What does it take to get an SBA loan nowadays?

We call it

The Three C’s

Credit. Cash Flow. Clean File.

Banks weigh these three things most when they review an SBA loan.

If one is holding you back, we'll show you what it is and how to fix it.

Get my ScoreCard

No impact on your credit. Free.

Rather talk it through? A live SBA analyst is in Monday to Friday, 9am to 6pm EST: 1-888-491-0491

1 of 3 ticked

Credityour score

665

Close. A few points usually come from lower card balances.

Cash Flowcovers the payment

1.12x

The business covers the payment. That clears the bar for loans up to $350K.

Clean Fileone thing to clear

Most of it has a fix, and we map it with you.

Open tax liens or judgments?

Cash advances still being paid?

C is for

Credit

Your personal score goes first.

On a smaller SBA loan there can be no collateral behind the money, which means the bank is betting on you. So before anything else, they look at your credit. It decides which doors are open today and which are one small move away.

The line: 680 and up is the fast lane. 640 to 679 is close.

620+Line of credit
650+Traditional SBA
680+Fast-track SBA
720+Fast-track conventional

A few points usually come from lower card balances and on-time payments, and we show you which ones move it.

We need: Your signed application.
You get: Your credit score, and the tier it puts you in.

Try it

665

Close. A few points usually come from lower card balances.

C is for

Cash Flow

Does the business cover the payment, with room to spare?

Banks do not want to see it tight. We read the numbers off your tax return and measure them against the payment on what you are asking for. Add back what is not real cash out the door, like depreciation and interest, and see what is left.

The line: Covering the payment 1.10 times over is good. 1.25 is strong.

1.00x1.10x good1.25x strong

Lost money last year? A profitable current year can offset it. A right-sized request moves coverage too.

We need: Your most recent business tax return.
You get: Your coverage ratio: how many times the business covers the SBA payment.

Try it

1.12x

The business covers the payment. That clears the bar for loans up to $350K.

C is for

Clean File

Nothing in the file that makes a bank stop reading.

No open tax liens or judgments. Your existing debt sorted out and counted the right way, because not everything that looks like a cash advance is one. A term loan, an equipment note or a business card is not.

The line: Clear file, clear yes.

No open tax liens
No judgments
Existing debt sorted out and counted the right way
Nothing in your recent statements a bank would flag

If something does need clearing, most of it has a fix, and we map it with you before a bank ever sees it.

We need: Your last three months of business bank statements.
You get: A straight read on whether your file is clean, and what to clear if it is not.

Try it

Most of it has a fix, and we map it with you.

Open tax liens or judgments?

Cash advances still being paid?

Your ScoreCard

Some of it instantly. All of it in 1 business day.

Upload your bank statements and within minutes you see what a bank sees first: deposits, average balance, negative-balance days, recurring payments. Add your tax return and your cash flow reads back the same way. Your full ScoreCard, every C confirmed by your analyst, comes within 1 business day of the last piece, with your SBA Roadmap: what to do first, what to do next and when we look again.

Each piece you add reads back within minutes, and that C fills in. Nothing a bank sees until you are ready.

Sample ScoreCard

Getting started

Harbor Light Electric LLC

Each C ticks as the piece it needs comes in.

CreditWaiting on your application
Cash FlowWaiting on your tax return
Clean FileWaiting on your bank statements

An example. Yours is built from your own documents.

What is the SBA ScoreCard?

The Three C’s SBA ScoreCard is Irving Fund’s SBA-readiness assessment. It evaluates your Credit, your business’s Cash Flow and the issues that affect a Clean File before full SBA underwriting, then shows a pass or fail on each C and what to address next. It is an Irving Fund framework for the things lenders weigh most, not an official SBA test, and it is not an approval or a commitment to lend.

How it works

Complete your application. A soft check, never a hard pull. It starts C for Credit.
Add your last three months of business bank statements. Within minutes you see what a bank sees first: deposits, average balance, negative-balance days and any recurring payments that look like financing.
Add your most recent business tax return. Revenue, net income and the add-backs an SBA lender gives you credit for. That is C for Cash Flow.
Get your pass or fail on Credit, Cash Flow and Clean File. Every C confirmed by an Irving Fund analyst within one business day of the last document.
Get your SBA Roadmap. What to do first, what to do next and when we look again.

How Irving Fund evaluates SBA readiness

Credit looks at the owner’s personal credit profile and the lane it puts the file in: 680 and up is the fast track for SBA, 650 gets a serious look, 620 opens a business line of credit while you build. Cash Flow reads the business tax return the way an SBA bank does: net income plus the add-backs (depreciation, amortization, interest, sometimes owner compensation) against the annual payment on the loan you asked for, with 1.10x coverage as the bar and 1.25x as strong. Clean File reads the bank statements for the positions that actually count, negative-balance days, and checks for open tax liens or judgments. Not everything that looks like a cash advance is one, and we sort that out before any bank sees the file.

Good questions

What is the SBA ScoreCard?

The Three C's SBA ScoreCard is Irving Fund's SBA-readiness assessment. It evaluates your Credit, your business's Cash Flow and the issues that affect a Clean File before full SBA underwriting, then shows a pass or fail on each C and what to address next. It is an Irving Fund tool, not an SBA program.

How do I know if I am ready for an SBA loan?

Three things decide most SBA files: your personal credit, whether the business's cash flow carries the proposed payment, and whether the file is clean of items a bank would flag. The ScoreCard checks all three from your application, three months of bank statements and your most recent business tax return.

What credit score is needed for an SBA loan?

There is no single SBA-wide minimum; lenders set their own. In the market we work in, 680 and up is the fast track for SBA, 650 gets a serious look, and 620 opens a business line of credit while you build.

How does cash flow affect an SBA loan?

SBA lenders read your business tax return, add back non-cash items such as depreciation, amortization and interest, and compare the result to the annual payment on the loan you are asking for. Most want that coverage at 1.10x or better; 1.25x reads as strong.

What is the SBA debt service coverage ratio?

DSCR compares qualifying annual cash flow to annual debt service. 1.42x means the business generates about $1.42 for every $1.00 of payment. Above 1.00x the cash flow exceeds the payments; most SBA lenders want 1.10x or more.

Can existing business debt affect an SBA application?

Yes. Cash advances and other financing paid from the operating account count against cash flow and show on the statements. Not everything that looks like a cash advance is one, and sorting out which positions count is part of the Clean File review.

Does checking my SBA ScoreCard affect my credit?

No. It is a soft check only, never a hard pull, so it has no impact on your credit score.

How long does the SBA ScoreCard take?

Some of it is instant: within minutes of your bank statements landing you see what a bank sees first. The full ScoreCard, every C confirmed by an analyst, comes within one business day of the last document.

Does passing the SBA ScoreCard guarantee approval?

No. It is a readiness tool, not an SBA approval, a lender commitment or a guarantee of financing. It shows where you stand on the three things every SBA lender checks so we can place you at the right bank the first time.

What does it cost?

Nothing. It is free, and you are under no obligation.

Keep reading

What it takes to get an SBA loanThe Three C's in depth: credit lanes, the coverage ratio, and what a clean file means.SBA financingThe programs, amounts and terms.Rates and feesWhat it costs, laid out plainly.More guidesPlain-language answers to the questions we hear most.

Tick all three and the right bank says yes faster. Miss one and we show you exactly how to fix it, in order.

Get my ScoreCard

No impact on your credit. Free.

Rather talk it through? A live SBA analyst is in Monday to Friday, 9am to 6pm EST: 1-888-491-0491

Educational information, not an approval or a commitment to lend. Irving Fund is not a bank.