What Is The Minimum Credit Score For EIDL Loans (Underwriting Criteria For EIDL Loans)

If you run a small business, then you will probably be familiar with the SBA and the wealth of loans that this Government agency offers. The SBA was set up in the 1950s to support small businesses through tricky financial periods, and they continue to do this today. This is a good thing because there have been multiple sticky financial periods since the 1950s in which small businesses have required support. 

But SBA loans are not exclusive to companies that are being hit by national or global financial difficulty, they are also there to support companies who are simply struggling.

One of the most common emergency loans that the SBA offers to support small businesses is the EIDL loan. But what is the EIDL loan? And more importantly, what is the underwriting criteria for it? In this guide, we’ll be taking a look at what the minimum credit score requirement for an EIDL loan is, and lots more.

What Is An EIDL Loan?

First things first, let’s take a look at what an EIDL loan is. ‘EIDL’ stands for ‘Emergency Injury Disaster Loan’, and this type of loan is obtainable because it is guaranteed by the SBA.

The SBA is the Small Business Administration, and they are a Federal Government agency that was set up to support small businesses, and ensure they continue to thrive in difficult times. Some SBA loans exist solely to help businesses grow, but others exist to ensure that small businesses survive, the EIDL loan is one of these.

The EIDL loan scheme was set up to help small businesses, small agricultural cooperatives, and not-for-profit organizations. Specifically, it was designed to help these types of businesses if they exist in a declared disaster area, and have suffered economic injury because of this.

So, for example, if your business was impacted by a natural disaster in your local area, you will be eligible for an EIDL loan. While these loans are guaranteed by the SBA, they are not offered by them, instead they are offered by banks and lenders, so you will have to apply for one of these loans via these agencies.

What Is The Minimum Credit Score For EIDL Loans?

If you are considering applying for any loan, then you will know that something that hugely influences the chances of you being accepted is your credit score.

When it comes to business loans, you not only need to consider your own personal credit score, but also the business’s credit rating too. So, if you have been affected by a disaster, you might be wondering what your credit score needs to be in order for you to be eligible for an EIDL loan. Let’s take a look.

You might expect the credit score criteria for EIDL loans to be flexible, especially as this is a loan that is offered to companies which are struggling. But this isn’t the case.

Unfortunately, credit score is one of the biggest influences on whether, or not, you will be accepted for an EIDL loan, and it isn’t something that exceptions are made for. So, the minimum credit score required for an EIDL loan is 570, but ideally, your credit rating should be higher than this if you want your application to be successful.

How Long Does It Take To Get Approved For EIDL Loan?

As EIDL loans are essentially emergency loans, a lot of people expect them to be available instantly once you have applied. But this isn’t the case. There is a lot of work that goes on behind the scenes to decide whether, or not, you will be accepted for one of these loans. This means that it will take time for you to hear if your application has been accepted or rejected.

Typically speaking, it can take up to 21 days for your EIDL loan application to be approved. Once approved, it can then take up to 5 days more for the money to actually enter your account.

But it is important to remember that, while it can take up to 21 days for your application to be accepted, a lot of the time you will hear about the results of your application earlier than this. It will depend on how busy the SBA and lenders are at the time of your application.

When you apply for an EIDL loan via a lender or bank, your application will be processed by them. It will then be passed onto the SBA for it to be confirmed whether, or not, you are eligible. This information will then be passed back to your lender, and then onto you. This is why it can take up to 21 days for you to hear about your loan application.

Why Would EIDL Be Declined?

When you accept your loan application, you might automatically expect that you will be accepted. Especially if you believe that you fitted the eligibility criteria perfectly. This can make it quite a shock if you find out that you were declined. So let’s take a look at some reasons why your application could have been rejected.

Other than your credit score being below 570, there are also some other factors that could cause your EIDL application to be declined. These include:

  • Your business being set up after 31st January 2020.
  • Business owners not being US citizens or permanent residents.
  • Your business being in an open bankruptcy.
  • You, personally, being arrested for a felony or misdemeanor in the past 5 years.
  • You, personally, having delinquent child support exceeding 60 days.

When you apply for any business loan with the SBA, they not only look at your business, but you too. So, even if you think that you are the perfect candidate for the EIDL loan scheme, there are a number of factors that could affect your eligibility. Credit scores aside.


In short, the minimum credit score for an EIDL loan is 570, and this is something that is non-negotiable. We have looked at the credit score required for EIDL loans, and lots of information regarding this type of loan in this guide. So to find out more, check it out.

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