SBA loan basics
Short answer
Low personal liquid assets on your financial statement can be a concern for lenders, as it may indicate limited ability to withstand unexpected personal or business financial challenges.
Lenders review a borrower's Personal Financial Statement (PFS) to assess overall financial health, not just credit score. While a strong credit score is positive, low liquid assets (cash, marketable securities) can raise questions about a borrower's ability to cover personal expenses or inject additional capital if the business faces unforeseen difficulties. This can be mitigated by strong business cash flow or other assets.
A borrower has an excellent credit score but only $5,000 in savings and a high personal debt load (e.g., mortgages, car loans). The lender might view this as risky, even if the business projections are strong, worrying about the borrower's personal resilience in a downturn. They might require a higher equity injection or additional collateral.
Insider move
Lenders evaluate the borrower's global cash flow, including personal income and expenses, and the strength of the business's cash flow. They seek comfort that the borrower has sufficient personal financial stability to support the business during its early years or unexpected events.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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