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After a no For owners who were turned down

Business loan denied? Find out what's holding you back.

A no usually comes down to a few things. See your business the way a lender's credit analyst would: the cash flow, the debt, the questions they'd ask, and what to fix before you apply again.

What was the reason? See a sample report
  • No credit check
  • Private numbers blacked out
  • Built on SBA rules
An example result for a made-up business
Example result · made-up business
CloseReadiness grade

You're close. Clear up a few things before you apply.

Your request$450,000SBA 7(a)
Cash flow supports$612,337at SBA's 1.15x
1.00x1.15x1.31x2025, new loan
Debt coverage with the new loan SBA's 1.15x minimum
20241.18x
20251.31x
A lender will ask

Your balance sheet is out of date. Can you send current statements?

Why was my business loan denied?

What reason did the lender give?

Pick the closest one. Some reasons are about your numbers, and LoanPrep checks those the way a lender would. Others it can't see, and we'll say so.

The lender's reason

Pick the closest one to see what it usually means and what to do next.

Business loan denied: what to do next

Ask the lender why, in writing.

Federal rules (the Equal Credit Opportunity Act and its Regulation B) generally let a business that's turned down ask the lender for the specific reasons. Ask in writing, within 60 days of being told no. The rules apply to banks, credit unions and other lenders alike, including SBA lenders.

A specific reason tells you what to work on. "Doesn't meet our standards" doesn't, so ask for more if that's all you get.

Questions worth asking

  • Which numbers fell short, and by how much?
  • Which year did you look at, and would this year's numbers change the answer?
  • Would a smaller amount, a longer term or more money down work?
  • How long should we wait before applying again?

Can I reapply after a business loan denial?

Yes, once what stopped the loan has changed.

Applying again with the same numbers usually gets the same answer. Lenders look again when something is different: a stronger year, less debt, more cash, a smaller request, or answers to the questions they had.

Another lender may also see it differently, because each one has its own policy. That's true of SBA loans too, since they're made by lenders, not by the SBA. A no from one SBA lender isn't a no from all of them.

Before you try again, run a check. You'll see your debt coverage for two years, the largest loan your cash flow supports, what a lender will ask about, and a plan for what to fix. The sample report shows what you get, for a made-up bakery graded Close.

Getting ready for your next lender?

See what lenders look for, the documents you'll need, and how much you could borrow.

Business loan readiness

Find out what to fix before you apply again.

See your business the way a lender will, with a plan for what to change.

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