SBA Rule Changes on Merchant Cash Advance Debt: What Small Businesses Need to Know in 2025

SBA Rule Changes on Merchant Cash Advance Debt: What Small Businesses Need to Know in 2025, updated 9/30/25, 7:20 PM

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Changes made by the Small Business Administration earlier this year are leaving some companies with merchant cash advance debt in the lurch. The solution might be simpler than you think.

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SBA Rule Changes on Merchant Cash Advance
Debt: What Small Businesses Need to Know in
2025
Thousands of businesses are reeling from new SBA
rules on merchant cash advance (MCA) debt.
Effective June 1, 2025, SBA 7(a)
loans can no longer be used to
refinance MCAs or factoring
agreements.
The change came in response to high default rates, with many companies repeatedly
refinancing MCA debt.
While intended to reduce defaults, the new policy
leaves struggling businesses with fewer relief
options.
Attorneys with financial expertise can help companies
tackle MCA debt without adding to their burdens.
According to MCA Reduction Group, negotiation remains the most effective path to debt reduction
under the new rules.

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