Getting a business loan can be the difference maker when starting a new venture or even expanding upon an existing offering, and there’s significant funding available to qualify businesses. In fact, the Small Business Administration (SBA) approved over $31 billion through its 7(a) loan program in 2024 alone.
But this money doesn’t come without some work on your part, and most reputable business loans require documentation of your creditworthiness and ability to repay. Whether you’re trying for an SBA loan or another funding option, you’ll need to provide the proper paperwork to back up your case.
Why preparation matters in the loan process
Having your documents complete and organized can significantly speed up the approval process. Without them, you could experience an unnecessary delay or even decline (even if you’re otherwise well-qualified). For each piece of missing or unclear documentation, the lender needs to reach out at least once, and too many back-and-forths could leave your loan in limbo.
Worse yet, a messy or incomplete set of loan documentation may give the lender the wrong impression. It’s more likely that you’ll hand over incorrect calculations or outdated tax papers instead of what’s needed to prove your profitability and get the “yes” you really need.
There’s no one-size-fits-all application packet you can use to apply for multiple loans, but many of the required documents will be the same from lender to lender. Whether this is your first loan attempt or your third, this loan application checklist can help you save time and frustration in your funding journey.
The ultimate small business loan checklist
Even if you’re not looking to borrow money just yet, having these essential documents handy can reduce preparation work when the time comes.
Business information
Legal business name: The official, registered name of your company and any “doing business as” (DBA) names, if applicable. You can find this on your state or local business registration documents.
Business address and contact info: The physical location and primary contact details for your company, as listed on company records, utility bills, or vendor statements.
Business structure: Listed as Limited Liability Corporation (LLC), S-Corp, C-Corp, partnership, or sole proprietor in your incorporation documents or state registration filings.
Employer Identification Number (EIN): This IRS-assigned tax ID number can be found in your confirmation letter or online IRS account.
Business license and registrations: These are usually given by your local, state, or federal licensing authority, depending on your business type.
Loan request details
Consider how much and what kind of loan you’ll need before you apply. You’ll need to provide:
Loan amount requested: The specific dollar amount you wish to borrow, including any fees.
Intended use of funds: A brief explanation of how you’ll spend the money, including hiring, new equipment, or working capital.
If you know your desired repayment terms, you can list them as well. (Refer to the lender’s term sheet, if available.)
Personal information
In addition to the company’s information, you’ll need to provide information for the owner or sole proprietor. This often includes:
Government-issued ID, such as a driver’s license or passport.
Social Security Number, to help in the credit check process.
Personal address and contact phone number.
Ownership percentage, which can be found in the operating agreement or company bylaws.
Personal finance statement, or a summary of your personal assets, liabilities, income, and expenses, is found within your personal finance software or bookkeeping tools.
Business financial statements
These essential financial statements show the bank how you’re doing and your prospects for the future. You can usually find them in your accounting software or request them from your accountant.
Profit & Loss Statement: Covering the last 1-2 years, this should show revenue, expenses, and net income over a period.
Balance sheet: This rundown of assets, liabilities, and equity is a snapshot of a certain date and
Cash Flow Statement: It reports the money flowing in and out of your business during a set time.
Year-to-date financials: The most current financial data for the ongoing year, plan to run this right before you apply.
Tax returns
Include both a set of your business and personal tax returns, which you can get from your accountant or tax preparer.
For business: Show the last 2 years, including any forms that show income, expenses, and liabilities.
For personal: Show at least a year for each of the major owners or partners.
Provide three to six months of bank statements for all accounts tied to your business. Small proprietors or very small businesses should have personal bank statements available, as well.
Business plan
Startups and those applying for SBA loans should be prepared with a business plan, which contains, at a minimum, the following sections:
Executive summary: This short overview states your business purpose, goals, and the plan for the loan request.
Business model and revenue strategy: Describe how your business makes money and uniquely serves customers.
Competitive analysis: This gives an overview of competitors with similar offerings and how you’ll compete against them in the marketplace.
Financial projections: A forecast of future revenue, costs, and profits, it’s usually created for the next three to five years and can be prepared with your accountant.
Use of funds breakdown: This detailed list shows how the loan money will be spent, dollar by dollar.
Debt schedule
Most businesses owe at least some money on credit cards or with previous loans. These documents demonstrate this, so lenders know what type of risk they will be taking. Include all current business debts, including current loans and credit lines, the lender names, balances, monthly or quarterly payment amounts, and due dates.
Additional documents (depending on loan type)
Different loans have varying requirements. Consider having this paperwork available just in case:
Accounts receivable aging reports: These detail unpaid customer invoices by date and can be found within your accounting software.
Commercial lease agreement: If you rent space, you’ll need to provide a signed lease from your landlord to establish your business’s right to operate at your location.
Equipment invoices or quotes: Requests for equipment financing require these, which you can get from your equipment seller or dealer.
Articles of incorporation or partnership agreements: These legal documents establish your company or partnership and show the ownership structure. Request them from your state filing authority or your business legal professional.
Special considerations for SBA Loan requirements
SBA loan amounts can be higher, so the application process is often more document-intensive. Be prepared to show a higher level of detail with thorough financial disclosures than what you may need for smaller loans through private lenders.
There’s no standard SBA checklist, since lenders administer the loans in their own way, but expect to provide standard information on certain SBA-specific forms, such as Form 1919 (Borrower Information Only) and Form 413 (Personal Financial Statement).
