I invested in a self-funded search deal a couple of years ago. In connection with a loan increase and modification, the lender is now asking all investors to sign a subordination agreement that includes language saying that no preferred dividends can be paid and no capital can be returned to investors until the SBA loan is fully repaid.

Does anyone know if there are SBA SOPs requiring this, or is the lender simply trying to re-negotiate the deal to lower their own risk?