SBA loans don’t have official credit score requirements. But to obtain financing for your business, you’ll typically need a minimum credit score—it just might be set by the individual lender.

The SBA has also recently changed its funding requirements, so new borrowers should know what lenders expect before applying. That said, these are the typical credit-based criteria for different SBA loans, the importance of credit, and tips to improve your credit profile as a small business owner.

Why credit scores matter for SBA loans

SBA loans are business loans partially backed by the U.S. Small Business Administration. Some, like SBA 7(a) loans, are guaranteed between 50% and 90%. Even with this partial government guarantee, lenders still evaluate risk carefully.

Checking a borrower’s credit score and history is part of the standard underwriting process. A higher score generally means the individual is more likely to pay back what they owe. The better the credit, the lower the risk to the lender.

Lenders may check the borrower’s personal credit score when determining whether to offer financing. A FICO credit score of 670 or above is generally considered “good” credit.

Be aware that business credit, which is often used for larger or mature businesses, may also be used to evaluate your application. As of July 2025, the minimum FICO Small Business Scoring Service (SBSS) score for some SBA loans is 165. This is up from 155.

Minimum credit score requirements by SBA loan type (2025 estimates)

There are multiple types of financing available for your business, from the popular SBA 7(a) loan to Disaster loans. Credit score requirements for these loans depend on the lender and loan type, but these are the typical minimums.

SBA 7(a) Loan

SBA 7(a) loans offer small business owners a way to finance things like commercial real estate, furniture, and machinery. Funds can also be used to refinance business-related debt or as working capital.

Several types of SBA 7(a) loans exist, including:

  • Standard 7(a) loans—these range from $350,001 to $5 million and have a 75% SBA guarantee
  • 7(a) small loans—these cap out at $350,000 and have between a 75% and 85% guarantee, depending on the financed amount
  • SBA Express loans—eligible business owners may take out up to $500,000 with a 50% guarantee

Other 7(a) loan programs include the Export Express Loan program, Export Working Capital Program, CAPLines program (a business line of credit), and the International Trade Loan program. Maximum amounts, percentage guarantees, and collateral requirements vary.

Typically, borrowers must have a minimum personal credit score of 650 to qualify for an SBA loan. The minimum SBSS score is 165.

SBA loans are more flexible with strong financials—that is, the ability to demonstrate steady, high business cash flow. Having collateral may also help offset a lower credit score.

SBA 504 Loan

An SBA 504 loan is one that’s jointly funded by a Certified Development Company (CDC) and a traditional lender. They cap out at $5.5 million, with some exceptions.

These loans are similar to the 7(a) program, but can be stricter if real estate is involved. Funds can only be used for specific purposes, such as purchasing land or new facilities.

In exchange for funds, the lender will place a first lien on the real estate property, while the SBA places a second lien on it. Sometimes, collateral is also required. Again, there are no preset credit score requirements, so shoot to have a score of 650 or above.

SBA Microloan

SBA microloans come in smaller amounts up to $50,000. They’re flexible in that business owners can use them for things like working capital, furniture, equipment, machinery, and inventory or supplies. However, they can’t be used for real estate or debt repayment.

It’s possible to get a microloan through a qualified nonprofit, community-based organization. Borrowers may qualify with a strong business plan, solid financials, mentoring, and a lower credit score of around 620.

Economic Injury Disaster Loans

The SBA’s disaster loans are geared toward small businesses that have suffered economic damages due to a declared disaster. Minimums vary but cap out at $2 million (when combined with a physical disaster loan). Exact amounts are based on the business’s financial needs in relation to the disaster.

While disaster loans have no specific credit score requirement, lenders may consider the borrower’s financials and overall credit. Collateral is required for loans exceeding $50,000.

What lenders look for — beyond the score

SBA loan requirements, including business loan credit score, can vary by lender. This is true even of SBA-backed programs.

Since every SBA loan program has its own criteria, it’s important to do your research. It also helps to have a strong overall financial and credit profile before applying.

Beyond that, these are some things lenders often look for besides your credit score:

  • Overall credit profile, including payment history, credit utilization, and length of credit history
  • Recent delinquencies or bankruptcies on your credit report
  • Overall financial health of your business (including cash flow and debts)
  • Solid business plan and clear financial statements
  • Owner’s invested equity in the business
  • Collateral (such as business real estate)

Having a down payment could also help you qualify. Know that SBA loans generally have lower down payment requirements than other forms of business financing.

Applying for a larger loan may also require a larger down payment, stronger financials, or higher credit score. It all depends on the lender and program.

How to improve your credit score before applying

With SBA loans, credit score matters. If yours needs some work, here are some tips to improve your credit score.

  • Check your personal and business credit reports—and dispute any errors bringing down your score
  • Pay down outstanding balances—personal and business
  • Avoid new credit inquiries before applying—a hard inquiry can cause your score to drop by up to five points
  • Work with a credit advisor if needed

Try to wait until your credit score reaches at least 650 before applying for an SBA loan. This will increase your approval odds—but remember, some lenders will still work with borrowers with a lower score.

Can you still qualify with a low credit score?

It’s possible to get a business loan even with a lower credit score. SBA lenders may work with borrowers who have:

  • Strong cash flow (boost your business revenue!)
  • Valuable collateral or a large down payment
  • Been in business for several years or more
  • A co-signer or guarantor
  • Significant business equity

If you don’t qualify, consider an alternative SBA lender or microloan instead.

Credit is a key part of the equation

When it comes to getting an SBA loan, your credit score is important. But it’s not the only factor. Having a business with strong financials, proven longevity, and a solid plan could help you qualify for financing.

Review your business (and personal) financials and credit holistically. Taking the time to prepare can boost your approval odds and maximize your overall success.

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