For SBA lenders
Short answer
Lenders must obtain resumes for key management, verify relevant industry experience, assess their roles and responsibilities, and analyze the team's collective ability to execute the business plan effectively.
For startups, management experience is critical for successful operation and repayment. Prudent lenders go beyond just accepting resumes; they verify experience, assess the management team's collective skills, and ensure they have the operational, financial, and industry-specific expertise necessary to succeed, especially where the borrower has limited direct experience.
A lender evaluates a $750,000 7(a) loan for a new restaurant. The borrower has marketing experience but no restaurant management. The lender requires resumes for the proposed head chef and general manager, verifies their 10+ years of restaurant experience, reviews their roles in the business plan, and documents the collective expertise to run the restaurant.
Insider move
Lenders must demonstrate that the management team, as a whole, possesses the necessary skills. Overlooking gaps in critical management experience for a startup can be seen as imprudent lending, increasing the risk of default and potential guaranty repair.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
More on prudent lending standards
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day