SBA Places Restrictions on Use of Proceeds to Refinance Merchant Cash Advances and Factoring Agreements

The Small Business Administration has made some notable changes to its Standard Operating Procedures that go into effect on June 1. For instance, the new guidance specifically says that “merchant cash advances and factoring agreements are not eligible for refinancing” for Standard 7(a) loans, 7(a) Small loans, SBA Express loans, Export Express loans, and International Trade loans.

The new SOP is here. This was the previous SOP that did not mention MCAs.