Transparency into the algorithmic model behind your approval odds.
The SBA Readiness Score™ is a proprietary mathematical model designed to estimate your likelihood of qualifying for Small Business Administration (SBA) financing. It is built around official SBA program rules (SOPs) and common underwriting guidelines used by top SBA lenders.
Your Readiness Score is calculated on a 100-point scale. We evaluate 10 critical data points across 6 primary categories. Here is how those categories are weighted in our algorithm:
Lenders heavily favor established businesses with a proven track record. Startups receive fewer points but can still qualify with strong business plans and projections.
While the SBA does not mandate a universal minimum credit score for most programs, most lenders require strong personal credit (commonly 680+) to demonstrate historical financial responsibility.
Debt Service Coverage Ratio (DSCR) is arguably the most critical underwriting metric. It measures your ability to comfortably afford loan payments out of operational cash flow. Lenders typically look for a DSCR of 1.15x or higher.
Revenue scale indicates market stability and the ability to absorb economic shocks.
Certain loan purposes (like buying commercial real estate) are viewed as lower risk than others (like funding working capital). The requested amount also dictates which specific SBA programs (e.g., Express vs. 504) you are eligible for.
The presence of tangible collateral improves your score. Conversely, recent bankruptcies or operating in high-risk/ineligible industries act as severe penalties or hard disqualifiers in the algorithm.
If any of your inputs fall below standard underwriting thresholds (e.g., credit score under 650, or less than 1 year in business), the algorithm triggers a Risk Flag. These flags do not mean you cannot get a loan, but they identify specific areas you will need to mitigate with a lender—such as providing additional collateral, a stronger business plan, or a larger down payment.
Our model is actively maintained to reflect current SBA Standard Operating Procedures. For example, our 2026 update incorporates the latest rules regarding allowable interest rate spreads, waived fees for small dollar loans, and the expanded ability to combine 7(a) and 504 loans for up to $10 million in total financing.