13 C.F.R. § 120.150
What are SBA's lending criteria?
The applicant (including an Operating Company) must be creditworthy. Loans must be so sound as to reasonably assure repayment. Lenders and CDCs must use appropriate and prudent generally acceptable commercial credit analysis processes and procedures consistent with those used for their similarly-sized, non-SBA guaranteed commercial loans. Lenders, CDCs, and SBA may use a business credit scoring model. When approving direct or guaranteed loans, Lenders, CDCs, and SBA may consider (as applicable) the following criteria: credit score or credit history of the applicant (and the Operating Company, if applicable), its Associates and any guarantors; the earnings or cashflow of applicant; or where applicable any equity or collateral of the applicant.
Notes of Decisions
Cited in 13
cases (5 in the last 5 years), 1997–2023 · leading case: U.S. Federal Credit Union v. Gateway Radiology Consultants, P.A.
U.S. Federal Credit Union v. Gateway Radiology Consultants, P.A. (2020)
“” 13 C.F.R. § 120.150 . The soundness and repayment criteria include nine factors that the “SBA will consider,” including the “[c]haracter, reputation, and credit history of the applicant,” the “[s]trength of the business,” and the “[a]bility to repay the loan with earnings from…”
Springfield Hosp., Inc., Springfield Med. Care Sys., Inc. v. Guzman (2022)
“10 normal Section 7(a) criteria under 13 C.F.R. § 120.150 ); see also Business Loan Program Temporary Changes; Paycheck Protection Program—Additional Eligibility Criteria and Requirements for Certain Pledges of Loans, 85 Fed.”
Kwiatkowski v. Polish & Slavic Federal Credit Union (2013)
“§ 271 (b); (3) use of illegal lending standards pursuant to 13 C.F.R. § 120.150 (h) and 12 C.F.R. § 528.”
A.B. & S. Auto Service, Inc. v. South Shore Bank of Chicago (1997)
“” 13 C.F.R. § 120.150 . As a participant in the SBA loan guarantee program, South Shore Bank is obligated to consider an applicant’s criminal record provided on SBA Form 912 in its evaluation of a loan applicant’s character.”
Gateway Radiology Consultants P.A. v. Carranza, in Her Capacity as Admin fo the U.S. Sma (2020)
“150 : the applicant’s character, reputation, and credit history; the experience and depth of management; the strength of the business; past earnings, projected cash flow, and future prospects; the ability to repay the loan with business earnings; whether the business has…”
Penobscot Valley Hospital v. Carranza, in her capacity as administrator for the (2021)
“13 C.F.R. § 120.150 . For Section 7(a) loans, the SBA also considers an applicant’s bankruptcy history; applicants are asked to disclose prior bankruptcy filings on Form 1919, the loan application form.”
Calais Regional Hospital v. Carranza, in her capacity as administrator for the (2021)
“13 C.F.R. § 120.150 . For Section 7(a) loans, the SBA also considers an applicant’s bankruptcy history; applicants are asked to disclose prior bankruptcy filings on Form 1919, the loan application form.”
United States Small Business Administration v. Alaska Urological Institute, P.C. (2020)
“Specifically, the Miller Declaration explains that the SBA decided to exclude debtors in bankruptcy because a case-by-case inquiry into the state of their proceedings and the necessary court orders would delay disbursement of funds 123 13 C.F.R. 120.150’s criteria include: “(a)…”
Tradeways, Ltd v. The United States Department of the Treasury (2020)
“at 20,812 (excusing lenders issuing PPP loans from the underwiring requirements contained in 13 C.F.R. § 120.150 ); see also id. at 20,815 (delineating lenders’ obligations under the PPP).”
Carmen's Corner Store v. Small Business Administration (2020)
“13 C.F.R. § 120.150 (a). Therefore, businesses with associates “[c]urrently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction” are also ineligible for financial assistance.”
Defy Ventures, Inc. v. United States Small Business Administration (2020)
“13 C.F.R. § 120.150 (a). Therefore, businesses with associates “[c]urrently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction” are also ineligible for financial assistance.”
Savage v. United States Small Business Administration (2021)
“Under these rules for the PPP, implemented on April 2, 2020, the SBA relaxed the loan eligibility requirements by not requiring PPP lenders to perform the detailed creditworthiness test for loan applications as set forth in 13 C.F.R. § 120.150 . Lenders would instead “rely on…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.