SBA loan requirements vary depending on the lender and individual loan scheme. In general, however, you need to meet certain requirements from the US Small Business Administration – to work in a competent industry – and to qualify for these you must have good credit and strong financing. Small business loans.

Here is what you need to know about SBA loan requirements and the application process

General SBA loan requirements

Whatever yours SBA lender Or loan program, you must meet a list of eligibility requirements, including:


  • A for-profit business must be officially registered and operated legally.

  • Must work in a competent industry.

  • Certain types of business are not allowed SBA loans, Including businesses involved in lending activities, the main activity of which is gambling and any business with churches and other religious organizations.


  • Must be physically present in the United States or in the United States and may be doing business or making a business proposal.


  • As a business owner, like time or money – you need to invest fairly in the business.

The need for financial support

  • Before switching to an SBA loan, you should try to find alternative financing options.

  • Loans must be able to show interest.

  • He must be able to show the “healthy business purpose” he intends to use.

Business size

  • It must be a small business, according to the SBA. The minimum definition varies according to industry and is generally expressed in the number of employees or the average annual receipts. SBA gives one Interactive device It will help you determine if you meet this requirement.

Business Behavior

  • It cannot be transferred to any existing government debt obligations.

  • No one who owns 20% or more of the business may currently be in custody, probation, probation or criminal proceedings.

SBA loan writing requirements

SBA does not set minimum standards to assess your credit eligibility, but lenders must analyze your application to make sure you can repay this. Government business loan.

Here is what the lender will use to assess your eligibility for an SBA loan –

Personal loan history

Normally you should have good credit – a score of 690 or higher. Again, the SBA credit score does not determine the minimum, so you may have some flexibility depending on your lender and other qualifications.

Business Credit History

You want to have a strong business credit history similar to your personal credit. In many cases, SBA uses the FICO Small Business Outcome Service or SBSS to review your business credit history and preview 7 (a) loan applications.

You will now need to receive 155 or more results to pass the preview screen – results range from 0 to 300. The lender may choose to continue with your application, even if it does not pass the screen. However, lenders can lower their SBSS scores lower than SBA.

Time in business

Although some lenders work with new businesses, most require you to have two or more years in business.

Business Finance

You need to show strong annual income and cash flow forecasts. You do not have to owe a lot of money to cover this extra cost. You want to have a debt service ratio (also known as DSCR) that compares your current operating income with your current debt obligations – 1.15 or more.


For many SBA loan programs, lenders are required to secure a completely secure loan when possible. Acceptable Types of containers Includes real estate, equipment and supplies. Lenders cannot refuse loan applications simply because they do not have enough credit.

SBA loan application requirements

To submit your SBA loan application, you will be asked to provide extensive documentation. Some of these requirements vary depending on your lender and your loan program, but here are some of the most common documents and forms you need to provide.

  • SBA Form 1919, Borrower Information Form.

  • SBA Form 912, Personal History Statement.

  • Personal Financial Statement (you can use SBA Form 413).

  • SBA Form 148, unconditional guarantee (or equivalent of the lender). SBA requires unlimited personal security for anyone who owns 20% or more of the business. Owners of less than 20% can be given a full or limited warranty (SBA Form 148L).

  • Business statements such as income statements, formulas and cash flow forecasts.

  • Warranty Details Program.

  • Existing debt program, if applicable.

  • Business certificates or licenses.

  • Credit application history.

  • Continued for each business owner.

  • Business Overview and History.

If you are using your SBA loan to buy an existing business or Buy real estate, You will have additional application requirements, such as purchase agreements and reviews or business estimates.

Program-specific requirements

Some SBA loan programs have special requirements.

The SBA 7 (a) loan program covers several different types of loans. Requirements are balanced throughout 7 (a) Loans, With some special circumstances. For example, SBA CAPLines credit should be used for short-term or current business capital needs.

There are four types of loan lines: Current CAPLine, Contract CAPLine, Builders CAPLine and Active CAPLine. Borrowers must meet income-related requirements (for example, being able to demonstrate current activity) in addition to standard 7 (a) requirements.

SBA 504 / CDC Loans It can only be used to finance real estate purchases, such as real estate and large appliances. S.B.A. It also requires that 51% of any real estate you buy be financed – and 60% for new construction.

SBA microns, On the other hand, it can be used for a variety of purposes, but it cannot be used to pay off existing debts or buy real estate. These smaller loans may have more flexible eligibility requirements for intermediaries – such as nonprofits – and other SBA lenders.

Find and compare small business loans

If SBA loan is not right for your business, or you want to compare loan options, NerdWallet has a list of the best small business loans for business owners. All of our recommendations can help you make the right financial decision based on the lender’s market share and track record and the needs of the business owners as well as rates and other factors.