Personal and business credit scores can carry more weight than with other lending programs, so take the time to check your score before you apply and resolve any outstanding issues that could hold you back from an approval. Also, SBA loan requirements often include a business plan. You can read up on how to create one in our step-by-step business plan guide.
Tips to streamline the application process
Since you’ll be asked to provide your most updated copies of each document, it may be helpful to digitize (scan or download from each website) before applying. This way, you don’t have to rummage through paper stacks and can quickly send documents to the lender via their secure online processes. Also:
Store your documents in a secure cloud folder with two-factor authentication (2FA) so only you can access it.
Update your documents and financial calculations each month to keep them accurate and available.
Work with your accountant or CPA to validate numbers before sending to a lender.
Check your credit reports well in advance of applying, so you have time to dispute or fix any errors.
Set yourself up for success
A business loan opens the door for expansion and new opportunities, and – in some cases – it may be just what you need to stay afloat in uncertain times. No matter what you intend to use the money for, loan approval depends on not just what you ask for, but how well-prepared you are to ask for it. Referring to this checklist early and often can reduce the number of surprises that arise during the application process and can keep your loan request moving as quickly as possible through what can be weeks or even months of qualification.
An SBA loan may be just what you need to level up your business and stay competitive. While having a strong credit score improves your chances of qualifying and getting better loan terms, some lenders allow flexibility. It’s possible to get approved even with bad credit in some cases.
However, understanding SBA loan requirements can greatly improve your chances of hearing “yes” from a lender and can cut down on application time. This article covers the different loan types, minimum requirements, and steps you can take to improve eligibility, even if your credit is less than ideal.
Can you get an SBA loan with bad credit?
It’s true that a better score often leads to better credit terms, but approval can also depend on these factors:
The specific loan program or type of loan you’re applying for
The lender’s internal lending rules and policies
Business characteristics such as your time in business, demonstrated success, and cash flow
Whether you can put up large amounts of collateral
Your specific credit issues (amounts owed, late payments, bankruptcies, etc.)
Because multiple factors play into how a lender assesses risk, there’s not a one-size-fits-all list of things to aim for. A business that’s lacking in creditworthiness may make up for it with a proven business plan and valuable collateral to secure the loan. Lenders look at the full picture, not just a credit score.
Best SBA loan programs for borrowers with bad credit
If your business got off to a rocky start or you’ve made some missteps in the past, you’re not shut out of financing. In fact, lenders report that a business’s overall financial position is the main thing they look at, not credit history.
Because the individual lenders (banks, neobanks, credit unions) set additional requirements, on top of general SBA loan requirements, for their institutions, you may do best by shopping around. Here are the general loan options available to help you get started.
This SBA loan program focuses on underserved communities and startups, which often face unique challenges in starting and keeping a business going. The minimum credit score for these loans is typically around 620. (Although, because lenders each set their own internal guidelines, this can vary slightly.)
The maximum amount businesses can borrow through the program is $50,000, making this a better option for improvements, working capital, supplies, or equipment. The loan funds cannot be used for paying off debt or purchasing real estate, and average around $13,000 per loan. Plan to demonstrate creditworthiness with a strong business plan and a willingness to work with a technical assistance partner to improve your chances of approval.
This loan is admittedly a bit more difficult for those with bad credit to access. If you can show business strength, your chances improve. Things lenders may use to offset a low credit score include:
Strong collateral (property, equipment) that can be used to secure the value of the loan
Solid business cash flow
Demonstrated history of being successful in your business for multiple years
Established businesses may achieve better results than startups and those without a proven track record of profitability.
Key requirements to offset poor credit
The saying, “credit isn’t everything,” may be true when it comes to SBA loans, as long as you can show lenders your other business strengths. Any or all of the following can work in your favor and help a lender overcome objections to past late payments, bankruptcies, and defaults.
Time in business, especially if longer than two years
Consistent revenue, increasing month over month
A positive cash flow, with few if any annual losses
A well-prepared business plan that shows your goals, details for improving profits, and plans for expansion (if applicable)
A detailed explanation of how you’ll use the funds and pay the loan back over time
Collateral, such as property, or personal guarantees of how you will cover the value of the loan in the event of an unforeseen business decline
Lenders generally don’t want to see recent bankruptcies, tax liens, or defaults on federal loans. If you have these on your credit report from years ago, be prepared to show evidence of how you’ve overcome or changed course.
Tips to improve your SBA loan chances with bad credit
Your credit score is a constantly changing metric that can show a bank you’re responsible enough to take on new credit. Because it changes often, there are steps you can take to improve it for the near future, possibly in time for your next SBA loan application.
Actions to take include:
Pay off existing debts, or pay down as much as you can in the short-term
Check your business and personal credit reports, correcting any errors you find
Build your business credit, which can be used if your personal credit is weak
Partner with a business advisor or community lender, who may be more open to businesses in your situation
Start with a small loan (such as a microloan) and borrow only what you need
Alternative paths if SBA loans aren’t an option yet
If, despite your efforts, you’re still not in a position to qualify for an SBA loan, you may still have choices.
Secured business credit cards require you to put down a cash deposit or collateral to access a line of credit, but they do offer credit benefits and liquidity you can use to grow your business.
Revenue-based financing and invoice financing agreements are like mini loans from the companies you get supplies and inventory from; they allow you to pay for your products in increments, instead of all at once.
Even small, short-term loans can build your repayment history and put you on track for a better credit score. This newer score may put you in the driver’s seat for a better, bigger SBA loan down the road.
