SBA rules · SOP 50 10 8.1
Is there a minimum credit score for an SBA loan?
No, the SBA does not mandate a minimum credit score for 7(a) or 504 loans.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- 7(a) Small loans: Lenders may use credit scoring models permitted by their primary Federal regulator consistent with their non-SBA commercial loan policies, provided the model does not rely solely on consumer credit scores, but must record the score and their own acceptable approval range in the credit memorandum.
- SBA Express loans: Lenders may use business credit scoring models that are statistically validated to predict performance and consistent with their non-SBA practices, but the model cannot rely solely on consumer credit scores.
- Standard 7(a) and 504 loans: Lenders and CDCs are required to obtain and analyze personal credit reports for principals and guarantors to evaluate credit history and address issues, but the rules do not establish a minimum credit score.
- Credit not available elsewhere: A lender or CDC cannot cite the applicant's inability to meet a conventional credit score policy as the sole justification that credit is not available elsewhere.
The source
What the SOP says
“If a scoring model is used, the results (e.g., score) must be stated in the credit memorandum along with the acceptable approval range.
“The Lender may use a scoring model that combines the Applicant and guarantors as long as its use is permitted by its primary Federal regulator, it is used for its similarly-sized, non-SBA guaranteed loans, and the model does not rely solely on consumer credit scores.
“Lenders may use a business credit scoring model (such a model cannot rely solely on consumer credit scores) to assess character, reputation, and credit history of the applicant and/or repayment ability if they do so for their similarly-sized, non-SBA guaranteed commercial loans.
“Review and analyze the Applicant(s)’ owner(s), and Guarantor(s) personal credit reports and discuss any credit issues.
“CDCs are required to obtain and review personal credit reports for all guarantors and individual affiliates who are guarantors, and individual co-borrowers; business credit reports are not required.
“The SBA Lender may not cite the Applicant’s inability to meet the SBA Lender’s or Third Party Lender’s conventional credit score policy as the sole reason that credit is not available elsewhere.
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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.