When considering SBA loans, for your business one crucial factor that lenders will assess is your credit score. It's important to aim for a credit profile within the range as it increases your chances of qualifying and securing terms. So what kind of credit score should you strive for when applying for an SBA loan?

The SBA has established credit standards that lenders take into consideration. To increase the likelihood of SBA loan approval it is recommended to have a credit score of 680. While applicants with scores below 680 may still have a chance of approval they might need to provide documentation or seek a cosigner.

For the application an excellent credit score would be 720 or higher. The higher your score the interest rates and loan terms you are likely to receive. Lenders view a credit score as an indicator that you pose risk in defaulting on the loan.


Apart from looking at the value of your score lenders also scrutinize factors such as your payment history, existing debt levels and income stability. Demonstrating a track record of paying bills on time maintaining debt relative to income levels and having stable employment income will further bolster your case.

Before applying for an SBA loan it's advisable to take some time to review your credit reports for any errors and work, towards reducing balances.

Working towards improving your credit profile can give your score a boost. Increase your chances of securing an SBA loan. Aim to reach a credit score of 680 or higher as it puts you in the position to obtain approval, from lenders.