SBA Prequalification Program

The SBA's prequalification program assists potential borrowers in securing loans and developing viable loan application materials through intermediaries. Low-income, disabled, rural or specialized business owners, as well as veterans, new businesses and exporters, are able to have their applications for loans of $250,000 or less reviewed before they are submitted for approval. If an intermediary feels the application has merit, they forward it to the SBA. If the SBA grants approval, it issues a commitment letter on the borrower’s behalf. The letter serves as proof of the SBA’s willingness to guaranty the loan to a lender if the loan is made under certain terms and conditions. The intermediary who helped the borrower with the application then helps the borrower locate a lender.

Consumers can find out if there is a pre-qualification intermediary in their area by contacting their local SBA office. These intermediaries can be for-profit organizations that charge a fee for helping with SBA loans, or Small Business Development Centers affiliated with the SBA that do not charge a fee.