Glossary · Doing the deal
Credit policies
In short
These are the internal rules and guidelines a lender uses to evaluate loan applications and manage risk. They define what types of businesses and borrowers a lender will finance.
What it means in a deal
While the SBA sets broad eligibility, individual lenders have their own credit policies that can be stricter. Understanding a lender's specific policies (e.g., minimum FICO, industry preferences) can help you target the right lender and prepare your application to meet their specific criteria.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Credit policies
- What are the SBA's specific guidelines for acceptable collateral life insurance policies?
- Does an SBA 7(a) loan require specific insurance policies for my business?
- Who typically pays the premiums for life insurance policies used to fund a buy-sell agreement?
- Is it necessary to obtain separate life insurance policies for each owner in a multi-owner business?
- How does a lender ensure life insurance policies assigned as collateral are properly maintained throughout the loan term?
- What constitutes 'material non-compliance' with SBA lending policies that typically leads to a guaranty repair or denial?
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.
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