Let’s face it—not every year is a record year. Whether it was rising costs, slower demand, or just a shift in the market, plenty of business owners saw 2024 revenue take a dip compared to 2023.

So here’s the big question:

Can you still get approved for an SBA loan if your business income declined year over year?

The short answer? Yes—but it depends on why the revenue dropped and how strong the rest of your financial profile looks.

Let’s break it all down.

A Decline Doesn’t Automatically Mean a Denial

SBA lenders are used to seeing ups and downs in small business revenue. Especially after COVID, inflation, labor challenges, or industry-specific shakeups.

But a drop in revenue does raise red flags—so you’ll need to be ready to explain it.

Here’s what lenders want to know:

• Is the business still profitable despite the lower revenue?
• Was the drop a temporary setback, or part of a long-term decline?
• Are you trending back up in 2025 so far?
• Did your expenses increase disproportionately?

If your business still shows positive cash flow, you're not out of the game.

How It Affects Your SBA ETRAN (SBSS) Score

One of the biggest early hurdles in SBA approval is the SBSS/ETRAN score—a numeric blend of:

• Your personal credit score
• Your business deposits/revenue trends
• Any losses or profits shown on tax returns
• Public records like liens, judgments, or defaults

If your 2024 numbers were lower than 2023, your score may drop.

But you’re not automatically disqualified—especially if other areas of your profile are strong.

💡 Pro Tip: Some lenders weigh your most recent year more heavily. Others average your last two years. It varies.

What You Can Do If Revenue Dropped in 2024

If your business earned less in 2024, here are a few smart moves to improve your SBA approval odds:

1. Show Profitability, Even on Lower Revenue

Lenders love efficiency. If you made less in 2024 but still turned a profit, that’s a win. Clean, filed tax returns showing a net gain will carry a lot of weight.

2. Present Year-to-Date Bank Statements for 2025

If things are already bouncing back this year, provide the first 3–6 months of 2025 business bank statements. Lenders like to see momentum—even if last year was slow.

3. Explain the Dip

A quick, clear letter explaining why revenue dropped can help:

• Lost a major client but replaced them in Q1
• Moved locations and paused operations for a few months
• Reinvested in growth, causing short-term losses
• Seasonal impact or a weather-related event

Lenders want to know the dip was intentional, explainable, or temporary.

4. Run Your SBA Speed Score

Before applying, check where you stand.

✅ No credit pull

✅ No cost

✅ Just 12 questions

✅ Instant score range + estimated approval amount

Use SBAscore.com to get your SBA Speed Score and see if you're close to approval range.

Final Thoughts: It's About the Whole Picture

SBA lenders don’t make decisions on just one number. They look at the entire package:

• Credit profile
• Cash flow
• Bank deposits
• Industry
• Collateral (sometimes)
• Time in business
• And yes—year-over-year performance

But a single down year? That can be overcome.

The key is to frame the dip in context, and show that your business is still stable, resilient, and positioned for growth.

Want to See If You're Still SBA-Eligible?

Find out now with no risk, no credit pull, and no application:

👉 Check My SBA Score at SBAScore.com

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