SBA Loans in 2025: What’s New and What’s Changed

In 2025, SBA (Small Business Administration) loan programs have undergone a number of important updates. Some are procedural, some are policy shifts, and others are entirely new programs. If you’re a business owner considering an SBA loan this year, here’s what you need to know to stay ahead of the curve.

Key Changes & Updates for SBA Loans in 2025

1. New MARC Program: First-Ever Loan Program for Small Manufacturers

In September 2025, the SBA launched MARC (Manufacturer’s Access to Revolving Credit), its first dedicated program for small manufacturers (NAICS 31-33). 

• Flexible structure: MARC can be structured as either a revolving line of credit or a term loan. 

• Use of proceeds: Funds can be used for short-term working capital needs — e.g. inventory, projects, scaling, etc. 

• Complementary to 7(a) / 504: It does not replace existing SBA products but is designed to serve alongside them. 

This is a significant change for manufacturing businesses, giving them access to more tailored capital without having to shoehorn into general 7(a) or 504 formats.

2. Fee Waivers for Small Manufacturers in FY 2026

From October 1, 2025 through September 30, 2026, the SBA will waive most upfront fees for small manufacturers for 7(a) and 504 loans.

For 7(a) manufacturing loans up to $950,000, the upfront fee will be 0%. Small Business Administration

• For 504 manufacturing loans, both the upfront and annual service fees will be waived.

This temporary waiver lowers the entry cost of SBA borrowing for manufacturing firms, potentially making capital more accessible.

3. Revised Standard Operating Procedures (SOP) 50 10 8 Effective June 1, 2025

A sweeping update to the SBA’s SOP (Standard Operating Procedures) took effect June 1, 2025, bringing changes to eligibility, underwriting, and documentation requirements.

Notable updates include:

Because of this SOP update, many loan applications will face stricter checks, especially in areas like credit score, ownership eligibility, and revenue validation.

4. Overhaul of Community Advantage / SBLC Program

In May 2025, the SBA announced changes to the Community Advantage / SBLC (Small Business Lending Company) program.

• The SBA has paused expansion of new Community Advantage lenders.

• Existing Community Advantage lenders must meet enhanced financial stability standards to continue participating

• These changes respond to elevated default rates and concerns about oversight from recent years. 

If you were relying on newer Community Advantage lenders, this restructuring may affect your options.

5. Guaranty Fees Reinstated for Loans Approved After March 27, 2025

Beginning March 27, 2025, the SBA reinstated upfront guaranty fees and lender service fees for most new loans. 

• Veteran-owned borrowers applying for SBA Express loans are exempt from the fee in many cases.

• In many cases these fees can be rolled into the loan amount (i.e. financed).

If you apply after that date, factor those costs into your financial planning and loan comparisons.

6. Record 7(a) Loan Volumes, Especially in Small-Dollar Segment

SBA lending in 2025 is running near historic levels. 

• Q1 of FY2025 saw about $8.73B in 7(a) approvals, up ~38% year-over-year. 

• Q2 approvals exceeded $10 billion, one of the largest quarters on record

• More than half of 7(a) loans in early 2025 are under $150,000 — showing strong growth in small-dollar borrowing.

This trend suggests that many entrepreneurs are opting for more modest, manageable SBA loans rather than large, high-risk debt.

7. Easier Access for Expansion: Geography Test Removed

One recent rule change removes the “geography test” for expansions, easing access to 7(a) and 504 loans for businesses expanding into new locations. Forbes

Previously, some loan eligibility depended on whether a new location was within a particular zone or territory. With this test dropped, businesses have greater flexibility when expanding geographically.

What These Changes Mean for Borrowers (And How You Should Adjust)

Plan for Fees & Costs

Even if a fee waiver (e.g. for manufacturers) applies, most new SBA loans will now include guaranty and service fees. Ask your lender for exact cost breakdowns and whether you can finance the fees.

Reevaluate Your Loan Size Strategy

Because “Small Loans” now max out at $350,000, anything larger may require standard 7(a) underwriting — which is more rigorous. If your project fits under that amount, consider structuring workflows to stay within that band.

Tighten Documentation & Eligibility

• Make sure ownership is clean (U.S. citizens or permanent residents only).

• Ensure all tax returns and IRS transcripts align.

• Review your business credit / SBSS score early.

• For franchises/distributors, verify your franchisor’s certification in the updated directory.

Leverage New Programs

If you're in manufacturing, consider the MARC program or fee waiver opportunities to reduce costs and gain better terms.
If you rely on a Community Advantage lender, check whether they're still in compliance under the revised standards.

Expect More Predictability — and Tougher Underwriting

The 2025 SOP updates aim to make SBA rules clearer and more consistent. While this helps reduce lender guesswork, it also raises the bar in some areas (credit score, identity verification, etc.). Be proactive in meeting those requirements.

Summary
2025 is a pivotal year for SBA borrowing. New targeted programs like MARC, temporary fee waivers for manufacturers, and a revised SOP framework all mark a shift toward modernization and stricter risk oversight. Meanwhile, demand for small-dollar SBA loans is surging — offering opportunities for smaller businesses to get capital.

To navigate this new landscape: know your eligibility, factor in fees, choose the right loan size, and lean on newer programs if they match your industry. If you like, I can help you build a 2025 SBA Comparison Chart or an updated SBA Loan Checklist for this year