Glossary · The loan itself
Credit standard
In short
The criteria a lender uses to evaluate a borrower's creditworthiness, including FICO scores, repayment history, and existing debt. Meeting these standards is crucial for loan approval.
What it means in a deal
The SBA requires lenders to apply prudent lending standards, meaning your personal credit history and the business's financial health will be thoroughly reviewed. Expect your lender to check your FICO score, credit report, and global cash flow to assess your repayment capacity.
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 standard
- What constitutes prudent lending standards for SBA 7(a) underwriting regarding credit analysis?
- How does a lender document adherence to prudent lending standards in the underwriting credit memo?
- What specific documentation is required for a lender's independent credit analysis under prudent lending standards?
- How does the credit memo for a 7(a) loan demonstrate adherence to prudent lending standards?
- How does common management trigger affiliation for size standard purposes?
- How does the SBA define "small business" for size standard purposes?
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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