Is it hard to get approved for an SBA loan?
Harder than in 2021 through 2024, by design. SBA restored lender underwriting in 2025 and raised coverage floors in October 2026, and 7(a) loan counts fell about a quarter in fiscal 2026.
The answer,
in full.
Checked against the current SBA rules and forms on October 28, 2026.
Harder than it was from 2021 through 2024, and on purpose. SOP 50 10 8, effective June 2025, brought back the credit-elsewhere test and full lender underwriting on small loans. SBA no longer sets a minimum credit score for 7(a) Small loans (Procedural Notice 5000-875701), so the decision is the lender’s; in practice most look for a personal FICO in the mid-600s or better.
SOP 50 10 8.1, in effect from October 1, 2026, raised the debt-service coverage floor to 1.25 on business acquisitions and owner buyouts and stopped counting projections toward it. Standard 7(a) loans still use 1.15 on historical or projected cash flow. Startups and business acquisitions need a 10% equity injection; on an owner buyout the lender can waive it if the business has the liquidity.
Separately, SBA’s fiscal 2026 totals showed roughly a quarter fewer 7(a) loans than the year before, with a larger average loan.
What makes approval easier is a file the lender can verify in one pass: three years of returns, interim statements, a debt schedule, and an SBA Form 413 for each 20% owner whose numbers match the statements behind them.
Start your statement.
Free for 7 days. No credit card.