Glossary · The loan itself
Credit scoring
In short
Credit scoring is a system lenders use to assess a borrower's creditworthiness by assigning a numerical score based on their credit history. For you, a better score means lower risk to the lender and a higher chance of loan approval.
What it means in a deal
SBA lenders use credit scoring, particularly the FICO SBSS score, to quickly pre-screen applicants for eligibility and risk. A strong personal credit score is crucial for your 7(a) loan application, as it directly impacts initial lender interest and loan terms. Ensure your personal credit is in good standing before applying.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 scoring
- What alternative credit scoring methods are now recommended for 7(a) Small Loans after the SBSS sunset?
- With the sunset of the SBSS score, what alternative credit scoring methods are acceptable for small 7(a) loans?
- With the sunset of SBSS, what alternative credit scoring methodologies are acceptable for underwriting 7(a) Small Loans ($500,000 or less)?
- What operational adjustments must a lender make to its internal credit scoring and underwriting processes for 7(a) Small Loans following the SBSS score sunset?
- What if my personal credit report shows a recent late payment on a minor credit card?
- Does having many recent credit inquiries on my personal credit report affect SBA 7(a) loan approval chances?
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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