BIGGEST MISUNDERSTANDINGS

 

“It’s a government loan so it’s easy.”
No.

SBA underwriting is often stricter than conventional lending.

Expect:

• Tax returns (2–3 years)
  
  


• Personal financial statements
  
  


• Business financial statements
  
  


• Debt schedules
  
  


• Credit review
  
  


• Cash flow analysis
  
  


• Industry risk review
  
  

“There’s no credit requirement.”
False.

Most SBA lenders require:

• Strong personal credit (often 620+ minimum)
  
  


• Clean credit history
  
  


• Acceptable debt-to-income
  
  


• No serious recent delinquencies
  
  

“Can I get approved with no revenue?”
Rarely.

Most SBA loans require:

• Existing business revenue
  
  OR
  
  


• Strong projections + industry experience (for acquisitions)
  
  

Startups face higher scrutiny.