What are lenders looking for within the 7(a) loan program?
Generally, lenders when evaluating a 7(a) loan are looking at/for the following items. You will see that some of the evaluation criteria have to do with the business and some are about you as the CEO or Partner in a business.
- Good credit (no unpaid charged of accounts, bankruptcies in the past 7 years, foreclosures, etc.)
- Ability to repay
- Management capability
- Spending habits
- Balance sheet (there should be no discrepancies)
- Sufficient investment by owner (preferably at least 25%-35%)