Credit isn’t everything
Can you access a business loan with poor credit? In some cases, yes! But being informed is part of the hard work needed to be sure you get the best terms possible. Come prepared with all the documents and a proper strategy for how you’ll use the money.
While you may not get approved for the full amount of your loan request, 28% of small businesses still get partial funding. Finding a lender that frequently services businesses like yours can greatly improve your chances. Ready to get started? Let Lendio help you with this first step of the journey.
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.
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.
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.
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
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.
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.
Ready to get started? Apply now with Lendio and get funded in as little as 24 hours.
Getting approved for an SBA loan is a big step and a huge relief for many small business owners. But approval doesn’t mean funds in hand. This guide breaks down what happens next, so you can stay ahead of the process and avoid delays.
If your SBA loan was just approved, take a moment to celebrate. You’ve passed the biggest hurdle in the process! But before those funds land in your account, you’ll need to complete one more important stage. SBA loan closing.
This stage is often misunderstood, especially by first-time borrowers. That’s why we believe it’s essential to provide small business owners with a clear understanding of what comes next.
So, in this guide, we’ll walk you through what happens after approval, what documents you'll need, and how long closing typically takes, so you can stay ahead and put your capital to work without delay.
Why SBA loans take time to close
SBA loans take longer to close than traditional loans because there’s more red tape. Since they’re partially backed by the government, lenders have to check every box (collateral, permits, compliance paperwork, etc.) before the funds are released.
Borrowers can support this process by staying proactive and organized, for example, by responding promptly and keeping documents up to date. This goes a long way towards avoiding unnecessary delays and keeps closing on track.
How much you’re approved to borrow, and at what rate
The repayment plan you’ve agreed to
Any collateral you’ll need to provide
Additional requirements (e.g., insurance, permits, or licenses) that must be in place before funding
It’s worth going through this letter carefully. If anything looks off or unclear, ask your lender now rather than later. A quick conversation upfront can save you time and frustration down the line.
The SBA closing process is pretty straightforward once you know what’s coming. While the exact steps vary depending on your loan and business, most borrowers go through a similar checklist:
1. Document collection and verification
Lenders often ask for fresh copies of key paperwork, even if you already submitted them earlier. This is because they need to confirm that your business still matches the terms of your approved loan.
In light of that, expect to resend things like:
Personal and business financial statements
Business licenses, permits, and insurance certificates
Proof of business structure (such as Articles of Incorporation or an LLC Operating Agreement)
Lease agreements or property-related documents (if real estate is part of the loan)
If anything is outdated or missing, your lender may pause the process. So, gathering these items in advance helps keep things on track.
2. SBA-specific documentation
After reviewing your paperwork, your lender will move on to the final SBA forms:
SBA loan authorization: This spells out the terms, things like the loan amount, interest rate, repayment schedule, collateral, and any extra conditions attached.
Proof of flood insurance (if applicable): If your loan involves real estate in a designated flood zone, flood insurance must be in place before closing. The policy must meet federal standards and name your lender (or the SBA) as the loss payee.
Environmental due diligence: If the loan includes commercial real estate (especially properties with past or current uses that may pose environmental risks), your lender may require a Phase I Environmental Site Assessment to identify any concerns.
Certification of use of proceeds (SBA form 1050): This form is required for all 7(a) loan disbursements. You and your lender must complete it at closing to confirm how funds will be used, consistent with the loan authorization. Supporting documentation (like invoices or wire confirmations) may also be required.
Other SBA forms and certifications: Depending on your loan type and business situation, you may be asked to complete additional documents, such as:
SBA Form 159 (if you paid a broker or agent)
IRS Form 4506-C (to verify business tax returns)
Hazard insurance documentation (for collateral)
Borrower certifications confirming no material changes since loan approval.
3. Legal and compliance requirements
Once the SBA-specific paperwork is out of the way, your lender will move on to the legal checks to confirm that your business is on solid legal ground and that everything meets SBA program rules.
You may be asked to:
Sign legal documents that reflect the final loan terms
Show that you’ve invested some of your own money into the business
Provide proof that your location complies with zoning laws or environmental rules
Back the loan with a personal guarantee or collateral
These steps are all about protecting both you and your lender while keeping everything above board.
Since SBA loans often require personal guarantees or assets as collateral, it’s worth understanding what happens if you default on an SBA loan and how to protect yourself.
4. Lender due diligence and final review
Right before closing, your lender will go over the details one last time to make sure everything lines up before funds are released. That could mean:
Taking a second look at the title report, especially if real estate is involved
Making sure all the collateral paperwork is in the file
Following up with any lingering questions from underwriting
It’s routine, but important because it’s how lenders protect both sides before the loan goes live.
5. Signing the closing documents
This is the part where everything becomes official. You’ll go over the final loan agreement and sign documents like the promissory note, personal guarantee, and security agreement.
However, if real estate is part of your loan, there’s usually extra paperwork involved, like a deed of trust or lien filings. Some of those documents may need to be notarized. But don't worry, your lender will tell you what’s needed and when. These days, many lenders offer digital signing options to make things easier
6. Disbursement of funds
After you’ve signed all the paperwork and your lender has done a final review, the funds can be released.
How that happens depends on your loan and what it’s being used for:
Lump sum: For some loans, such as those primarily for working capital or refinancing existing debt, the full loan amount may be disbursed all at once directly into your business bank account.
In stages (draws): For projects involving construction, major renovations, or phased equipment purchases, funds are typically released in stages. This "draw" process allows the lender to monitor project progress and verify that funds are used appropriately at each phase.
