SBA Qualification Checklist

1st & Main Partners is proud of its well-developed lender relationships. Over the last few months, guidence at most banks has stricter requirements for borrowers and business qualifications in response to the new Administrations changes in the SBA program. Here is a short list of requirements provided from a top lending partner:

SBA Credit Guidelines (need to obtain 4 of 6)

1) Positive DSC for the 2 most recent full year tax returns...

(at least 1:1) and the most recent full year tax return and interim period to be at least 1.30x.

2) Increasing revenue trend of at least 10% and increasing cash flow available ...

to service debt trend for the subject business for the most recent year end.

3) Personal Guarantor(s) must live within 2-hour distance of subject business ...

Guarantors planning to move to the subject business location will satisfy this requirement.

4) Direct industry management experience of at least 3 years ...

required of all Personal Guarantor(s).

5) Full Guarantors must have a liquidity ratio of at least 1:1 - personally & business ...

Liquidity ratio is defined as all post close liquidity (excluding working capital being provided) divided by all annual debt obligations (personal and business).

6) Credit scores...

of the guarantors must be 700 or higher.