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What are lenders looking for within the 7(a) loan program?

Generally, lenders when evaluating a 7(a) loan are looking at/for the following items. You will see that some of the evaluation criteria have to do with the business and some are about you as the CEO or Partner in a business.

  • Good credit (no unpaid charged of accounts, bankruptcies in the past 7 years, foreclosures, etc.)
  • Ability to repay
  • Management capability
  • Spending habits
  • Balance sheet (there should be no discrepancies)
  • Collateral
  • Sufficient investment by owner (preferably at least 25%-35%)