Direct to third parties: Sometimes, the funds don’t go straight into your account. Depending on your loan terms, the lender might send the money directly to vendors like equipment suppliers or business sellers, or place it in an escrow account managed by a title company. This helps make sure the money gets used exactly as approved.
The typical timeline for fund disbursement is generally within 7–21 business days after the loan closing documents are signed. While some lenders, particularly those with highly streamlined or digital processes, may be able to release funds faster, it's prudent to anticipate this timeframe.
Get ready to put your capital to work
Once you close, the hard part is behind you. Now it’s time to focus on growth. It doesn't matter whether you’re purchasing new equipment, expanding to a second location, or managing seasonal cash flow; your loan is likely the key to moving your business forward.
Interested in a SBA loan? Lendio stays in your corner every step of the way, offering tools, expert guidance, and support when it matters most. If you're planning your next big move, our team is ready to help you make it happen. Start your SBA loan application today.
A healthy credit score can open doors for business growth—whether you’re applying for financing, securing better rates, or simply keeping your financial footing strong. But for many small business owners, a less-than-perfect personal credit score can be a major roadblock.
The good news? It can be improved with time, strategy, and the right steps. We’ll cover what you need to know to improve your credit, and offer you tips on what high-impact moves you can make to start boosting your credit score today.
Do personal credit scores impact business credit scores?
Personal credit scores do affect your business credit, especially early on. Many lenders use your personal credit to evaluate your ability to manage debt, and in some cases, they’ll require a personal guarantee. That means your business's financial behavior can also impact your personal credit.
As your business matures, strong business credit habits (like on-time payments and positive tradelines) reduce the weight of your personal score. You should always expect that small business lenders will check your personal credit score on loan applications, though, so it’s important not to lose sight of maintaining your personal credit health.
Set realistic expectations about increasing your credit score fast
If you find yourself sitting in front of Google, searching “how do I raise my credit score in 30 days,” you’re not alone. Wanting to improve your credit score quickly in order to continue with your business goals is common. However, you will only become more frustrated if you have unrealistic expectations. There are often no overnight miracles when it comes to boosting your credit score. Many of the factors that determine your credit score rely on historical data. For example, payment history scoring can only improve with time.
However, there are strategic moves you can make over 3, 6, and 12 months that will create a noticeable bump in your overall personal credit score. By focusing more narrowly on high-impact changes to the factors that weigh heavily on your credit score, you can see noticeable improvements within 6 months.
Your starting credit score matters
Another factor to consider in how fast your credit score can improve is the score you’re starting with. Credit score ranges will have an impact on how fast your credit score can realistically improve in a short window.
If your score starts in the low 500s, aggressive action—like reducing debt and fixing errors—can lead to 50–100 point gains within six months. If you’re starting in the 600–700s, changes may be more gradual (e.g., 20–50 points) as your profile nears the top tier.
We’ll break down some realistic moves to improve your credit score fast in the next section.
Your timeline to better credit: what to do in the next 3, 6, and 12 months
If your goal is to boost your credit score quickly, you’ll want to start with the actions that will have the most impact based on how credit scores are calculated and your starting credit score.
What to focus on in the first 3 months
At this stage, focus on quick wins that move the needle fast: reduce utilization, make consistent payments, and correct any errors.
Score Range
Key Moves
Score Factor
Poor (300-579)
-Set up auto-pay or payment alerts -Dispute credit report errors -Pay down cards below 30%
Payment History (35%) Credit Utilization (30%)
Fair (580-669)
-Reduce credit utilization -Avoid new credit inquiries -Pay multiple times per month
Credit Utilization (30%) New Credit (10%)
Good (650-750+)
-Keep credit utilization under 10% -Pay early (before your statement date) -Maintain a clean payment record
Credit Utilization (30%) Payment History (35%)
What to focus on in the next 6 months
At this stage, you can build on your previous moves by introducing new strategies to build depth and a healthy mix into your credit profile.
Score Range
Key Moves
Score Factor
Poor (300-579)
-Become an authorized user on a trusted account -Open a secured credit card
Length of Credit History (15%) Credit Mix (10%)
Fair (580-669)
-Maintain low balances -Avoid closing old accounts -Add a different credit type (e.g., loan)
Credit Utilization (30%) Credit Mix (10%)
Good (650-750+)
-Use all accounts lightly -Review your credit report again -Age your accounts without inquiries
Length of Credit History (15%) New Credit (10%)
What to focus on in the next 12 months
At this stage, you will focus on long-term gains through consistency and diversification.
Score Range
Key Moves
Score Factor
Poor (300-579)
-Maintain all positive behaviors -Consider a credit-builder loan -Avoid new negatives
Payment History (35%) Credit Mix (10%)
Fair (580-669)
-Ask for credit limit increases -Strategically open one new account -Keep old cards active
Credit Utilization (30%) Length of Credit History (15%)
Good (650-750+)
-Push towards 760+ by optimizing mix -Keep inquiries minimal -Focus on the rate shopping advantage
Credit Mix (10%) New Credit (10%)
Assuming you take these actions at each stage of the timeline, and then continue applying best practices from each stage while building on the prior period's progress, these are the score improvements you might see after 12 months.
Starting Score
3 Months
6 Months
12 Months
Poor (300-579)
+400-100 points
+60-150 points
+100-200 points
Fair (580-669)
+20-60 points
+40-80 points
+60-100 points
Good (650-750+)
+5-20 points
+10-30 points
+20-50 points
*Estimated score gains are cumulative and assume you consistently apply credit-building strategies from earlier stages. Results may vary based on your unique credit profile, history, and financial behavior.
