SBA rules · SOP 50 10 8.1

Does the lender have to visit the business I am buying?

Yes, a physical site visit of the business being acquired is generally required, with an exception for virtual or non-customer facing businesses.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Site visit requirement: The lender must conduct a site visit for both the applicant and the business being acquired, recording the date of the visit and operational comments in the loan file.
Virtual business exception: For businesses operating on a virtual or otherwise non-customer facing physical location basis (such as e-commerce), the lender may choose not to conduct a physical site visit.
Required alternative documentation: If a physical site visit is bypassed, the lender must document in the file why a site visit would not materially enhance verification of operations, and it must confirm the existence and activity of the business using alternative methods such as virtual meetings or business record reviews.

The source

What the SOP says

“A site visit for the Applicant and for the business being acquired. The Lender must document in its loan file the date of the site visit as well as comments. For businesses not operating out of a physical location, the Lender must document what steps were taken to verify the operations of the Seller.

SOP 50 10 8.1, Appendix 15: 7(a) Changes of Ownership > The Lender’s loan documentation must include: (lines 5055-5062)✓ Verified

“For businesses that operate on a virtual, or otherwise non-customer facing physical location basis (i.e. e-commerce), the Lender may choose not to conduct a physical site visit. The Lender must document in the loan file the basis for determining that a site visit would not materially enhance verification of business operations and may utilize alternative methods, such as virtual meetings or review of business records, to confirm the existence and activity of the business.

SOP 50 10 8.1, Appendix 15: 7(a) Changes of Ownership > The Lender’s loan documentation must include: (lines 5055-5062)✓ Verified

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