Key Takeaways
- Your SBSS score is your business’s credit score that accounts for several factors, spanning both business and personal finances
- SBSS scores range from 0-300, with “good” SBSS scores starting around 165
- Your SBSS score is used in determining if you could qualify for a small business loan
What Is An SBSS Score?
SBSS stands for Small Business Scoring Service. This is a credit scoring service developed by FICO specifically for evaluating business credit. Unlike personal FICO scores, an SBSS score takes into account multiple factors, including business age, revenue, and the personal credit of all business owners.
SBSS scores range from 0-300 and are used by lenders to evaluate the financial standing and trustworthiness of small business loan applicants.
SBSS scores range from 0-300 and are used by lenders to evaluate the financial standing and trustworthiness of small business loan applicants.
Why Does Your SBSS Score Matter?
When you’re interested in receiving small business funding, your SBSS score can impact whether or not you qualify and how much financing you’re eligible to receive.
That’s why it’s so important to manage your personal and business finances responsibly and monitor your credit regularly, ultimately ensuring that you’re prepared when it comes time to apply.
That’s why it’s so important to manage your personal and business finances responsibly and monitor your credit regularly, ultimately ensuring that you’re prepared when it comes time to apply.
How Is An SBSS Score Calculated?
Unfortunately, you cannot calculate your own SBSS score. This score is calculated by FICO when you’re applying for business loans.
Here’s how it works:
Let’s say you’re a small business owner looking to apply for funding. When you submit a loan application with your business’s financial data and information about the owners, the lender or loan facilitator performs a credit pull. When you apply through NEWITY, we perform a soft credit pull, which does not affect your credit score. This credit pull gathers your personal credit data as well as your business’s credit data from business credit bureaus.
Your SBSS score is then generated. This is done by combining the following pieces of information:
Here’s how it works:
Let’s say you’re a small business owner looking to apply for funding. When you submit a loan application with your business’s financial data and information about the owners, the lender or loan facilitator performs a credit pull. When you apply through NEWITY, we perform a soft credit pull, which does not affect your credit score. This credit pull gathers your personal credit data as well as your business’s credit data from business credit bureaus.
Your SBSS score is then generated. This is done by combining the following pieces of information:
- Personal credit history of all owners
- Business credit history
- Time in business
- Annual revenue
- Cash flow and bank balances
- Public records (e.g., liens, bankruptcies)
- Industry risk profile (NAICS code)
- Trade Lines
- Payment History
How Your SBSS Score Can Vary
Just like personal FICO scores have different versions, your business might have multiple SBSS scores, depending on how a lender chooses to configure the scoring model.
Lenders can customize how the SBSS model weighs different types of data. For example, one lender might prioritize your business credit profile, while another might place more emphasis on your personal credit history or financials. This flexibility allows lenders to tailor the score to their specific risk tolerance and lending criteria.
The model is also designed to be adaptive. If a lender prefers to pull business credit data from Experian but there isn’t enough information available, the system can automatically check Dun & Bradstreet or Equifax instead. If business credit data is still too limited, the score may be calculated using personal credit data alone, possibly supplemented by financial information from your application.
Because of this dynamic setup, your SBSS score can vary from lender to lender—and it can change over time as your credit reports and financials are updated. That’s why it’s important to maintain strong credit habits across both your personal and business profiles.
All loans facilitated by NEWITY use the SBA’s model for calculating SBSS scores.
Lenders can customize how the SBSS model weighs different types of data. For example, one lender might prioritize your business credit profile, while another might place more emphasis on your personal credit history or financials. This flexibility allows lenders to tailor the score to their specific risk tolerance and lending criteria.
The model is also designed to be adaptive. If a lender prefers to pull business credit data from Experian but there isn’t enough information available, the system can automatically check Dun & Bradstreet or Equifax instead. If business credit data is still too limited, the score may be calculated using personal credit data alone, possibly supplemented by financial information from your application.
Because of this dynamic setup, your SBSS score can vary from lender to lender—and it can change over time as your credit reports and financials are updated. That’s why it’s important to maintain strong credit habits across both your personal and business profiles.