7 ways to improve your credit score
Regardless of your credit score or desired timeline for improvement, these tactical tips will help you improve your credit score, especially when combined consistently over time.
1. Pay every bill on time
Impacts: Payment History (35%)
Payment history is the single most important factor in your credit score. It shows that you can handle debt and be trusted to pay it back. When you miss payments by 30+ days, whether it’s a credit card, utility bill, or loan, it can have a negative effect on your credit report for 7 years, depressing your score. Paying your bills on time is by far the best thing you can do to rebuild less-than-stellar credit.
Tip: Set up automatic payments or calendar reminder alerts for minimums. Even one missed payment can cost you a lot of points if your score is already struggling.
2. Keep credit card balances below 10% of your limit
Impacts: Credit Utilization (30%)
While 30% is commonly advised, 10% or lower is the real sweet spot. Anything above 10% will chip away at that 30% of the overall credit score affected by credit cards:
A 10−30% balance takes away up to 10%
A 30–50% balance takes away 10−25%
A 50−90% balance takes away 25–90%
Tip: If your card has a $5,000 limit, aim to keep the balance under $500 at any point in the billing cycle. This is because credit utilization resets monthly. A high balance—even if paid off later—can spike your usage rate temporarily and drag your score down.
What if you don’t have an active credit card?
Without recent revolving credit, you may be missing a huge portion of your score potential. If you’re consistently at a 0–7% balance-to-limit ratio, credit models may read that as inactive usage, not responsible credit behavior.
Additionally, it may be one of the best tools available for building a strong credit history, which is essential for achieving your business goals, such as securing financing.
3. Become an authorized user on someone's good account
Impacts: Length of Credit History (15%) + Credit Mix (10%)
Piggybacking on a well-managed, older account can give your score a boost, especially if your credit profile is thin or new. Have someone you know, such as a spouse or a family member, add you as an authorized user of their credit card. You’d have to ask the person to do this, and if they agree, they would add you, receive the credit card in your name linked to their account, and pass it off to you.
Some things to keep in mind: Just as you will benefit from the person’s good habits, that person can take a credit hit if you abuse the authorization you’ve been given, so treat it with respect (remember, they're still on the line for all charges). And don’t get yourself authorized on too many accounts. Credit agencies will flag that as you artificially raising your score.
Tip: Make sure the account has low balance and a long positive payment history. And it goes without saying, only piggyback with someone you trust, and who trusts you.
4. Dispute any errors on your credit report
Impacts: All score factors (depending on nature of errors)
According to the Fair Credit Reporting Act, your credit agency is required to show you your credit report at least once a year at no charge. Take full advantage of that right.
You may have credit dings you don’t know about or that don’t belong on your credit report. You have the right to challenge them and request they be removed.
Tip: Go through your credit report each year— and be thorough. Even a few inconsistencies can add up quickly and could be the difference between a red flag and a green light for funding.
5. Use existing accounts strategically
Impacts: Credit Mix (10%), Credit Utilization (30%), Credit History (15%)
Using dormant lines (like a personal line of credit or store card) can show active, responsible credit behavior—without opening new accounts.
Your credit history is an average of all your open and active credit accounts. A good credit history with credit—any credit—can positively impact your score. If you have a line of credit that you've not used, consider paying expected expenses with it and then paying back the line of credit with the money you already put aside in your checking account to pay those bills.
Do: Make small, recurring charges on your older cards to keep them active
Don’t: Open a new card just to get a discount or points. It lowers the average age of your accounts and causes a hard inquiry.
6. Limit hard credit inquiries
Impacts: New Credit (10%)
Applying for multiple credit cards or loans in a short period can lower your score—especially if you’re already rebuilding.
If you're thinking about applying for a new card and maintaining a low balance, proceed with caution: you won't want to apply for a lot of new credit at the same time. The reason for this has to do with “credit inquiries” or "credit checks" (also called a "credit pull"), which is the term used when a lender, broker, partner, or vendor checks your credit score.
A “hard inquiry” is what you want to avoid when trying to rebuild credit because each one negatively impacts your credit score. The less credit you apply for, the fewer hard inquiries your credit score will show.
Tip: Be strategic. Rate shop within 14–45 days if applying for loans (FICO treats this as one inquiry). Otherwise, space out applications and avoid “just browsing” preapprovals that trigger hard pulls.
7. Avoid spending behavior that signals risk
Impacts: Lender perception and soft underwriting
Some lenders use algorithms that analyze changes in your spending behavior. Large purchases (weddings, legal fees), sudden drop in payments, or maxing out credit cards can be red flags even if you pay on time.
Focus on what matters most. Your payment history and credit utilization make up 65% of your credit score—prioritize on-time payments and keeping balances low.
Start where you are. The lower your starting score, the more dramatic gains you may see early on. But everyone benefits from consistent credit-building habits over time.
Think in timelines, not overnight fixes. Small, strategic moves over 3, 6, and 12 months can lead to meaningful credit improvements—especially if you keep building on what’s working.
Stay consistent. Credit improvement is a marathon, not a sprint. Monitor your progress, avoid setbacks, and stay focused on long-term financial health.
SBA loan rates are tied to a base rate that changes with the market. Lenders can charge borrowers a rate that falls somewhere between the base rate and the maximum set by the government.
