SystemSmall Business & SBA Lending

Small Business Loan Decisioning

Small business loan decisioning: every file read, spread and tested, and a credit officer who decides in minutes

A decision-ready file for loans up to $350,000 in under a day.

See one case, screen by screen ↓
demo1:52minfor six agents to read and test a 38-document file — spread, statements, checks, memo and letter
demo2,914transactionsin twelve months of bank statements, each classified and grouped by payee and rhythm
demo0.40xdebt service coverage once an undisclosed cash advance is counted — the application showed 1.58x
target<1dayfrom a complete file to a decision-ready file, for loans up to $350,000
In short

What is Small Business Loan Decisioning?

Software that takes a complete small business loan file to a decision: it reads the documents, spreads the returns, analyses the bank statements, runs the eligibility and credit checks, and recommends. Small Business Loan Decisioning does that with six agents and places every file on a decision board as Ready to decide, Needs a look or Decline likely, with a drafted memo and letter. A credit officer decides and signs.

How to choose AI solutions for lending →

Updated

The problem

Why a $240,000 loan waits as long as a $2.4 million one

A small business loan file is not small. A $240,000 SBA 7(a) Small request from a 16-person contractor carries 38 documents: the application and Form 1919 for the business and each owner, personal financial statements, three years of business returns with IRS transcripts, twelve months of bank statements, the interim statements, the debt schedule, contracts and quotes. Someone has to spread the returns, key the debt schedule, read every statement, run CAIVRS, SAM.gov and OFAC, test debt service coverage, write the credit memo and draft the letter.

Most of those days go on assembly, not judgement — and the file waits for an analyst slot before any of it starts. So small requests get slow-walked or declined. And what a busy reader misses is exactly what hurts: a merchant cash advance shows up only as an identical debit every business day, never on the application or the debt schedule, and it can turn 1.58x coverage into 0.40x.

typical30–45daysfrom intake to a decision on a commercial credit at a typical community bank
typical$3–4Kto make, set up and monitor a business loan of $100,000 or less
typical30%fewer SBA 7(a) loans in the first nine months of FY2026, while the average loan grew
Where a small loan file’s days goestimated
By hand30 days
With the solution1 days
  • Waiting for an analyst12 → 0 d
  • Spreading returns and the debt schedule4 → 0.1 d
  • Reading twelve months of bank statements5 → 0.1 d
  • SBA eligibility and credit checks4 → 0.1 d
  • Writing the credit memo and letter4 → 0.2 d
  • The credit officer’s review and decision1 → 0.5 d

Estimated split for a typical small business file at a community bank, by hand and with the solution, in business days.

How it works

How a small loan file moves

Six specialist agents read, spread and test every file; the bank statements are drawn day by day so hidden daily debts show; the credit officer decides and signs.

What comes in
Complete file in38 documents · application, SBA forms, returns, statements
Agents at work
File readersort and read
Then
Cash-flow spreader
Bank statement analysthidden daily debits
Eligibility checker
Then
Credit and policy testercoverage + lane
Then
Memo and letter writermemo + letter
A person decides
Credit officerdecides and signs
What comes out
Signed decision
Credit memo
Letter with reasons
One case, step by step

One small loan file, from complete to signed

Halverson Mechanical, a 16-person heating and air conditioning contractor in Dayton, asks Ashgrove Community Bank for $240,000 under SBA 7(a) Small: two upfitted cargo vans and working capital. Here is what happens, screen by screen, in the working solution.

  1. 01Fri 9 Oct, 16:40

    The last document lands, and the file is read

    Jordan Pike · Business banker

    Jordan uploads the last of 38 documents and the file is complete. It is read the moment it lands and goes onto the decision board in the lane its evidence puts it in: Needs a look, at 1.58x as the application shows it and 0.40x with every debt counted. The two reasons are on the card: a cash advance not disclosed, and working capital at 60% with an $8,740 judgment open.

    Every complete file is read and tested as it arrives, then placed in the lane its evidence puts it in — with the reasons on the card.

  2. 021 min 52 s

    Six agents, 38 documents, one run

    The agents

    The file reader sorts and reads the application, the Forms 1919 and 413, three years of returns, the transcripts and twelve statements. The cash-flow spreader puts 2025 operating cash flow at $151,300 against $57,120 of existing debt service. The bank statement analyst classifies 2,914 transactions, the eligibility checker runs nine SBA checks, the credit and policy tester places the file, and the memo and letter writer drafts the recommendation.

