Glossary · Doing the deal
Material Change
In short
Any significant alteration to the terms, conditions, or facts of a loan transaction that could affect the SBA's risk or the lender's decision. This requires SBA approval.
What it means in a deal
After your loan is authorized, any major change – like a shift in ownership, a decrease in purchase price, or new liabilities – is a material change. You must inform your lender immediately. Failing to disclose a material change could jeopardize your loan approval and SBA guaranty.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Material Change
- Can a lender approve a material change to collateral without prior SBA approval?
- What constitutes a 'material adverse change' that could affect my loan approval after application?
- What constitutes a "material change" to a 7(a) loan that requires prior SBA approval during servicing?
- What defines a "material change" to collateral that requires prior SBA approval for a 7(a) loan?
- What constitutes a 'material change' to a 7(a) loan that always requires prior SBA approval during servicing?
- What constitutes a "material change" to a franchise agreement that necessitates re-review by the SBA for eligibility?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.