Current SBA rate maximums range from 10.5% to 15.5%.
Explore the most popular SBA loan programs and their rate structures to find out which one is the best fit for your company.
Before we dive in, get familiar with the basics in our SBA loans overview- a great place to start if you're exploring funding options.
How SBA loan interest rates work.
SBA loan rates are regulated by the U.S. Small Business Administration. Private lenders negotiate their own rates with each individual borrower. But the offered loan rate cannot exceed the maximum set by the SBA for each loan program.
The maximum is tied to a base rate, which can be one of the following:
Prime rate: The most commonly used rate, currently at 7.5%
Optional peg rate: Updated quarterly by the SBA based on market conditions, currently 4.63%
The borrower is then charged a markup (a percentage over that base rate). That varies based on:
Loan amount
Type of SBA loan
Loan maturity date
Current SBA loan rates (August 2025).
Here is how each SBA interest rate breaks down, based on the loan program and other details.
SBA 7(a) loan rates
SBA 7(a) loans can be used for general working capital needs and have interest rates that can either be variable or fixed. Fixed rates have a higher premium but never change, even if the base rate increases over time.
SBA 7(a) rates range from 3% to 8% above the base rate. Use the following table to compare rates for different loan sizes and term lengths. The current (August 2025) Wall Street Journal Prime Rate is 7.50%.
Amount
Maximum Fixed Rate
$25,000 or less
Prime +8%, or 15.5%
$25,000 - $50,000
Prime +7%, or 14.5%
$50,000 - $250,000
Prime +6%, or 13.5%
Greater than $250,000
Prime +5%, or 12.5%
Amount
Maximum Variable Rate
Up to $50,000
Prime + 6.5%, or 14%
$50,000 to $250,000
Prime + 6.0%, or 13.5%
$250,000 to $350,000
Prime + 4.5%, or 12%
Greater than $350,000
Prime + 3.0%, or 10.5%
Historical Prime rates
SBA 504 loan rates
SBA 504 loans are designed to purchase assets that help with job creation or business growth, such as new facilities, machinery, or renovating an existing property. These loans are available through certified development companies (CDCs) and offer fixed interest rates.
You can apply for either a 10-year or a 20-year repayment period. The SBA 504 rates are incrementally pegged above the current rates for 5-year and 10-year U.S. Treasury issues. The rate typically totals 3% of the loan amount.
Historical U.S. Treasury rates
SBA Microloan loan rates
Microloans from the SBA help newer small businesses with startup or expansion costs. Borrowers can get approved for up to $50,000, although the average loan size is $13,000. The maximum repayment term is six years.
Microloan rates are based on the lender’s cost of funds.
Loans over $10,000: 7.75% over cost of funds
Loans of $10,000 or less: 8.5% over cost of funds
Expect SBA microloan rates to range from 8% to 13%.
SBA Express loan rates
SBA Express loans allow for a shorter approval time, so you can get faster access to capital. In fact, you'll get an initial response within 36 hours. The maximum loan amount is capped at $500,000 and rate maximums are the same as SBA 7(a) loans.
SBA Community Advantage loan rates
The SBA Community Advantage loan program was created to help businesses in underserved markets. These loans were capped at $350,000. Interest rates were negotiated by the lender but were subject to the SBA's maximums. This program was sunsetted in October 2023.
Lenders under this program are now licensed as Community Advantage Small Business Lending Companies in the 7(a) loan program and will continue to provide access to financing to underserved communities.
Typical SBA loan fees
In addition to paying interest on SBA loans, borrowers may also pay an upfront SBA Guaranty Fee.
Upfront fee on SBA 7(a) loans
This fee is based on the approved loan amount, including both the guaranteed and the unguaranteed portions.
Loans with 12-month maturity or less
Loan Amount
Fee
$1 million or less
0%
$1 million+
0.25% of the guaranteed portion
Loans with more than 12-month maturity
Loan Amount
Fee
$1 million or less
0%
$1 million+
3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000
To calculate monthly payments for your SBA loan, visit our SBA loan calculator. Need help finding the best interest rate for your SBA loan or other business term loan?
Update: BayFirst announced they would be discontinuing the Bolt loan program on August 4, 2025. Read on for alternatives to the program.
You can’t always anticipate your business needs. So, when a new opportunity arises, and you need funding fast, it’s good to know all of your available options. One popular option was until recently the SBA Bolt loan. It offered flexible business financing in a more streamlined way than what you may expect from SBA funding. These loans were built for speed and could be your fast-track option for small business financing when minutes really matter.
What is an SBA Bolt loan?
The SBA Bolt was a type of SBA 7(a) loan that limited borrowers to no more than $150,000 but had fewer business loan requirements to meet when applying. It had a faster approval process, too, so was ideal for those in a crunch to get funding for a time-sensitive need.
The Bolt loan was an offering issued by CreditBench, the small-business lending division of BayFirst. However, on August 4, 2025, BayFirst announced that they would be discontinuing the Bolt loan program.
Was the Bolt loan an SBA loan?
Yes and no. The SBA loan program doesn’t offer an official Bolt loan program. Instead, the “Bolt” loan designation was created by BayFirst Financial to market its expedited small-dollar SBA 7(a) loans. So, the Bolt loan was an SBA 7(a) loan, but the name for this segment of small-dollar loans was created by BayFirst.
Key features of the SBA Bolt loan for small businesses
SBA Bolt loans weren’t the only fast, small business loans on the market, but they did stand out for a few reasons.
