The "No-Score" Survival Guide: How to Ace Your SBA 7(a) Small Loan Underwriting

With the FICO® SBSS score requirement officially ending on March 1, 2026, many business owners assume getting a loan just got "easy." While the "hard stop" of a low credit score is gone, the SBA has replaced it with a more holistic (and sometimes more rigorous) review of your business’s health.

Under Procedural Notice 5000-875701, lenders are no longer "gate-kept" by an algorithm. Here is exactly what they will be looking for instead:

1. The Debt Service Coverage Ratio (DSCR) is King

Without the SBSS score, lenders must now prioritize your Debt Service Coverage Ratio.

• The Magic Number: For 7(a) Small Loans, your DSCR must be at least 1.1:1 on a historical or projected basis.

• What it means: For every $1.00 of debt payment (including your new SBA loan), your business must show at least $1.10 in operating cash flow.

2. Bank Statement Analysis

Lenders are now required to analyze at least two months of commercial bank statements. They aren't just looking at the balance; they are looking for:

• Consistent revenue deposits.

• The absence of frequent "Non-Sufficient Funds" (NSF) charges.

• A healthy "cushion" after all monthly expenses are paid.

3. "Credit Elsewhere" Justification

Because the SBA is a government-backed program, the lender must still document why you couldn't get a "conventional" loan. Without a low SBSS score to point to, your lender will need to highlight other factors, such as:

• Lack of sufficient collateral.

• The specialized nature of your industry.

• The need for a longer repayment term than a traditional bank offers.

Pro Tip: Don't let your business credit go to seed just because the SBSS is retiring. Many lenders will still use their own internal scoring models, which often look at your Experian Business or Dun & Bradstreet reports.