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Money & Financing

What credit score do I need?

For SBA acquisition loans, plan on 680+; some lenders go lower.

Practical Explanation

Most SBA preferred lenders look for a personal FICO of 680 or higher, with no recent bankruptcies or charge-offs. Seller-financed deals are more flexible — the seller decides. Strong cash flow in the target business can sometimes offset a weaker credit profile.

Real-World Example

A buyer with a 705 FICO and 10% down is approved for an SBA 7(a) loan in 75 days.

Typical cash required
Not directly related — but lower scores often mean higher down payment.
Experience required
Not directly related.

Advantages

  • Predictable benchmark
  • Improvable over 6–12 months if needed

Risks

  • !Below 650 limits SBA options significantly
  • !Hard pulls on credit during shopping

Frequently Asked Questions

What if my score is 620?
Look at seller-financed deals or partner with someone whose credit qualifies for the bank loan.

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