Loan amounts were significant enough to make a difference in a business, but not so large that they needed extensive documentation or collateral.
Processing time was just days, so businesses received funding much faster than the weeks or even months of traditional business loans.
The streamlined application process required much less paperwork. Most businesses would have the documentation they need on hand (or could access it quickly).
The shorter 10-year repayment period helped businesses plan for the near future and not worry about being saddled with decades of additional debt.
Competitive interest rates made the SBA Bolt loans a more stable option compared to “fast cash” alternatives.
Application requirements at a glance
While the SBA Bolt loans may have been quicker to get, they still had minimum requirements to meet. These loans were for legitimate, proven businesses that could demonstrate creditworthiness.
Businesses had to:
Be in an approved industry for SBA loans (no life insurance, lobbying, or primarily gambling businesses, among others)
Be U.S.-based
Meet the SBA’s standards for “small”
Operate for profit
Have 2 years of demonstrated operations (some small startups may also qualify)
Show proof of revenue and ability to repay
Be unable to get financing on reasonable terms from other sources
Alternatives to SBA Bolt Loan
Now that the Bolt loan program has been discontinued, you might be wondering what your other options are. Here’s a comparison of the SBA Bolt Loan against other small-dollar SBA loan programs.
SBA Bolt Loan vs. SBA Express Loan
Closest in speed and simplicity to the SBA bolt loan would be the SBA Express loan, a small-dollar SBA loan meant to eliminate excessive paperwork and decisioning. Of other SBA loan program offerings, the SBA Express loan reduces the number of forms and procedures required, and allows lenders to use more of their own loan analysis, procedures and documentation than other SBA loans.
SBA Bolt Loan
SBA Express Loan
Amount
$25,000 - $150,000
Up to $500,000
Uses
Working capital
Working capital, equipment purchase, inventory, real estate
Repayment Term
10 years
10 years (25 for real estate)
Time to funding
Approval and funding within days
30-90 days
Availability
Available through 1 SBA lender
Available through multiple SBA lenders
Requirements
Fewer documentation requirements than standard SBA loans
Fewer documentations requirements than standard SBA loans
SBA Bolt loans vs. other small business loan options
SBA Bolt loans were fast, flexible, and available to businesses that may have been shut out of other financing opportunities. Now that they have been discontinued, take a look at some other options available. Here’s how they compared to common business funding programs used by companies today:
Traditional SBA 7(a) loans: Offer much larger amounts (up to $5 million) and broader use cases, but the approval and funding take much longer (weeks or more). Paperwork and documentation needs can be extensive.
Term loans: Offer a lump sum that’s repaid over a set period, usually with a customizable term, and for larger amounts. Approval process can take longer, require physical collateral, and may not be guaranteed by the SBA or partner banks.
Lines of credit: Offer flexible funding to borrow from again and again, instead of the single, one-time lump payout of a Bolt loan. Comes with a higher interest rate in most cases and can be harder for the average small business to qualify for.
Revenue-based financing: Provides upfront cash that is rapidly repaid through a percentage of daily sales. Comes with a higher interest rate and lacks a fixed repayment structure that helps businesses budget better.
Many SBA loan portals let you shop around to see what rates, terms, and limits you qualify for. Don’t be afraid to ask questions about these various lender offers so you know how the loan process will look and to ensure you get the best service – and deal!
Lendio makes a great first step in the process, showing you the loans you’re likely to qualify for, rates available, and the loan terms you can expect before you fill out all the paperwork.
Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/
Running a business means constantly juggling priorities, and cash flow is always at the center of the equation. Whether it’s making payroll, covering vendor invoices, or seizing a new growth opportunity, your ability to see what’s coming (and act quickly) makes all the difference.
That’s where QuickBooks comes in. With the suite of QuickBooks Money tools, business owners can accept payments, pay bills, and access capital all in one place. This gives small business owners a real-time view of money in and money out. You can track every transaction, automate key workflows, and spot cash flow trends before they become problems.
But even with the clearest picture, some moments call for more than just good visibility. If you find your forecast unexpectedly short, or are presented with an opportunity for additional growth that requires unforeseen expense, QuickBooks Capital can help. With QuickBooks Capital, you have fast, flexible access to funding options, right from the platform you already use to run your business.1
Tracking what matters: Money in, money out, and what’s next
Managing cash flow isn’t just about tracking dollars. At its core, it comes down to three components:
Money coming in (revenue, payments received)
Money going out (expenses, bills, payroll)
Timing (when those inflows and outflows hit your accounts)
It’s not enough to know how much money you made last month. You need to know if your upcoming bills will outpace your receivables. That’s where many small businesses get stuck: juggling different systems, manual spreadsheets, and late payment surprises.
The QuickBooks Money portfolio simplifies this. It brings together tools to support processing money coming in, money going out, and funding opportunities to help you fill gaps and fund growth with flexible financing.
By centralizing the tools that drive cash in and cash out, QuickBooks gives you a living, breathing picture of your cash position and helps you automate cash flow forecasts, so you have financial clarity, and you can plan for what’s ahead.
QuickBooks Capital: Funding that fits your flow
Traditional business loans take time—often weeks—and demand piles of paperwork: income statements, balance sheets, cash flow projections, bank records, and more. And even after all of that, approval isn’t guaranteed.
QuickBooks Capital flips that model. Because your financial data already lives in QuickBooks, your business performance speaks for itself. There’s no need to dig up documents or guess what a lender might want to see.
Apply directly through QuickBooks. No need to visit another portal and start from scratch with paperwork.
