SBA SOP 50 10 8
SBA loans cannot refinance a merchant cash advance
Owners still hear that an SBA loan will take out the merchant cash advance and kill the daily debit. As of 1 June 2025, that is not what SOP 50 10 8 allows on the 7(a) programs named below.
What SOP 50 10 8 says
The SBA's SOP 50 10, Lender and Development Company Loan Programs, version 8, took effect 1 June 2025. On 22 April 2025, deBanked reported the change: merchant cash advances and factoring agreements are not eligible for refinancing on these programs:
- Standard 7(a)
- 7(a) Small
- SBA Express
- Export Express
- International Trade
Use-of-proceeds bar only
The restriction is about how those 7(a) proceeds may be used. It is not a statement that a CDC/504 loan is barred. We do not stretch the cited language past the programs deBanked named and the SOP use-of-proceeds rule. If a file needs a 504 conversation, that is a different product and a different underwriting path.
What this means for an MCA file
A 7(a) takeout of the MCA is not the path. If we talk refinance, we mean a real take-out the cash flow can hold. Not an SBA 7(a) the rules do not allow. Not another MCA labeled consolidation. See refinance a merchant cash advance and stacked merchant cash advances.
Daily ACH still hits. Getting out is still a file: the contracts, the stack, the liens, and a payment the operating account can actually service. Read when daily ACH is draining the operating account and how to get out of a merchant cash advance.
A dedicated team works the file
St. Germain Strategy is an advisory firm. You get capital markets, cash-flow, and negotiation on the same file. We are not a law firm and we do not provide legal advice. We are not a debt settlement company. We do not hold client funds. We do not file SBA applications as the lender. US business owners only. More on the firm.
Related: How we work a file · MCA debt relief · Business debt relief
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If someone sold you an SBA takeout of the MCA, put the file on the table: the advances, the ACH, the liens, and whether a real take-out still exists.
FAQs
Can an SBA 7(a) refinance a merchant cash advance?
Not as of 1 June 2025. SOP 50 10 8 says merchant cash advances and factoring agreements are not eligible for refinancing on the named 7(a) programs.
Which programs does the SOP language cover?
Standard 7(a), 7(a) Small, SBA Express, Export Express, and International Trade. That is the list deBanked published on 22 April 2025.
Does this mean SBA 504 cannot refinance an MCA?
This page does not claim that. The cited bar is a use-of-proceeds restriction on the 7(a) programs named above. CDC/504 is a different program.
Is another MCA a way around the SBA rule?
No. Another merchant cash advance is stacking, not take-out. It multiplies the daily debit. It does not replace the SBA path the SOP closed. Read stacked merchant cash advances.
If I have an MCA, can I still get an SBA loan for something else?
Having an MCA and using SBA proceeds to refinance that MCA are different questions. This page is about the refinance use-of-proceeds bar. Eligibility on a new SBA loan is a lender and SBA question, not a consulting promise.
Do you file SBA applications or hold client funds?
No. We are an advisory firm. We are not a lender, not a law firm, and not a debt settlement company. We do not hold client funds.
St. Germain Strategy is an advisory firm. We are not a law firm, we do not provide legal advice, and we are not a debt settlement company. We do not hold client funds. When a file needs licensed counsel, we will say so and help you prepare to work with them.
