Answers ~5 min read Updated
What Credit Score Do You Need for a Business Loan?
Most banks want owners with personal credit scores around 680 or higher. SBA lenders and online lenders can go lower. Here is how lenders use your personal and business scores.
There is no single minimum credit score for a business loan, but most banks look for owners with personal scores around 680 or higher. Many SBA lenders work with scores in the mid-600s. Online lenders may accept 600 or lower, but the cost is usually much higher. Every lender sets its own bar.
These are general ranges, not rules. A strong business with steady cash flow can get past a lower score. A great score won't save a business that can't cover its payments.
Typical score ranges by lender type
| Lender | Personal score most look for | What to expect |
|---|---|---|
| Banks and credit unions | Around 680+ | Lowest rates; most paperwork |
| SBA lenders | Mid-600s and up | Long terms; low down payments |
| Online lenders | 600 or lower | Fast approval; much higher cost |
| Merchant cash advance | Often no minimum | Very expensive; read this first |
Why your personal score matters for a business loan
For most small businesses, the bank asks every owner of 20% or more to sign a personal guarantee. That means you promise to repay the loan yourself if the business can't. So the bank checks your personal credit the same way it would for a home loan.
The business scores lenders check
Your business has its own credit file, separate from yours:
- Dun & Bradstreet Paydex (1 to 100). 80 or higher means you pay suppliers on time.
- Experian Intelliscore Plus (1 to 100). Higher is lower risk.
- Equifax business scores, which look at payment history and credit use.
- FICO SBSS (0 to 300). Many banks and SBA lenders use it for smaller loans.
How to raise your score before you apply
- Pay every bill on time, personal and business. Payment history counts most.
- Keep card and line balances under 30% of the limit.
- Don't open new credit in the six months before you apply.
- Ask suppliers to report your payments to the business credit bureaus.
- Pull your reports and fix errors. You can get free personal reports at AnnualCreditReport.com.
Credit is only one of the things a bank weighs. Cash flow comes first. See what banks look for in a business loan for the full picture, and Chapter 5 for a step-by-step plan to build business credit.
Common questions
What is the minimum credit score for a business loan?
There is no single minimum. Each lender sets its own. As a general guide, many banks look for owner personal scores around 680 or higher, many SBA lenders work in the mid-600s, and online lenders may go to 600 or below at much higher cost.
Do lenders check personal credit for a business loan?
Yes, for most small business loans. Banks usually pull personal credit for every owner of 20% or more, because those owners typically sign a personal guarantee.
Is there still an SBA minimum credit score?
As of March 1, 2026, the SBA no longer requires a minimum FICO SBSS score for 7(a) small loans of $350,000 or less. Each lender now uses its own credit standards, and many still pull the SBSS score.
What is a good Paydex score?
A Dun & Bradstreet Paydex score of 80 or higher means you pay your suppliers on time. Scores above 80 mean you pay early. Below 50 is a warning sign to lenders.