The SBA’s updated operating procedures for 7(a) and 504 loans became effective October 1. The changes affect underwriting and documentation, particularly for business acquisitions. Practitioner analysis says many acquisition deals will need stronger historical cash flow and a debt-service coverage ratio of at least 1.25. Why it matters: A buyer who qualified under the previous rules may face different requirements now. Before paying for a valuation or signing a purchase agreement, ask the lender which SBA procedures apply and whether the business’s documented earnings support the proposed debt.