All loans facilitated by NEWITY use the SBA’s model for calculating SBSS scores.
What Is Considered A Good SBSS Score?
At NEWITY, SBA 7(a) loan applicants must have an SBSS score of 170 or higher to qualify for funding.
If you’re using your business’s SBSS score to set benchmarks for your financial growth, here is a chart to help you understand the context of your score:
If you’re using your business’s SBSS score to set benchmarks for your financial growth, here is a chart to help you understand the context of your score:
Score | Assessment Tier |
|---|---|
0-140 | Low |
141-164 | Moderate |
165-229 | Good |
230-300 | Excellent |
How Can You Improve Your SBSS Score?
Because your SBSS score takes into account a number of financial factors, combined with the fact that the SBSS formula differs from lender to lender, it’s crucial that you focus on upholding good financial standing in all the areas that your SBSS score pulls data from.
Here are some tips for improving these areas of your business and personal finances:
Here are some tips for improving these areas of your business and personal finances:
Business Finances
- Get a DUNS number
- Open a business credit card
- Keep credit utilization low
- Limit hard inquiries
A DUNS number is a unique identifier for your business, issued by Dun & Bradstreet, one of the major business credit bureaus. It’s essential for establishing a business credit profile. Without it, your company may not appear in business credit databases, which means lenders can’t evaluate your payment history or financial behavior.
Getting a DUNS Number is free and relatively quick. Once you have it, you can begin building credit by working with vendors and suppliers who report payment activity to D&B. This is a foundational step in improving your SBSS score, especially if your business is new or has limited credit history.
Opening a business credit card is one of the fastest ways to start building business credit. It allows you to separate personal and business expenses, which is important for both financial management and credit reporting.
When used responsibly, a business credit card helps establish a positive payment history and shows lenders that your business can manage revolving credit. Make sure the card issuer reports to business credit bureaus like D&B, Experian Business, or Equifax Commercial, as not all do.
Credit utilization refers to how much of your available credit you’re using. For example, if your business credit card has a $10,000 limit and you’re carrying a $7,000 balance, your utilization is 70%, which is considered high.
High utilization can negatively impact both personal and business credit scores. Aim to keep your utilization below 30%, and ideally closer to 10%, to show lenders that your business isn’t overly reliant on borrowed funds. This is a key factor in both personal FICO scores and business credit evaluations used in SBSS scoring.
Every time you apply for credit, a lender may perform a hard inquiry on your credit report. Too many hard inquiries in a short period can signal risk to lenders and may lower your personal credit score.
Since personal credit is a major component of the SBSS score, limiting unnecessary hard inquiries helps protect your score. Instead, look for lenders or facilitators (like NEWITY) that use soft credit pulls during prequalification, which don’t affect your credit.
Personal Finances
- Understand how your FICO score is calculated
- Payment History (35%) – Whether you’ve paid past credit accounts on time.
- Credit Utilization (30%) – How much of your available credit you’re using.
- Length of Credit History (15%) – How long your credit accounts have been active.
- New Credit (10%) – How many recent credit inquiries or new accounts you’ve opened.
- Credit Mix (10%) – The variety of credit types you have (credit cards, loans, etc.).
- Ensure your business partners are on the same page
Since your personal credit score plays a major role in your SBSS score—especially if your business is new or lacks credit history—it’s important to understand how that score is built.
The FICO score is made up of five key components:
If your business has multiple owners, their personal credit will likely be factored into the SBSS score.
It’s critical to have open conversations with your partners about credit. One partner’s poor credit history could impact your ability to qualify for a loan or secure favorable terms. Before applying, review each owner’s credit reports, address any issues, and make a plan to strengthen weak areas together.
Securing Funding
Your SBSS score is a key factor in securing small business funding, especially through programs like the SBA 7(a) loan. While you can’t calculate it yourself, understanding what influences the score empowers you to take proactive steps toward improvement.
If you’re interested in discovering how much you could qualify for in an SBA 7(a) loan, you can apply today and find out in just 10 minutes!
If you’re interested in discovering how much you could qualify for in an SBA 7(a) loan, you can apply today and find out in just 10 minutes!
Find out how much you could qualify for
