13 CFR 120.150 : Business Credit And Assistance (Parts 1-100 To Parts 501-599) — (Parts 1-100 To Parts 501-599) — Small Business Administration (Parts 1-100 To Parts 148-199) — Business Loans (§ 120.1 To § 120.1900) — Policies Applying To All Business Loans (§ 120.100 To § 120.197) — Credit Criteria For Sba Loans (§ 120.150 To § 120.160) — What are SBA's lending criteria?

The applicant (including an Operating Company) must be creditworthy. Loans must be so sound as to reasonably assure repayment. SBA will consider:

(a) Character, reputation, and credit history of the applicant (and the Operating Company, if applicable), its Associates, and guarantors;

(b) Experience and depth of management;

(c) Strength of the business;

(d) Past earnings, projected cash flow, and future prospects;

(e) Ability to repay the loan with earnings from the business;

(f) Sufficient invested equity to operate on a sound financial basis;

(g) Potential for long-term success;

(h) Nature and value of collateral (although inadequate collateral will not be the sole reason for denial of a loan request); and

(i) The effect any affiliates (as defined in part 121 of this chapter) may have on the ultimate repayment ability of the applicant.