    Finished in 1 min 52 s · 6 agents · 38 documents

  3. 03Monday morning

    Twelve months of the borrower’s bank account, drawn

    Renee Okafor · Business banking credit officer

    Renee opens the file on its statement timeline: operating account ••4471, October 2025 to September 2026, as a daily balance line with one row of ticks for each recurring payee beneath it. Payroll every other Friday, rent on the 1st, the van loans on the 5th, the equipment loan on the 15th — and a solid red row that starts in May.

    “Undisclosed MCA — $1,140 daily debit since May”

  4. 04July, day by day

    The balance saw-tooths, and the debit bounces twice

    Renee Okafor · Business banking credit officer

    Zoomed to July, each tooth is one business day: up with the deposits, down with the debits, $1,140 of it to Swiftline Capital every day. Twice the debit came back unpaid for insufficient funds, on 16 and 30 July. The lowest balance in the year, $374, was Thursday 30 July — the day before payroll.

  5. 05One click

    Every finding opens the statement page it came from

    Renee Okafor · Business banking credit officer

    Renee clicks the band and the May statement opens at page 1: “SWFTLN CAP FUNDING · ADV 26-05112”, a $100,000 credit on 1 May, then “SWFTLN CAP ACH DEBIT” for $1,140 on the next business day and every one after it. The $100,000 is the advance, not revenue. The finding is proved on the page, not asserted.

  6. 06Next

    Every debit grouped by payee and rhythm

    Bank statement analyst

    Seven recurring patterns, one not on the debt schedule. The two Riverbend Auto Credit van loans, the Ashgrove equipment loan and the line of credit match what the borrower signed. Swiftline Capital does not: 104 paid, 2 returned, $118,560 in twelve months. And Tri-County Sheet Metal Supply was paid $2,185 a month until 8 May, then stopped — and became an $8,740 judgment.

    Limit: never counts a transfer, a loan or an advance as revenue.

  7. 07What if

    Coverage with every debt counted

    Cash-flow spreader

    The spread runs three years of Form 1120-S, each line tied to the return page: revenue $1,912,400 and operating cash flow $151,300 in 2025. Counted at $1,140 × 252 business days, the advance adds $287,280 a year and coverage falls to 0.40x, below the SBA 1.10x floor and the bank’s 1.25x policy. Paid off before closing from the business’s own cash, it is 1.58x again.

    SBA proceeds may not refinance a cash advance.

  8. 08Tested

    19 checks, each with its source

    Eligibility checker · Credit and policy tester

    Sixteen passed and three found something, each with a cure. Size standard with no affiliates, both owners US citizens, CAIVRS, SAM.gov and OFAC clear; owners’ credit 724 and 701, Ashgrove business score 668 against an approval range of 640 and above; IRS transcripts match the 2023–2025 returns to the dollar. No hit for a person to clear.

  9. 09Drafted

    The credit memo, in the SBA small-loan shape

    Memo and letter writer

    The business and its owners, the request and why credit is not available elsewhere, credit history, repayment ability, collateral and insurance, liens and judgments — each figure cited. One section waits for Renee: working capital at 60% of the loan. Asked why, the assistant ties it to $598,800 of signed contracts and a 71-day cash cycle, and she confirms the explanation in the memo.

  10. 10Mon 12 Oct, 09:24

    Approve $240,000 with 3 conditions — signed

    Renee Okafor · Business banking credit officer

    The recommendation is within her $250,000 authority, so no second signature is needed. The conditions: the Swiftline advance paid off from the business’s own funds with a zero-balance letter, the $8,740 judgment satisfied, and the vans insured and titled to the bank. Renee signs, and the conditional approval letter goes to Jordan Pike and Erik Halverson.

    Decision-ready Fri 9 Oct 16:42 — 2 minutes after the file was complete.

Who it’s for

Built for everyone who touches a small loan file.

The same file, seen by the four people who carry it — what their week looked like, and what it looks like now.

RO
Renee OkaforBusiness banking credit officer · decides to $250,000
Credit officer
Before
The decision takes ten minutes; getting a file to where she can decide it takes two weeks.
Now
Opens a file already read and tested, sees the borrower’s money day by day, and decides from the panel beside it.
MF
Martin FeldChief credit officer · co-signs to $350,000 and on exceptions
Second signature
Before
Gets the whole file when all he needs is the exception and the cure.
Now
Sees each finding with its source page and the cure the agents can name, and co-signs only where policy asks him to.
JP
Jordan PikeBusiness banker · 31 open requests
Business banker
Before
His customer asked in July, and he still cannot tell him yes or no.
Now
Sees every file in its lane with its reasons, and has the signed conditional approval the next working morning.
PW
Paul WhitlockHead of Small Business Banking
Manager
Before
Stopped quoting under $150,000 because every one lost money.
Now
Watches median time from complete file to decision fall from 19 business days to hours, and small loans approved each month climb.
Built on the engine

6 agents. Each with one job, and hard limits.

