# Do you need a bank denial letter to get an SBA loan?

**Short answer:** Not under SBA's text. The lender certifies that credit is unavailable and explains why in its credit memo. SOP 50 10 8.1, Sec. A, Ch. 1, Para. H does not mention a denial letter.

Canonical page: https://www.sbaexpress.loans/answers/do-you-need-a-bank-denial-letter-for-an-sba-loan/
Last checked: 2026-11-08

SBA's rules do not ask you for one. The lender makes the certification. Under 13 CFR § 120.101, submitting an application is the lender's certification that it examined credit availability and has support in its file.

## What the SOP requires

The lender must explain in its credit memo why credit is not available elsewhere. That is SOP 50 10 8.1, Sec. A, Ch. 1, Para. H. It must give the specific reasons the applicant does not meet conventional policy, with supporting documents. We searched the SOP for denial letter and turn-down letter and found neither.

## What a lender may ask for

Lenders set their own file requirements, and those vary by lender. A lender may still ask for a letter as part of its own process. Expect questions about:

- Cash held by the business and its owners of 20% or more.
- Your current lenders and the terms you were offered.
- Why your request does not fit conventional terms, such as a longer maturity or limited collateral.

## The test includes the lender's own products

The determination covers conventional lenders and the SBA lender itself. If a lender would make the loan without the guaranty, the project is not eligible.

If the lender fails to address need adequately, SBA may decline a non-delegated application or deny liability on the guaranty of a delegated loan.

## Sources

- [13 CFR § 120.101](https://www.ecfr.gov/current/title-13/section-120.101)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. H (pp. 37-38)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)