Frequently Asked Questions

Most for-profit businesses operating in the United States are eligible for SBA financing. Common eligibility requirements include meeting the SBA's size standards for your industry, demonstrating the ability to repay the loan (typically a debt service coverage ratio of at least 1.1:1), having a personal credit score of 650 or higher (680+ preferred), and being current on all federal obligations. The fastest way to find out is to complete our free pre-qualification — it takes about five minutes and doesn't affect your credit.

Most lenders look for a personal credit score of 650 or above, with 680+ offering the strongest terms. As of March 2026, the SBA eliminated the mandatory SBSS score for 7(a) small loans, giving lenders more flexibility in how they evaluate credit. Strong cash flow can sometimes offset a lower credit score.

You may still qualify, but be aware that SBA loan proceeds cannot be used to refinance MCA debt — this was prohibited under the June 2025 SOP update. Additionally, your MCA payments will count against your debt service coverage ratio, which could affect your eligibility. We'll evaluate your full financial picture during pre-qualification.

Absolutely — business acquisitions are one of the most common uses of SBA 7(a) financing. You'll typically need a 10% equity injection, relevant industry or management experience, and a business with demonstrated cash flow that supports the purchase price. Our buying power calculator on the website can give you an initial estimate, and our team will walk you through the full process.

For SBA 7(a) loans, your business must operate in the United States. For USDA B&I loans, your business generally needs to be in a rural or suburban area — and you might be surprised how broadly the USDA defines "rural." Many suburban communities qualify. We can check your eligibility based on your business address.

A denial at one lender doesn't mean you're ineligible. Different lenders have different credit appetites, internal policies, and areas of expertise. In many cases, deals that were declined elsewhere can be restructured or matched with a different bank partner through our platform. We're happy to take a second look.

Lendesca is an originating Lender Service Provider (LSP). That means you work with us directly from day one. You upload your documents through our secure portal, our AI processes and validates them automatically, our experienced underwriters structure the credit, and our bank partner funds the loan. You get a dedicated SBA team handling everything — without being bounced between departments at a bank.

An LSP is a company authorized to perform services on behalf of SBA lenders, including loan origination, processing, underwriting support, closing, and servicing. Lendesca is an originating LSP — meaning we source the borrowers and run the full origination lifecycle. Our bank partners provide the funding and hold the loan asset.

Your loan is funded by one of Lendesca's bank partners — FDIC-insured community banks and financial institutions. Lendesca handles the origination process; the bank provides the capital and holds the asset. You'll know who your lending bank is before closing.

The core documents include three years of personal and business tax returns, a year-to-date profit and loss statement and balance sheet, a business debt schedule, two to three months of business bank statements, personal financial statement (SBA Form 413) for each owner with 20%+ ownership, business licenses and formation documents, and a resume for each key owner. For acquisitions, you'll also need the purchase agreement and a business plan or acquisition narrative. Our portal will tell you exactly what's needed for your specific situation.

Our initial pre-qualification does not require a hard credit pull. A hard inquiry will occur later in the process when underwriting begins, but by that point, you'll already know whether your deal is likely to be approved.

Yes. Lendesca provides a borrower portal where you can see exactly where your application stands at every stage — from document upload through closing. No more wondering what's happening with your deal.

Your loan will be serviced by your bank partner (or their designated servicer). You'll make regular payments according to the terms of your loan agreement. If you have questions after closing, our team remains available to help.

Our platform is built around current SBA SOP requirements and updates in real time as procedural notices are issued. Every loan file we deliver is structured to meet SBA documentation, eligibility, and underwriting standards. We track SOP changes, citizenship rules, SBSS updates, and all other regulatory shifts so your compliance team doesn't have to build that infrastructure internally.

Your credit team receives a fully structured loan file including validated borrower financials, a completed credit memo, cash flow analysis, collateral assessment, and all required SBA documentation. Our AI processes and cross-validates documents before any human reviews them, which reduces errors and eliminates the manual data entry that typically creates compliance risk.

Most bank partnerships are operational within 30 to 60 days of agreement, depending on the complexity of your internal credit approval process and any regulatory requirements specific to your institution. We handle the onboarding and integration.

Yes. You define your credit box — loan size range, geographic preferences, industry inclusions or exclusions, collateral requirements, and risk appetite. We originate within those parameters and only deliver deals that fit your criteria.

Lendesca handles the full secondary market process for the guaranteed portion of your SBA loans. We manage the sale, pricing, and settlement, allowing you to capture the premium while retaining the unguaranteed portion and the servicing relationship. This is a significant source of non-interest income for our bank partners.

SBA loans generate returns through multiple channels: interest income on the unguaranteed portion, origination fees, servicing fees, and secondary market premiums on the sale of the guaranteed portion. The combined economics are highly attractive relative to conventional commercial lending, with significantly lower credit risk due to the government guarantee.

Volume depends on your credit appetite and the parameters you set. Our platform is designed to scale — the same AI infrastructure that processes one deal per week can process dozens. We work with you to ramp production at a pace that fits your capacity and risk management framework.

Our leadership team has collectively funded over $18 billion in government-guaranteed loans across more than 668,000 businesses over 25+ years. We've operated through every SBA policy cycle, rate environment, and SOP revision in the last two decades. That experience is built into our underwriting standards and compliance infrastructure.

Yes. SBA and USDA loans originated through our platform and funded by your bank qualify for Community Reinvestment Act credit, depending on the borrower's location and income characteristics. We can help you evaluate CRA eligibility as part of the deal structuring process.

Once you submit a deal, our team evaluates the borrower's eligibility, financial strength, and deal structure. If the deal is viable, we move the borrower into our processing pipeline — document upload, AI extraction and validation, credit packaging, underwriting, and closing. You'll be informed at each major milestone.

Yes. Our referral partner portal gives you real-time visibility into where each of your deals stands in the pipeline — from initial submission through funding. You'll never have to chase us for a status update.

Yes, once the deal enters processing, our team works directly with the borrower on document collection and application questions. We coordinate with you on any deal structure or relationship-sensitive matters. Your client relationship is respected throughout the process.

If a deal doesn't meet SBA eligibility requirements, we'll tell you why and explore alternatives. In many cases, a deal that doesn't work as an SBA loan may qualify for USDA financing or a commercial term loan. We also work with our borrowers to identify what needs to change for future eligibility — whether it's credit improvement, cash flow strengthening, or ownership restructuring.

SBA regulations have changed significantly over the past year — citizenship requirements, SBSS scoring, equity injection rules, and more. Our compliance infrastructure updates in real time as the SBA issues procedural notices. If a deal in your pipeline is affected by a rule change, we'll flag it immediately and work with you to determine whether the deal can be restructured, routed to an alternative program, or needs to be paused until the borrower resolves a specific issue.

Referral fees are paid upon successful funding of the loan. Fee structures are outlined in your referral partner agreement and vary based on deal size and type. We're transparent about compensation — you'll know what to expect before you send your first deal.

No. You're free to work with other lenders and LSPs. We earn your repeat business by closing deals faster and keeping your clients informed — not by locking you into an exclusive arrangement.

Requirements vary by state and deal type. In most cases, a straightforward referral does not require a broker license. However, if you're actively structuring deals, negotiating terms, or acting as an intermediary, licensing may be required in your jurisdiction. We recommend consulting with a compliance professional if you're unsure. Lendesca does not provide legal advice on licensing requirements.

Contact us through lendesca.com/partners or reach out directly to our partnerships team. We'll walk you through the agreement, get your portal access set up, and have you ready to submit deals within days.