{"ok":true,"canonical_url":"https://dealroom.so/glossary/credit-standard","api_url":"https://dealroom.so/api/public/glossary/credit-standard","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"credit-standard","term":"Credit standard","group":"The loan itself","definition":"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":"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.","url":"https://dealroom.so/glossary/credit-standard","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"prudent-lending-standards","term":"Prudent lending standards","url":"https://dealroom.so/glossary/prudent-lending-standards"}],"related_questions":[{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting regarding credit analysis?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting-regarding-credit-analy"},{"question":"How does a lender document adherence to prudent lending standards in the underwriting credit memo?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-document-adherence-to-prudent-lending-standards-in-the-underwriting-cred"},{"question":"What specific documentation is required for a lender's independent credit analysis under prudent lending standards?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-s-independent-credit-analysis-under-p"},{"question":"How does the credit memo for a 7(a) loan demonstrate adherence to prudent lending standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-credit-memo-for-a-7-a-loan-demonstrate-adherence-to-prudent-lending-standards"},{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does the SBA define \"small business\" for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-small-business-for-size-standard-purposes"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Credit standard","url":"https://dealroom.so/glossary/credit-standard","source_type":"DealRoom Data"}}