Glossary · Reading the business
Credit review
In short
This is a lender's process of evaluating both your personal creditworthiness and the target business's financial health. It determines if you and the business are likely to repay the loan, which is essential for loan approval.
What it means in a deal
Lenders will pull your personal credit report and FICO score, and analyze the business's historical financial data, cash flow, and overall leverage. Be prepared to provide accurate financial statements and address any derogatory marks or liabilities early on.
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 review
- What is the typical timeframe for SBA loan application review by the lender?
- How thoroughly does the SBA review the business valuation report provided by the lender?
- Is an environmental review needed if my SBA 7(a) loan includes real estate?
- What specific elements of a franchise agreement does the SBA review to determine eligibility?
- What specific environmental review is required for commercial real estate included in an SBA loan?
- What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?
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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