Why did one bank reject my SBA Loan, but another approved me with the same SBSS Score?

Banks can make different SBA loan decisions even when you have the same SBSS score because each lender has its own unique underwriting criteria and risk tolerance beyond just the score itself. I can confirm that while the SBSS score is a major factor in SBA loan eligibility, it is not the only consideration. Here’s why outcomes can differ:

1. Different Minimum Score Thresholds: Each SBA lender sets its own minimum SBSS score for approval. One bank may require a higher score than another, so you could be declined by one and approved by another with the same score.

2. Additional Underwriting Factors: Lenders also consider other elements, such as:

• Collateral and guarantees
• Cash flow and profitability
• Industry risk (NAICS code)
• Existing banking relationship
• Public records (liens, judgments, bankruptcies)

These factors can weigh differently from one lender to another, impacting the final decision even if your SBSS score is unchanged. For more on what banks look for, see our blog: Understanding The Top Ways to Get an SBA Loan.

3. Lender Preferences and Programs: Some banks specialize in certain industries or business types, and their approval criteria may reflect that focus. Others may have internal policies or portfolio limits that influence their willingness to approve certain loans.

Summary:

• Your SBSS score is crucial, but not the only factor.
• Each lender has its own approval standards and risk appetite.
• Matching with the right lender for your profile is key to getting approved.