We are updating Microsoft Loop so that any Entra ID user with OneDrive or SharePoint storage will be able to create Loop workspaces, unless blocked by Cloud Policy. This change aligns workspace creation permissions with existing permissions to create Loop components and pages, simplifying the overall experience.

[When this will happen]

General Availability (Worldwide): We will begin and complete rollout in mid-February 2026.

[How this affects your organization]

Who is affected:
This change applies to all Microsoft 365 tenants.

What will happen:

• Users blocked by Cloud Policy (“Create Loop workspaces in Loop” = Disabled): These users will continue to be unable to create Loop workspaces. Cloud Policy will remain the only method to prevent workspace creation.
• Users with Microsoft 365 E3/E5/A3/A5, Business Standard, Business Premium, or Microsoft 365 Copilot licenses: No change. These users can already create Loop workspaces.
• Users without OneDrive or SharePoint storage (for example, Exchange Online Plan 1 or Plan 2): No change. These users still cannot create Loop workspaces because they have no storage location.
• All other users (for example, Office 365 E1/E3/E5, Microsoft 365 F1/F3): These users will be able to create Loop workspaces. This message replaces MC1184645.

[What you can do to prepare]

No action is required. However, you may want to:

• Review your organization’s Cloud Policy settings to ensure that users who should not create Loop workspaces have the “Create Loop workspaces in Loop” policy disabled.
• Note that assigning or removing the Microsoft Loop service plan will no longer control workspace creation.
• Communicate this change to your help desk or support staff.
• Update internal documentation related to Loop usage.

Learn more:

• Admin policies for Loop components and Loop workspaces | Microsoft 365 | Microsoft Learn
• Summary of governance, lifecycle, and compliance capabilities for Loop | Microsoft 365 | Microsoft Learn

[Compliance considerations]

Loop workspaces may require data lifecycle management workflows. Review the Summary of governance, lifecycle, and compliance capabilities for Loop to confirm your policies meet your organization’s needs.