Demystifying the Small Business Scoring Service (SBSS) for SBA Loans

Demystifying the Small Business Scoring Service (SBSS) for SBA Loans:

The Investor Financing Podcast provides insights on securing funding for small businesses, focusing on the Small Business Scoring Service (SBSS) used to evaluate the creditworthiness of small businesses applying for SBA loans.

The SBSS is a credit scoring system that assigns a score between 0 and 300 to a business based on factors like personal credit history, age of the business, revenue, and industry.

A higher score indicates a lower credit risk for the lender, and the score is designed to provide a quick and standardized measure of credit risk. Other factors like the business plan, industry experience, and management team strength may also be considered by SBA lenders.

The SBA typically looks for a score of 155 or higher, but there are exceptions based on various factors. To increase the chances of securing SBA financing, small business owners can work on improving personal credit, building a strong business plan, choosing an industry with strong market demand, and demonstrating management expertise.

Commercial mortgage advisors can also help guide small businesses through the SBA loan application process. It is important to understand the guidelines of the SBA lender and the bank that offers SBA financing.

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Timestamps:
(00:08) Beau discusses Small Business Scoring Service (SBSS) that is used to evaluate the creditworthiness of small businesses applying for SBA Loans
(00:27) What is SBSS?
(00:37) SBSS score is a number between 0 and 300, with a higher score indicating lower credit risk for lenders
(01:07) Other factors such as business plan, industry experience, and management team strength are also considered by SBA lenders
(01:29) Practical tips for securing SBA financing include improving personal credit, building a strong business plan, choosing a successful industry, and working with a commercial mortgage advisor
(02:14) Understanding how the SBSS score is calculated
(02:18) Other factors considered by SBA lenders
(02:33) The SBA typically looks for a score of 155 or higher
(02:43) Working with a commercial mortgage advisor and direct SBA PLP lender is preferred as they make the decision in-house and follow SBA guidelines.
(03:40) To help you navigate the ins and outs of the SBA loan process

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#SBA #SBAFinancing #SBSS #SmallBusinessScoringService

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

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