Glossary · The loan itself
Underwriting standard
In short
These are the specific criteria and policies a lender uses to evaluate a loan applicant's creditworthiness and the viability of the business. Meeting these standards is essential for loan approval.
What it means in a deal
Every SBA 7(a) lender has "underwriting standards" that must align with "SOP 50 10" and 13 CFR Part 120. They assess your "creditworthiness," "repayment capacity," and the business's "cash flow." You need to present a strong case meeting these standards, which include FICO scores, DSCR, and equity injection requirements.
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 Underwriting standard
- Does the sunset of SBSS affect the underwriting requirements for standard 7(a) loans above the Small Loan threshold?
- What constitutes prudent lending standards for SBA 7(a) underwriting?
- What constitutes prudent lending standards for SBA 7(a) underwriting regarding credit analysis?
- How does the SBA assess "prudent lending standards" in 7(a) loan underwriting?
- How does a lender document adherence to prudent lending standards in the underwriting credit memo?
- How does the SBA evaluate "prudent lending standards" in 7(a) loan underwriting regarding collateral analysis?
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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