How To Qualify For An SBA Loan In 2025

### **SBA Loan Requirements: How To Qualify**

Shopify outlines the key requirements to qualify for SBA loans in their latest blog post as of 2024. Here is a summary of the main points:

**1. For-Profit Operation:**
– Requires the business to be a for-profit entity. Exceptions are made for for-profit subsidiaries of non-profit organizations.

**2. US-Based Business:**
– The business must operate and be physically located in the US, including US states and territories.
– The business must be majority-owned by US citizens or lawful permanent residents.

**3. Credit Score Minimums:**
– Personal credit scores of 640 or higher are often required. Some lenders may have higher requirements, such as 690 or more.
– SBA 7(a) small loans require a minimum FICO Small Business Scoring Service (SBSS) score of 155.

**4. Owner’s Invested Equity:**
– While the SBA has loosened equity requirements, for example, loan amounts above $500,000 generally require a 10% equity injection from the owner.
– Lenders may have their own requirements that differ from these standards.

**5. Specific Requirements by Loan Type:**
– **SBA 7(a) Loans:**
– Loan sizes range from $500,001 to $5 million.
– Typically require a personal credit score of around 640 or higher.
– A 10% down payment is often required.
– Funds can be used for various purposes, including working capital, real estate acquisition, and debt refinancing.
– Smaller 7(a) loans ($500,000 or less) may not require collateral, but certain lenders might still require it.

**6. SBA Loan Eligibility FAQ:**
– SBA loans typically require a thorough application process with stricter review processes, as they offer more favorable terms.
– The easiest SBA loan to get approved for is the SBA Express loan, which has less stringent requirements but lower maximum guarantees.

For detailed information and specific requirements tailored to different loan types, consult the Shopify blog on SBA loan requirements[1].