SBA SOP 50 10 8.1, B.Ch5.A.4 — Credit Standards for Export Express
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section B.Ch5.A.4 (Credit Standards for Export Express). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 4 provision(s) quoted from SBA's .docx.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, B.Ch5.A.4 — Credit Standards for Export Express — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8.1 B.Ch5.A.4
4. Credit Standards for Export Express The policies that make up SBA’s credit standards begin with the requirements outlined in 13 CFR §§ 120.101 and 120.150. This section provides procedural guidance as to what the Lender should or must consider when analyzing any request for financial assistance that will be guaranteed by SBA. A Lender must analyze each application in a commercially reasonable manner, consistent with prudent lending standards. The cash flow of the Applicant is the primary source of repayment, not any expected recovery from the liquidation of collateral. Thus, if the Lender’s financial analysis demonstrates that the Applicant lacks reasonable assurance of repayment in a timely manner from the cash flow of the business, the loan request must be declined, regardless of the collateral available or outside sources of repayment. To the maximum extent practicable, Export Express Lenders may use their own forms, internal credit memoranda, notes, collateral documents, and servicing and liquidation documentation. In using their documents and procedures, Lenders must follow their established and proven internal procedures used for their similarly-sized non-SBA guaranteed commercial loans.
SOP 50 10 8.1 B.Ch5.A.4.a
a. Processing Method Export Express loans are only processed via an Export Express Lender’s delegated authority. When a Lender submits an SBA 7(a) loan guaranty request under the Lender’s Export Express authority, the Agency does not review the Lender’s analysis of the credit or structure of the loan or line of credit prior to issuing a loan number. The Lender must analyze credit worthiness in accordance with SBA Loan Program Requirements and properly document its file. The Export Express Lender’s analysis is subject to SBA’s review and determination of adequacy, when the Lender requests SBA to purchase its guaranty or when SBA is conducting lender oversight activities.
SOP 50 10 8.1 B.Ch5.A.4.b
b. Underwriting i. SBA has authorized Export Express Lenders to make the credit decision without prior SBA review. Lenders must not make an Export Express loan that would be available on reasonable commercial terms from either the Lender itself or another source without an SBA guaranty. ii. The credit analysis must demonstrate there is a reasonable assurance of repayment. iii. The credit analysis must include the factors demonstrating the Applicant does not have credit available elsewhere on reasonable commercial terms from non-Federal, non-State, non-local government sources, in accordance with Section A, Ch. 1, Para. H, Credit not available elsewhere; iv. The Lender must use appropriate, prudent, and generally accepted industry credit analysis processes and procedures (which may include credit scoring) and these procedures must be consistent with those used for the Lender’s similarly-sized non-SBA guaranteed commercial loans. v. In addition to using the Lender’s appropriate, prudent and generally accepted industry credit analysis and procedures, Export Express Lenders may use a business credit scoring model (such a model cannot rely solely on consumer credit scores) to assess character, reputation, and credit history of the applicant and/or repayment ability if they do so for their similarly-sized, non-SBA guaranteed commercial loans. a) The business credit scoring model may only be used in addition to the Lender’s appropriate, prudent, and generally accepted industry credit analysis and procedures. b) If used, the business credit scoring results must be documented in each loan file and available for SBA review. c) Lenders must validate (and document) with appropriate and accepted statistical methodologies that their business credit scoring model is predictive of loan performance and they must provide that documentation to SBA upon request. d) Although SBLCs do not make non-SBA guaranteed loans, SBA has determined they may use credit scoring. SBLCs are required to provide credit scoring model validation to SBA on an annual basis. vi. The credit decision on Export Express loans, including how much to factor in a past bankruptcy or whether to require an equity injection, is left to the business judgment of the Lender. Also, if the Lender requires an equity injection and, as part of its standard processes for similarly-sized, non-SBA guaranteed loans verifies the equity injection, it must do so for Export Express loans. While the credit decision is left to the business judgment of the Lender, early loan defaults will be reviewed by SBA pursuant to SOP 50 57. If the application involves a franchise (as defined by FTC), the Lender must review any credit information provided, such as the number of failed franchisees and cash flow projections provided by the franchisor). Lender must review any management agreement (unless the management agreement is part of the franchise disclosure documents for a brand listed on the Franchise Directory) to determine if it results in an ineligible passive company. vii. Export Express Non-Financial Default Provisions: Non-financial default provisions are allowed under Export Express under the following conditions: a) Non-financial default provisions are loan conditions that, if violated, would cause the loan to be in default even though the Borrower has made all payments as agreed. b) Non-financial default provisions must be substantive and must be agreed to by the Borrower in writing at loan closing; c) The provisions must be consistent with those used by the Lender on its similarly-sized non-SBA guaranteed commercial loans; d) A lender may not request purchase of the guaranty solely based on a violation of a non-financial default provision (see 13 CFR § 120.520); and e) A maturity date must be established in the note. For example, a line of credit could state that it is payable upon demand under certain conditions, but in no case later than a certain date.
SOP 50 10 8.1 B.Ch5.A.4.c
c. Collateral See Appendix 19: 7(a) Collateral Requirements Para. B.6 See Section A, Ch. 5, Para. A. for guaranty requirements.
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