# What does credit not available elsewhere mean for an SBA loan?

**Short answer:** It means the desired credit must not be available on reasonable terms from non-federal, non-state and non-local government sources. The lender certifies this and keeps support in its file (13 CFR § 120.101; SOP 50 10 8.1, Sec. A, Ch. 1, Para. H).

Canonical page: https://www.sbaexpress.loans/answers/what-does-credit-not-available-elsewhere-mean/
Last checked: 2026-11-08

It means you cannot get the money on reasonable terms without SBA's help. 13 CFR § 120.101 limits SBA assistance to applicants who meet that test. SOP 50 10 8.1, Sec. A, Ch. 1, Para. H tells lenders how to show it.

## What the lender must address

The lender must determine that some or all of the loan is not available from:

- The liquidity of the applicant and of owners of 20% or more, including their spouses and minor children.
- Conventional lenders and other non-government sources, including the lender itself.

## Acceptable reasons

The credit memo must state a specific weakness. Examples in Para. H:

- You need a longer term than the lender's policy allows.
- The loan exceeds the lender's limit for one customer.
- The collateral does not meet policy.
- The lender's policy does not allow your industry or new businesses, such as one open no more than 2 years.

## Reasons that fall short

A lender cannot cite its conventional credit score policy as the sole reason. It cannot rely solely on secondary market liquidity or its legal lending limit. It cannot rely at all on Community Reinvestment Act ratings or a better lien position.

If your loan meets the lender's conventional standards, the project is not eligible for an SBA 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)