Six specialist agents read, spread and test every file; the bank statements are drawn day by day so hidden daily debts show; the credit officer decides and signs.

File reader

Sorts and reads every document in a small business file — the application, SBA Form 1919, Form 413, returns, transcripts, statements, contracts — and says when the file is complete.

  • Never fills in an answer the borrower left blank — lists it as missing
  • Cites the page for every field
Cash-flow spreader

Spreads business and personal returns, computes operating cash flow and debt service, and builds the debt schedule — including debts the bank statement analyst finds.

  • Add-backs only by rule, with the return line cited
Bank statement analyst

Classifies every deposit and debit, ties deposits to revenue, and finds recurring debts by payee and rhythm — cash advances, undisclosed loans, leases — and returned items; draws them on the statement timeline.

  • Never counts a transfer, a loan or an advance as revenue
  • Flags any debt not on the borrower’s schedule with its amount, frequency and first date
Eligibility checker

Runs the SBA eligibility checks: size with affiliates, ineligible types, citizenship, CAIVRS, SAM.gov, OFAC, use of proceeds and credit elsewhere.

  • Never clears a hit — a person clears it
Credit and policy tester

Tests owners’ and business credit, judgments and liens, transcripts and coverage against the SBA floor and bank policy, and places the file in its lane with no more than two reasons on the card.

  • Never uses or infers a protected characteristic
  • Recommends a lane, never declines
Memo and letter writer

Drafts the recommendation, the credit memo in the SBA small-loan shape, the conditions that cure each finding, and the approval, counter-offer or decline letter with principal reasons.

  • Never sends a letter or decides
  • Every reason tied to a finding
Credit officer

Decides and signs; chief credit officer co-signs above $250,000. The agents propose; a named person decides.

Ask in plain words

Ask about any file, in plain words

Ask about any file, finding or check — or test what happens if something changes. Every answer points to the page it came from.

What is the cash advance and what does it do to coverage?

Swiftline Capital funded $100,000 on 1 May and has taken $1,140 every business day since — 104 debits to 30 Sep, $118,560 of $139,080, with two returned for insufficient funds in July. It is not on the debt schedule or the application. Counted, debt service is $382,860 and coverage 0.40x; paid off before closing, $95,580 and 1.58x. SBA proceeds may not refinance it.

Why is working capital 60% of this loan?

Because the two signed jobs need materials before they pay. Westbrook City Schools’ HVAC replacement is $412,600, starts 2 November and pays net 45; with the Fairmont Family Medicine build-out the backlog is $598,800. About $209,600 is bought up front, receivables average 52 days and inventory 19 — a 71-day cash cycle. It is in the memo for you to confirm.

Which eligibility checks did Halverson pass?

All nine SBA eligibility checks are clear: an Ohio operating business since 2014; NAICS 238220 against a $19.0M size standard, no affiliates; not an ineligible type; both owners US citizens; CAIVRS, SAM.gov and OFAC clear for the business and both owners; nothing in the proceeds refinances the advance.

What if the advance is not paid off before closing?

Then no loan amount works: at the full $240,000 coverage is 0.40x, and even $96,000 for the vans alone is 0.42x — both under the 1.10x SBA floor. So the condition is a payoff with a zero-balance letter and no new advance before closing.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

The statement timelineTwelve months of the operating account as a daily balance line, every recurring payee beneath it, the undisclosed cash advance in red — and the decision panel beside it.
The decision boardEvery complete file in its lane — New files, Ready to decide, Needs a look, Decline likely — with coverage, score, eligibility and the reasons on the card.
The file, read and testedSix agents’ run step by step, the coverage, lane and checks passed, and three findings each with its evidence and cure.
July, day by dayEach tooth one business day: deposits up, debits down, $1,140 of it to the cash advance, and two returned items.
The statement pageAny day or finding opens the statement page it came from, with the advance funding and the daily debits highlighted.
Recurring debitsEvery debit grouped by payee and rhythm, read against the debt schedule the borrower signed, with what the statements say beside it.
Cash flow and coverageThree years of returns spread line by line, the debt schedule, coverage against the SBA floor and bank policy, and a what-if.
Eligibility and credit checksNineteen checks across eligibility, credit history and repayment ability, each with its result and source.
The credit memoDrafted in the SBA 7(a) Small shape, each figure cited, with every section’s status and the activity beside it.
Signing the decisionThe credit officer signs with the meaning of the signature, her name and the time recorded together.
The decision and the letterThe recommendation and its reasons, the three options, authority and notice date, and the conditional approval letter.
ResultsTime from complete file to decision by month, small loans approved, and how often officers agreed with the lane.
Your lending rulesLanes, coverage, score range, cash advances, hidden recurring debits, approval authority and the notice of action — all settings.
Governance

Built for credit decisions you can defend: cited, signed, on the record.

