The SBA has notified lenders that, as of March 1, 2026, it intends to no longer require lenders to prescreen loan applications for 7(a) Small Loans using the FICO SBSS Score. Instead, the SBA permits lenders to use the credit policies and procedures they use for their other similarly sized non-SBA guaranteed commercial loans.
Learn what this change may mean for your small business.
What’s changing with FICO SBSS
SBA guidelines currently state: “All 7(a) Small Loan applications will begin with a screening for a FICO® Small Business Scoring ServiceSM Score (SBSS Score).” The SBA has notified lenders it will no longer require the use of that score as of March 1, 2026.
In June 2025, the SBA raised the required minimum score for the Small Loan program prescreening to 165. The minimum required score was previously raised from 140 to 155 in October 2020. A lower score does not automatically disqualify the application, but triggers a more detailed review.
How FICO SBSS works
The FICO SBSS Score ranges from 0 to 300, with a higher score typically indicating lower risk to lenders. This scoring model can evaluate data from the following sources:
- Consumer credit
- Business credit
- Financial data
- Application data
For the 7(a) Small Loan program, the FICO SBSS Score has been an integral first step in the approval process. According to the National Association of Government Guaranteed Lenders (NAGGL) the FICO SBSS Score “has been used as the sole scoring model for determining creditworthiness for 7(a) Small Loans.”
The SBSS Score is also used by traditional lenders like banks for other non-SBA commercial loans.
What does this change mean for SBA loan borrowers?
Borrowers likely won’t notice a difference in the SBA loan application process in the immediate future.
The SBA reveals the main reason why when it states that lenders may continue to use “their existing scoring models.”
In other words, if they are already using FICO SBSS for these loans — that’s not likely to change anytime soon.
“The safe thing for a lender to do is to stick with SBSS,” says Levi King, Nav CEO, Co-Founder, and Executive Chairman. Banks are highly regulated, he points out, and are unlikely to take the additional risk associated with an abrupt change in underwriting standards.
Banks often adopt new scoring models slowly, over time, preferring to stick with the models that have been tested over time.
As NAGGL pointed out in the comment letter, “the [SBSS model] has been validated and tested based on SBA loan performance, and the Agency has indicated its strong confidence in it as a tool for determining creditworthiness for 7(a) small loans.”
The bottom line: FICO SBSS changes
Small business owners with strong personal and business credit scores often have the widest range of options when it comes to small business financing. Whether a lender uses a FICO SBSS Score or another model, strong business credit may help a business owner shop for financing with more confidence.
Nav is one of the few places that gives business owners the ability to to check a FICO SBSS Score on their business. It also provides unique access to both business and personal credit reports in one dashboard.
This article was published on January 21, 2026.
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler has spent more than 30 years helping people make sense of credit and financing, with a special focus on helping small business owners. As an Education Consultant for Nav, she guides entrepreneurs in building strong business credit and understanding how it can open doors for growth.
Gerri has answered thousands of credit questions online, written or coauthored six books — including Finance Your Own Business: Get on the Financing Fast Track — and has been interviewed in thousands of media stories as a trusted credit expert. Through her widely syndicated articles, webinars for organizations like SCORE and Small Business Development Centers, as well as educational videos, she makes complex financial topics clear and practical, empowering business owners to take control of their credit and grow healthier companies.
Tiffany Verbeck
Content Manager
Tiffany Verbeck is a Content Manager for Nav. She uses her 8 years of experience writing about business and financial topics to oversee the production of Nav’s longform content. She also co-hosts and manages Nav’s podcast, Main Street Makers, to bring small business owners together to share tips and tricks with a community of like-minded entrepreneurs.
Previously, she ran a freelance business for three years, so she understands the challenges of running a small business. Also, she worked in marketing for six years in a think tank in Washington, DC. Her work has appeared on sites like Business Insider, Bankrate, and Mission Lane.