate from an ‘@newitymarket.com’ email address.
Become a Referral Partner Today
Become a Loan Referral Powerhouse
Complete the form below to connect with our partnership team and learn how you can earn up to 3% in referral fees.
"*" indicates required fields
NEWITY LLC and its affiliates are not lenders participating in SBA’s 7(a) loan program. NEWITY LLC is a lender service provider for Northeast Bank, a lender participant in SBA’s 7(a) loan program. SBA 7(a) loans are ultimately processed and approved by a lender participant in SBA’s 7(a) loan program.
All rights reserved / Privacy / Terms of Use / Terms of Application
Copyright © 2026