1. Basic SBA 7(a) eligibility
The SBA says an eligible applicant generally must be an operating, for-profit business located in the United States, meet applicable size requirements, avoid ineligible business activities, be creditworthy, and show a reasonable ability to repay. A lender makes the actual eligibility and credit decision.
2. Sources and uses
The loan request, borrower cash, seller financing, and any other approved source should equal total project cost. An unexplained gap is one of the clearest signs that a deal is not ready for lender review.
3. Repayment capacity
Business cash flow must support existing debt and the proposed loan. BorrowerDesk models annual debt service from the amount, test rate, and term entered, then calculates a planning debt-service coverage ratio. A lender may calculate available cash flow differently.
4. Borrower and guarantor strength
Lenders commonly review personal credit, relevant management experience, borrower cash invested in the transaction, and liquidity remaining after closing. There is no single universal personal credit minimum for every SBA 7(a) lender and transaction.
5. Lender-file readiness
A strong deal can still stall when the file is incomplete. Common items include tax returns, interim financial statements, a personal financial statement, debt schedule, borrower narrative, projections, sources and uses, and acquisition documents when applicable.
What the BorrowerDesk score means
The score measures preparation gaps in the answers supplied. It is not an approval probability, loan offer, prequalification, or substitute for lender underwriting. The formulas and category weights are published in the BorrowerDesk methodology.