Word-for-Word Answers to the 25 Toughest Questions SBA 7(a) Credit Officers Ask Before Issuing a Commitment Letter
| Credit Committee Question | What the Bank Is Actually Testing | Winning CFO-Grade Response Structure | Supporting Document to Hand Over |
|---|---|---|---|
| 1. 'Why do you need an SBA guarantee instead of conventional debt?' | Credit enhancement necessity (SBA Credit Elsewhere Test) | Longer 10-year amortization preserves Year-1 working capital cushion | 5-Year Cash Flow & DSCR Amortization Schedule |
| 2. 'What happens if ramp-up takes 6 months longer than projected?' | Liquidity burn rate & personal reserve runway | Show 4 months of fixed OPEX escrowed in working capital line | Sensitivity Table + Post-Close Liquidity Statement |
| 3. 'How did you validate your customer acquisition cost (CAC)?' | Unit economics realism vs. industry NAICS benchmark | Cite local competitor pricing, LOIs, and conservative 2.8x LTV:CAC | Local Market Comp Sheet + Signed Vendor Quotes |
| 4. 'How is your equity injection sourced and seasoned?' | No borrowed down-payment rule (SBA SOP compliance) | 2 months of personal bank statements showing unencumbered cash | 60-Day Bank Statements + Source-of-Funds Affidavit |