{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-must-lenders-underwrite-7-a-small-loans-following-the-sunset-of-the-sbss-score-require","api_url":"https://dealroom.so/api/public/questions/how-must-lenders-underwrite-7-a-small-loans-following-the-sunset-of-the-sbss-score-require","question":"How must lenders underwrite 7(a) Small Loans following the sunset of the SBSS score requirement?","topic":"SBSS Sunset","audience":"lender","bot_mode":"lender","short_answer":"Following the SBSS sunset, lenders must apply standard prudent lending practices and utilize comprehensive credit analysis for 7(a) Small Loans, similar to larger 7(a) loans, rather than relying solely on the SBSS score.","rule":"The SBA no longer relies on the Small Business Scoring Service (SBSS) score as a primary underwriting tool for 7(a) Small Loans. Lenders are now required to perform a full credit analysis for all 7(a) loans, including Small Loans, assessing the borrower's character, capacity, collateral, capital, and conditions (the '5 Cs of Credit') in line with prudent lending standards.","example":"A lender receives an application for a $150,000 7(a) Small Loan. Instead of just checking the SBSS score, the lender now conducts a full financial review, including analyzing personal and business tax returns, financial statements, and credit reports, performing cash flow analysis, and assessing collateral.","what_lenders_check":"Lenders must adapt their underwriting processes for Small Loans to ensure compliance with the new policy, avoiding over-reliance on automated scoring. Documenting comprehensive credit analysis is vital to protect the guaranty and demonstrate adherence to prudent lending standards.","required_facts":["SBSS sunset","7(a) Small Loans","Prudent lending","Comprehensive credit analysis","5 Cs of Credit"],"source_families":["Sunset of SBSS Score for 7(a) Small Loans","SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"Sunset of SBSS Score for 7(a) Small Loans","url":"https://www.sba.gov/sites/default/files/2026-01/SBA%20Procedural%20Notice%205000-875701%20-%20Sunset%20of%20SBSS%20Score%20for%207a%20Small%20Loans.pdf"},{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Beyond SBSS, what specific credit analysis must a lender perform for 7(a) Small Loans?","url":"https://dealroom.so/for-lenders/questions/beyond-sbss-what-specific-credit-analysis-must-a-lender-perform-for-7-a-small-loans"},{"question":"How has the sunset of the SBSS score requirement impacted underwriting for 7(a) Small Loans?","url":"https://dealroom.so/for-lenders/questions/how-has-the-sunset-of-the-sbss-score-requirement-impacted-underwriting-for-7-a-small-loans"},{"question":"Does the sunset of the SBSS score impact the requirement for a credit memo or documented credit analysis for 7(a) Small Loans?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-the-sbss-score-impact-the-requirement-for-a-credit-memo-or-documented-c"},{"question":"For 7(a) Small Loans, what specific alternative credit analysis methodologies are now required in place of the SBSS score?","url":"https://dealroom.so/for-lenders/questions/for-7-a-small-loans-what-specific-alternative-credit-analysis-methodologies-are-now-requir"},{"question":"Does the sunset of SBSS affect the underwriting requirements for standard 7(a) loans above the Small Loan threshold?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-sbss-affect-the-underwriting-requirements-for-standard-7-a-loans-above-"},{"question":"How does the sunset of the SBSS score impact 7(a) Small Loan underwriting?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sunset-of-the-sbss-score-impact-7-a-small-loan-underwriting"}],"related_terms":[{"term":"SBSS score","url":"https://dealroom.so/glossary/sbss-score"},{"term":"7(a) Small Loan","url":"https://dealroom.so/glossary/7-a-small-loan"},{"term":"FICO SBSS score","url":"https://dealroom.so/glossary/fico-sbss-score"},{"term":"Underwrite","url":"https://dealroom.so/glossary/underwrite"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBSS","url":"https://dealroom.so/glossary/sbss"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-must-lenders-underwrite-7-a-small-loans-following-the-sunset-of-the-sbss-score-require","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}