For SBA lenders
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Beyond the SBSS score, lenders must perform a comprehensive credit analysis for 7(a) Small Loans, including evaluating the borrower's character, management expertise, business cash flow, collateral, and equity injection. The sunset of the SBSS score shifts reliance to these traditional underwriting pillars.
With the sunset of the SBSS score for 7(a) Small Loans, lenders are now required to return to more traditional credit underwriting. This involves a thorough assessment of the 'Five C's of Credit' (Character, Capacity, Capital, Collateral, Conditions) to ensure prudent lending standards are met. The lender's credit memo must document this comprehensive analysis.
For a $250,000 7(a) Small Loan, a lender no longer relies solely on the SBSS score. Instead, they analyze the borrower's personal credit history, industry experience, projected debt service coverage ratio, available business and personal collateral, and the source and amount of equity injection, as well as prevailing economic conditions.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Sunset of SBSS Score for 7(a) Small Loans
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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