Glossary · Doing the deal
Credit underwriting
In short
This is the lender's process of evaluating your creditworthiness and the business's financial health to determine loan risk. It dictates whether you get approved and on what terms.
What it means in a deal
During credit underwriting, the lender assesses your personal credit, the business's cash flow (SDE/EBITDA), collateral, and industry risks. You'll provide extensive financial documentation; a strong presentation here is crucial for loan approval and favorable terms.
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 underwriting
- 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?
- For 7(a) Small Loans, what credit documentation now replaces the reliance on the SBSS score for underwriting?
- 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 constitutes prudent lending standards for SBA 7(a) underwriting?
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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