Glossary · Reading the business
Credit Memo
In short
This is the lender's internal document that summarizes their analysis of your loan application and the business. It details why they believe you and the business are creditworthy.
What it means in a deal
The credit memo is where the lender's underwriter lays out the case for approving your loan. It includes financial analysis, your creditworthiness, collateral evaluation, and how the business meets SBA eligibility rules. As a buyer, you won't typically see the full memo, but your loan officer will discuss its key findings with you, especially regarding any conditions of approval.
Related terms
Common questions about Credit Memo
- How does a lender document adherence to prudent lending standards in the underwriting credit memo?
- How does the credit memo for a 7(a) loan demonstrate adherence to prudent lending standards?
- Does the sunset of the SBSS score impact the requirement for a credit memo or documented credit analysis for 7(a) Small Loans?
- What specific information should a lender include in the credit memo for a 7(a) loan application?
- What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?
- What specific information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran submission?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.