The main factor that determines whether your SBA loan will affect your credit is if you are personally liable for the loan or not. If you have put your own money up and named yourself liable for the loan repayments, thenyes, the loan can affect your credit.
People also ask
Can I get an SBA loan with bad credit?
But getting an SBA loan with bad credit could also affect the terms, such as maturity date and interest rate. Your business credit score is attached to an Employer Identification Number (EIN), which is akin to a social security number, only it鈥檚 for your business. You can apply for an EIN with the IRS.
What credit score is needed for an SBA 7 (a) loan?
When it comes to securing an SBA 7 (a) loan, both your personal and business credit score will come into play. On the personal side, this means your FICO score. This number falls within a range of 300-850 and is assigned by the three major credit bureaus 鈥?Experian, Equifax, and Transunion.
Does a business loan affect your credit score?
This also positions you as a cosigner of sorts, which means the debt can be reported on your personal credit report. Similarly, if you personally guaranteed a business line of credit, it can impact your credit history. Personal loans鈥攊ncluding home equity loans鈥攗sed to fund your businesses will affect your personal credit score as well.
What does the SBA look for in a loan?
Considering the SBA backs up to 85% of the loan, they have standards, too. They are primarily looking for good character, a proven ability to manage your credit, and the ability to repay the loan. Can I get an SBA loan with bad credit? As mentioned, it鈥檚 up to the lender to approve you for an SBA 7 (a) loan.