Get a decision in as little as 30 seconds, instead of waiting 30 days.
Access a Term Loan or Line of Credit, and get quick funding when you need it.
Repay on predictable, fixed terms, with no origination fees.
Receive funds in 1-2 business days2, so you can move quickly and confidently.
Whether you’re bridging a short-term cash flow dip or making a bold move to grow, QuickBooks Capital enables you to make fast, confident decisions without slowing down your business.
Plan ahead with confidence
When your finances live in QuickBooks, you don’t just see where you’ve been. You can spot what’s coming. With built-in forecasting tools and real-time insights into cash flow, you can identify slowdowns before they impact your business, and act fast to stay ahead.
QuickBooks Capital makes it easy to turn foresight into action. Use your funding to:
Smooth over slow months without skipping a beat
Purchase inventory ahead of demand, so you’re always stocked and ready
Hire or scale at the right moment, not just when cash allows
Your financial data isn’t just for reporting, it’s a launchpad for your next move—whether that’s staying steady or stepping into something bigger.
The bottom line
Cash flow clarity is powerful—but when you combine that with fast, flexible capital access, your business has the tools it needs to succeed. With QuickBooks Capital, you can move quickly, invest wisely, and grow on your terms, without jumping through hoops.
1QuickBooks Term Loan and QuickBooks Line of Credit loans are issued by WebBank.
2Funding times may vary depending on third-party processing times.
Advertising Disclosure: Lendio may provide compensation to the entity who referred you for financing products and services listed on our site. This compensation may impact how and where certain products and services are offered to you. We may not list all financing products and services available to you. The information provided by Lendio is intended for general informational purposes only and should not be construed as professional tax advice. Lendio is not a tax preparer, law firm, accountant, or financial advisor. Lendio makes no guarantees as to the completeness, accuracy, or reliability of the information provided. We strongly recommend that you consult with a qualified tax professional before making any decisions. Reliance on any information provided by Lendio is solely at your own risk, and Lendio is not liable for any damages that may result from the use or reliance on the information provided.
Social media can be a game-changer for small businesses—if you know how to use it. This guide covers everything from choosing the right platforms to creating engaging content and growing your audience. With actionable tips and proven strategies, you’ll learn how to turn likes and follows into real business results.
Email marketing is one of the most powerful tools for small businesses—when done right. This guide covers everything from building your email list to crafting engaging campaigns that drive results. With actionable tips and step-by-step guidance, you’ll learn how to connect with your audience, boost sales, and grow your business through email.
Digital marketing doesn’t have to be overwhelming. This guide simplifies the essentials, from building an online presence to leveraging social media, email, and SEO. Packed with practical tips and step-by-step strategies, it’s designed to help small businesses succeed in the digital world without a big budget or a full marketing team.
Let’s face it. There’s a lot of bad marketing advice out there. Or great advice that’s far too in-depth for a small business owner who isn’t looking to start a full-time career in marketing. We created this guide to cut through the clutter and provide you with principles, direction and the applicable step-by-step how-tos to get the job done.
Your brand is more than just a logo—it’s the heart of your business. This guide walks you through the essentials of small business branding, from defining your identity and crafting your message to building a strong, lasting impression. With clear steps and actionable advice, you’ll create a brand that resonates with customers and sets your business apart.
Hiring for small businesses doesn’t have to be complicated. Your business can achieve success when you understand relevant legal requirements and find the right job candidates for your open positions. This comprehensive guide covers everything from finding the right employees to hire to employee training and development.
Your best customers are your biggest growth opportunity. This guide breaks down customer marketing strategies tailored for small businesses, helping you turn happy customers into loyal advocates. From building relationships to leveraging referrals, discover actionable steps to maximize lifetime value and drive sustainable growth.
From selecting the right franchise opportunity to navigating the financial aspects, this step-by-step resource equips aspiring entrepreneurs with the knowledge and strategies needed to thrive in the world of franchising.
Have a business idea but not sure where to start? Our comprehensive guide to starting a business has everything you need to know. From legal requirements to market research, we’ve got you covered.
Running and growing a business is no easy feat. Our guide to running a business has everything you need to know to keep things running smoothly. From managing employees to marketing your business, we’ve got you covered.
Take your business to the next level with our Accounting Guide. Master the language of numbers, understand financial statements, and make informed decisions based on accurate financial data. Discover the power of sound financial management.
Master the art of cash flow management with our comprehensive guide. Learn strategies to optimize your cash flow, forecast revenue and expenses, and keep your business financially stable. Take control of your finances and achieve long-term success.
Streamline your billing process with our Invoicing Guide. Learn how to create professional invoices, manage client payments, and maintain a healthy cash flow for your business. Get paid faster and efficiently track your revenue.
A great marketing strategy is the foundation of small business success. This guide takes you step-by-step through defining your goals, identifying your audience, and choosing the right channels. With practical tips and clear direction, you’ll build a tailored strategy that drives growth and delivers measurable results.
Navigate the complex world of taxes with our Tax Preparation Guide. From understanding tax obligations to maximizing deductions and filing quarterly taxes, we’ll help you stay compliant and minimize your tax burden. Unlock the secrets of tax success for your business.
Stay on top of your business finances with our Bookkeeping Guide. Learn the art of tracking income and expenses, maintaining financial records, and keeping your books in order. Unlock financial success with our expert tips.
Need help securing funding for your business? Our business loans guide simplifies the financing process, explains key terms, and walks you through your loan options.
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