SBA Resources · Free · 2 minutes
Will I Qualify for an SBA Loan?
Before you spend weeks on an application, find out where you stand. This checks the same gates and numbers a lender will — and tells you exactly what to fix.
SBA approval comes down to two things: eligibility gates (U.S. for-profit business, eligible owners, no delinquent federal debt, eligible industry) and four scored strengths — credit (~680+), equity injection (~10%), debt service coverage (DSCR ≥ 1.15–1.25x), and relevant experience. This free check runs you against all of them.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.
Your 2-Minute Readiness Check
1. Eligibility gates (all must be true)
SBA wants ~10% for acquisitions and startups, generally seasoned funds.
This is DSCR. Not sure? The DSCR calculator works it out.
Get the free 27-Point SBA Loan Checklist
Now that you know where you stand, get the exact list of what lenders check — so you walk in prepared and don't get surprised at underwriting.
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Found a deal? Find out if the SBA will fund it — before you sign anything.
The "Will the SBA Fund This Deal?" kit runs your actual deal through the checks lenders run: your walk-away price, equity injection, collateral, global DSCR, and the red flags that kill applications — verified against the current SBA SOP 50 10 8. And we don't sell your lead.
It launches soon. Join the list for first access and a founding-buyer price. See what's in the kit →
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Frequently Asked Questions
What disqualifies you from an SBA loan?
Common knockouts: the business isn't for-profit or based in the U.S.; owners aren't U.S. citizens or lawful permanent residents (51%+ ownership); you're delinquent on existing federal debt (taxes, student loans) or in an unresolved recent bankruptcy; or the business is an ineligible type (lending, gambling, passive real estate, speculative). If none of those apply, you're through the eligibility gate and it comes down to credit, cash flow, and equity.
What credit score do you need for an SBA loan?
The SBA sets no hard minimum, but most 7(a) lenders look for roughly 680+, and many use a FICO Small Business Scoring Service (SBSS) cutoff. Scores in the 650–679 range can work with compensating strengths (strong cash flow, more equity, experience). Below ~650 usually needs to improve first.
How much money do I need to put down?
For a business acquisition or startup, plan on at least a 10% equity injection of total project cost, and the money generally has to be seasoned (already yours, not a last-minute loan). Some deals need 15–20%. A seller note can cover part of it only if it's on full standby.
What is DSCR and what do I need?
Debt service coverage ratio is your cash flow divided by the loan payments. The SBA floor is about 1.15x and most lenders want 1.25x — meaning the business (plus your household, in the global calculation) generates 15–25% more cash than the debt costs. It's the number most likely to make or break approval.