
SBA Rule Changes: Impact on Small Business M&A
The SBA’s recent rule changes are reshaping small business M&A by tightening lending standards, shortening recertification timelines, and altering eligibility for government set-aside contracts. These updates—effective now with key provisions hitting January 17, 2026—are extending deal timelines, raising equity and credit requirements, and pressuring contractors to close transactions before losing set-aside status. While the rules create hurdles, they also favor small-to-small acquisitions, which can preserve contract value and competitive advantages.












