The Small Business Administration (SBA) loan works closely with small business owners or borrowers to provide financial resources borrowers need to purchase or repair real estate, equipment, machinery, or other assets. To qualify for an SBA small business loan, a small business owner must meet a general standard set by SBA or lenders. One of the requirements, though it’s not explicitly stated, is a healthy personal and business credit score. While it’s not impossible to get an SBA loan with a bad credit, having bad credit surely puts your business at disadvantage when you’re applying for an SBA small business loan.
Let’s look at how a bad personal or business credit score affects a small business owner’s ability to successfully get an SBA small business loan.
Personal Credit Score
The SBA hasn’t set a minimal requirement for a FICO score that you need to achieve to qualify for an SBA loan. The qualification for credit score varies entirely on the lender which is oftentimes a large financial institution such as Bank