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If you want to qualify for an SBA loan, such as the SBA 7(a) loan, you’ll need to have excellent credit. However, not every SBA loan needs an applicant to have the same credit score, or a certain range of scores. In this post, we’ll look at the most common types of SBA loans and the credit scores and qualifications that borrowers will need to be accepted.

Credit Score Requirements for SBA 7(a) Loans

SBA 7(a) loans, the most common kind of SBA guaranteed financing, usually require applicants to have a credit score of 640 or above. However, since SBA 7(a) loans are notoriously tough to get, most applicants will have much more success if they can raise their credit score to 680 or above. SBA 7(a) loans have a $5 million maximum loan size and may be used for both commercial real estate and working capital, making it one of the most versatile types of small company loans available.

7(a) Express Loans from the Small Business Administration

SBA 7(a) Express Loans have the same credit criteria as standard SBA 7(a) loans, which typically demand a minimum credit score of 640 and a preferred credit score of 680+. SBA 7(a) Express Loans, unlike standard 7(a) loans, have a loan maximum of $350,000 and may be granted in a significantly shorter amount of time, making them suitable for companies that need funding quickly.

CAPLines from the Small Business Administration

The minimum credit score for the SBA CAPlines program, which offers revolving lines of credit to small companies in need, is 660, which is somewhat higher than the requirement for SBA 7(a) loans. CAPlines may usually be collateralized with outstanding customer obligations and other types of short-term collateral.

Export Loans from the Small Business Administration

A minimum credit score of 660 is also required for SBA Export Loans, which include SBA Export Working Capital Loans offered through the SBA Export Working Capital Program (EWCP), SBA Export Express Loans, and SBA International Trade Loans.

Microloans from the Small Business Administration

SBA Microloans, unlike most other types of SBA loans, have less strict credit standards, with a minimum credit score of 620-640 usually needed. Microloans are available in quantities up to $50,000, and although there are less credit criteria, collateral is still needed.

504 Loans from the Small Business Administration

SBA 504 loans offer lower interest rates than SBA 7(a) loans since they are designed for the acquisition and development of owner-occupied commercial real estate (and cannot be used for working capital). 504 loans, on the other hand, have the toughest credit criteria of any SBA loan, requiring a minimum credit score of 680.