Small Business & Franchise — 2026-08-26
The SBA is actively soliciting public comments on a proposed overhaul of size standards for 338 industry groups, which could significantly expand loan and contracting eligibility for small businesses. Simultaneously, new Standard Operating Procedures (SOP) for the 7(a) loan program are set to take effect on October 1, 2026, introducing changes that will reshape business acquisition financing. On the franchise front, major M&A activity continues with significant brand conversions and real estate acquisitions reported across the industry.
Small Business & Franchise — 2026-08-26
Key Highlights
- SBA Proposes Size Standards Overhaul: The SBA has published a notice of proposed rulemaking for new size standards across 338 industry groups, aiming to better reflect market realities and expand eligibility for federal programs.
SBA logo representing the proposed rulemaking - Federal News Network Covers SBA Rule Changes: Published just hours ago, an article details the ongoing effort by the SBA to "right-size" small business rules, noting the difficult balance between simplification and maintaining integrity across administrations.
Small business administration context image - New SBA 7(a) SOPs Effective October 1: A law firm analysis highlights five key changes in the newly issued SOP 50 10 8.1, effective October 1, 2026, which will impact how lenders and development companies handle business acquisitions.
Legal and financial context for SBA changes - REMAX Expands via Brokerage Conversions: REMAX announced the conversion of two brokerages, including one of Royal LePage’s largest independent franchises, marking a significant move in the real estate franchise sector.
Franchise news logo - Sprout Realty Acquires 24Fifteen Realty: Sprout Realty ERA Powered acquired Dallas-based 24Fifteen Realty, adding two offices and nearly 100 agents to its network in the DFW Metroplex and Waco areas.
Policy & Funding Watch
- Proposed Size Standards for 338 Industries: The SBA proposes new size standards for 338 industry groups. This change is designed to better reflect the nature of markets where small businesses compete, potentially altering who qualifies as "small" for SBA loans and contracts. Comments are currently being sought.
- Revised Size Standards Methodology: Concurrently, the SBA released a revised white paper explaining its methodology for establishing and modifying size standards. This provides transparency into how future adjustments will be calculated and applied across different sectors.
- SOP 50 10 8.1 Effective Date: The new Standard Operating Procedure for Lender and Development Company Loan Programs (7(a)) becomes effective on October 1, 2026. This update includes specific changes that may affect the structuring of business acquisition loans.
Franchise Spotlight
- REMAX: REMAX is aggressively expanding its footprint through the conversion of existing brokerages rather than just net-new openings. The recent acquisition of a top Royal LePage independent franchise signals a shift toward consolidating high-performing existing operations into the REMAX system.
- Better Homes and Gardens Real Estate: The Good Life Group acquired Don Peterson and Associates, further demonstrating the trend of larger franchisee groups absorbing smaller independent brokerages to achieve scale and brand alignment.
- Del Taco: The brand has officially entered a "new chapter," indicating a strategic pivot or significant operational overhaul, though specific financial details were not disclosed in the brief announcement.
Owner Success Stories
- Expedia Cruises: Entering the second half of 2026, Expedia Cruises is building momentum through continued franchise expansion and strategic technology investments, positioning the brand for sustained growth in the travel sector.
- Riser Fitness / Club Pilates: While announced earlier in 2026, the impact of Riser Fitness's agreement to open 127 Club Pilates locations over five years continues to dominate multi-unit news, showcasing a major operator's commitment to nationwide expansion in California and beyond.
Club Pilates studio expansion context
Market & Capital Pulse
The funding environment remains dynamic with the SBA actively redefining eligibility criteria for its primary loan programs. The upcoming October 1 effective date for the new 7(a) SOPs suggests lenders are preparing for structural changes in how acquisition capital is deployed. Meanwhile, private equity and large franchisee groups continue to drive M&A activity, particularly in real estate and wellness sectors, as seen with the Jiffy Lube acquisition by Monomoy Capital Partners (expected to close H2 2026) and various real estate brokerage consolidations.
What to Watch Next
- October 1, 2026: Effective date for SBA SOP 50 10 8.1, bringing changes to 7(a) loan programs.
- SBA Comment Period Deadline: Monitor the Federal Register for the deadline to submit comments on the proposed size standards for the 338 industry groups.
- Jiffy Lube Deal Closure: Expected to close by the second half of 2026, subject to customary regulatory approvals.
- American Franchise Act: Industry advocacy groups are pushing for the passage of this act to secure the franchise model, a legislative item to watch in the coming months.
Reader Action Items
- Review Industry Size Standards: Check if your NAICS code is among the 338 groups affected by the proposed SBA size standard changes to determine if you might gain or lose eligibility for certain benefits.
- Consult with SBA Lenders: If you are planning a business acquisition, speak with your SBA lender now about the implications of the new SOP 50 10 8.1 taking effect in October.
- Monitor Real Estate Franchise Deals: If you are an independent real estate broker, evaluate the competitive landscape given the aggressive conversion strategies by REMAX and other major brands.
- Submit Public Comments: If the proposed size standards affect your business operations or eligibility, consider submitting a comment to the SBA during the open period.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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