Official Source
5000-875701
On This Page
Overview#
On January 16, 2026, the SBA issued Procedural Notice 5000-875701 announcing the discontinuation of the FICO Small Business Scoring Service (SBSS) Score for 7(a) Small Loans.
Key Changes#
End of SBSS Requirement#
Effective March 1, 2026:
- 7(a) Small loan applications will no longer receive an SBSS Score
- SBA will no longer screen 7(a) Small loan applications using the SBSS Score
- The mandatory scoring threshold is eliminated
New Underwriting Requirements#
For federally regulated lenders, the notice requires:
- Commercial credit analysis processes and procedures consistent with similarly sized non-SBA guaranteed commercial loans
- Lenders must apply their standard commercial underwriting practices
SBSS Still Available#
Important clarification: SBSS is no longer required, but it is not going away. The SBA's decision removes an underwriting rule, not the relevance of SBSS itself:
- Lenders are still free to use SBSS in their underwriting
- Many lenders are expected to continue using SBSS voluntarily
- The score remains a valid credit assessment tool
What This Means for Borrowers#
Potential Benefits#
- Borrowers who previously struggled with SBSS thresholds may find more flexibility
- Individual lender relationships may carry more weight
- Alternative creditworthiness factors may be considered
Potential Challenges#
- Underwriting criteria may vary more between lenders
- Some lenders may apply stricter standards than the previous SBSS threshold
- Processing times could vary as lenders adapt their procedures
Effective Date#
This notice is effective March 1, 2026 for all 7(a) Small Loan applications.
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VerSquare Editorial Team
The VerSquare editorial team provides insights, guides, and analysis for business buyers, sellers, and advisors navigating M&A transactions.
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