Eligibility minimums by loan type (2026): Equipment financing: 550+ FICO, 6+ months in business, $10K+/mo revenue. Working capital loan: 600-680+ FICO, 6-12 months TIB, $15-25K+/mo. SBA 7(a): 660+ FICO, 2+ years TIB, sufficient cash-flow coverage. Conventional bank: 680-720+ FICO, 2-3 years TIB. MCA: 500+ FICO, 3-6 months TIB. Invoice factoring: customer credit (not yours), 6+ months TIB. CRE: 680+ FICO, 25%+ down, DSCR 1.20+. Match your file to the product; do not waste credit pulls on products you don't fit.
Most failed business loan applications come from applying to the wrong product. A 620 FICO submitting an SBA application gets declined; the same borrower would have qualified for equipment financing or a working capital loan. This page is the matrix: minimums, ranges, and disqualifiers by product. Match your file to the right products before applying. For broader context see how U.S. lenders decide and business loan documents checklist.
2026 Eligibility Matrix
| Product | Min FICO | Min TIB | Min Revenue | Other |
|---|---|---|---|---|
| Equipment Financing | 550-600+ | 6 months | $10K/mo | Vendor invoice + insurance |
| Working Capital Loan | 600-680+ | 6-12 months | $15-25K/mo | Steady deposits |
| Business Line of Credit | 660-700+ | 1-2 years | $15-25K/mo | DSCR 1.20+ |
| Term Loan | 660-680+ | 2 years | $25K+/mo | DSCR 1.20+ |
| SBA 7(a) | 660-680+ | 2 years | DSCR 1.15+ | Owner equity 10%+ |
| SBA Express | 680+ | 2 years | DSCR 1.20+ | Up to $500K |
| SBA 504 | 680+ | 2 years | DSCR 1.20+ | Owner-occupied 51%+, 10% equity |
| Conventional Bank Term | 680-720+ | 2-3 years | $25K+/mo | DSCR 1.25+ |
| Commercial Real Estate | 680+ | 2 years | DSCR 1.20-1.40 | 25%+ down |
| Bridge Loan | 600+ | N/A typically | Asset-based | Clear exit (refi or sale) |
| Hard Money CRE | 600+ | N/A | Asset-based | 25-40% down |
| Fix-and-Flip | 620+ | N/A (experience preferred) | Asset-based | 10-20% down + reserves |
| Revenue-Based Financing | 550+ | 6 months | $15K/mo | Consistent monthly revenue |
| Merchant Cash Advance | 500+ | 3-6 months | $10K/mo | Strong bank statements |
| Invoice Factoring | No min on owner | 3-6 months | B2B AR | Customer credit drives qualify |
Universal Disqualifiers
Some issues block almost every product:
- Open bankruptcy — Chapter 7 within 24 months, Chapter 11/13 typically blocks until plan complete. Discharged 3+ years ago is workable for most products.
- Open federal tax liens — needs payment plan with IRS or release before most lenders will close.
- Federal judgments — usually require resolution.
- Active loan defaults on existing business debt.
- FICO under 500 — even MCA tightens. Co-signer often required.
Prohibited Industries
Some industries face product-specific or near-universal blocks:
- Cannabis — federally illegal, blocks all federally-related (SBA, FDIC-insured banks). Specialty cannabis lenders exist but cost is materially higher.
- Gambling — blocked by SBA; some conventional lenders accept regulated/licensed operators.
- Adult entertainment — blocked by SBA and most banks; specialty lenders exist.
- Investment real estate (passive) — blocked by SBA (must be operating business); conventional CRE is the path.
- Pyramid / multi-level marketing — blocked by SBA and most conventional.
- Lobbying or political activity — blocked by SBA.
Next Step
Want to know exactly which products fit your file before applying? Find products you actually qualify for — one application matched to lenders whose eligibility boxes match yours.
Frequently Asked Questions
What credit score do I need for a business loan?
Depends on the product. MCA: 500+. Equipment financing: 550-600+. Working capital: 600-680+. Conventional bank: 680-720+. SBA 7(a): 660-680+. Higher credit = better rates and terms within each product.
What is the minimum time in business?
MCA: 3-6 months. Equipment financing: 6 months. Working capital: 6-12 months. Conventional: 2-3 years. SBA: 2 years. Newer businesses face tighter pricing on most products and full disqualification on some.
How much revenue do I need?
Most lenders require $10K+ monthly revenue ($120K+ annual). Working capital lenders typically want $15-25K/mo. SBA and conventional underwrite based on cash-flow coverage of debt service rather than absolute revenue floors.
What disqualifies me from a business loan?
Common disqualifiers: open bankruptcy or recent (under 3 years discharged), open tax liens, federal judgments, FICO under 500, less than 3 months in business, prohibited industries (cannabis federally, gambling for SBA, certain adult businesses). Most other issues can be worked around with the right lender.
Can I get a business loan with bad credit?
Yes, but options narrow as FICO drops. 600+ opens equipment financing and most working capital. 550+ opens specialty equipment and some MCA. 500+ opens MCA and some specialty WCL. Below 500 usually requires a co-signer with stronger credit.
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