SBA SLPC directive from its August 28, 2026, Weekly Update

"Please note that when submitting loan applications for borrowers with an EPC/OC structure, the financial statements should be consolidated for the two entities, as SBA views the EPC and OC as a single economic unit for the loan application. The EPC’s only source of income is usually the rent paid by the OC, which should not exceed the debt service; individual statements do not show true cash flow. Lenders need to combine the statements and eliminate the internal rent expense and rental income to assess the true Debt Service Coverage Ratio (DSCR) of the combined entity.”

The system has been updated to allow edits on each row of a Consolidated Statement.  Simply click into the row and select the "Unlink from Ventures data"