SBA scraps Biden-era loan rules, returns to stricter underwriting standards

The Small Business Administration is getting rid of Biden-era underwriting standards that let lenders use their own criteria to make SBA loans. It's the latest in a series of loan-program changes made by the agency under the Trump administration.

Under President Joe Biden, the SBA aimed to boost number of loans issued by allowing banks to use their own underwriting criteria, instead of a universal set of criteria provided by the SBA. That change included getting rid of the SBA's Franchise Directory, a list of franchises that qualified for SBA loans.

The SBA said in a statement it was restoring the old rules as part of an effort to restore the SBA loan programs to long-term financial success. The new standards, effective June 1, are available to read on the SBA's website.

The agency also recently raised fees it and lenders could charge under its 7(a) program. The new fees, which apply to all new loans after March 27, could result in thousands of dollars in extra costs for small-business owners, depending on size and maturity.

https://www.bizjournals.com/seattle/news/2025/04/23/sba-ditches-biden-era-loan-underwriting-standards.html