Every finding opens its pageEach check, finding and figure in the memo links to the document and page it came from — the statement line, the return line, the court docket — so the evidence is one click away.
A credit officer decides and signsThe agents read, test and recommend. The credit officer signs with the meaning recorded: she has reviewed the memo, the cash flow and every check, and makes the credit decision — with her name and the time.
A second signature where policy asksAbove the credit officer’s $250,000 authority, to $350,000, or on any policy exception, the chief credit officer co-signs.
A person clears every eligibility hitCAIVRS, SAM.gov and OFAC hits go to the SBA lending manager. No agent can clear one.
Reasons from findings, on timeEvery reason on a decline or counter-offer is tied to a finding, and no protected characteristic is used or inferred. The notice of action is tracked against 30 days from a complete file (Regulation B), with a warning at day 20.
Every step on the audit trailEach agent step and each person’s action is recorded with who and when, and every change to the lending rules is versioned.
Configuration

Your credit policy, not ours

The rules every small business file is read and tested against are settings. Changes are versioned and on the audit trail.

SettingDefaultChoose from
Bank policy coverage — below this a file cannot be ready to decide1.25xStep up or down
Decline likelyUnder 1.10x with no cureUnder 1.00x · 1.10x · 1.15x with no cure
Business score approval range640 and above620 · 640 · 660 and above
Merchant cash advancesCounted as debt at the daily debit × 252 business daysOn · off
Hidden recurring debits — flag a payee not on the debt schedule debited on8 or more business days a month5 · 8 · 12 or more business days
Bank statements read12 months6 · 12 · 24 months
Credit officer decides alone up to$250,000$150,000 · $250,000 · $350,000
Notice of actionWithin 30 days · warn at day 20Warn at day 10 · 20
Connections

Works with the documents and checks you already use

Application and SBA formsthe application, Form 1919 and Form 413
Tax returns and IRS transcriptsbusiness and personal returns, matched to the transcripts
Business bank statements6, 12 or 24 months, every transaction read
Credit bureaus and court recordsowners’ credit, the business credit report, judgments and liens
CAIVRS, SAM.gov and OFACfederal debt, exclusion and sanctions checks
Your credit policywith SBA SOP 50 10 8.1, the lane rules and your letter templates
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
<1day
from a complete file to a decision-ready file
Today30–45 days
With agents< 1 day
typical
1.10x
SBA coverage floor, tested with every debt the statements show
19 of 19 checks
on every file
typical
$3–4K
to make a business loan of $100,000 or less today
TodayWith agents

“demo” = seen in the working solution, on its sample bank data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (a KreditIQ release on joining IBANYS, Sep 2026 — 30–45 days from intake to decision at a typical community bank; ProSight Financial Association — $3,000–$4,000 to make a business loan of $100,000 or less; Coleman Report, 13 Jul 2026 — SBA 7(a) loan count down 30% in the first nine months of FY2026). SBA rules: SBA Procedural Notice 5000-876777 and SOP 50 10 8.1. People, banks and businesses named on this page are fictional — characters and sample data in the working solution.

Questions

What business banking teams ask us.

What is small business loan decisioning software?

Software that takes a complete small business loan file to a decision: it reads the documents, spreads the returns, analyses the bank statements, runs the eligibility and credit checks, and recommends. Small Business Loan Decisioning does that with six agents and places every file on a decision board as Ready to decide, Needs a look or Decline likely, with a drafted memo and letter. A credit officer decides and signs.

How does it find a merchant cash advance the borrower did not disclose?

The bank statement analyst groups every debit by payee and rhythm and checks each pattern against the debt schedule the borrower signed. A payee debited on 8 or more business days in a month that is not on the schedule is flagged and drawn on the statement timeline. The advance is then counted as debt at its daily debit × 252 business days.

How does it handle SBA 7(a) Small loans?

It tests debt service coverage against the 1.10x SBA floor as well as your own policy, reads the bank statements to confirm every business debt, explains working capital when it is 50% or more of a loan over $50,000, and covers liens, judgments and credit elsewhere in the memo. Eligibility — size with affiliates, citizenship, CAIVRS, SAM.gov, OFAC and use of proceeds — is checked and cited on every file.

Does it decline loans on its own?

No. The credit and policy tester recommends a lane and never declines. The memo and letter writer drafts the letter but never sends it or decides. A credit officer decides and signs, and every reason on a decline or counter-offer is tied to a finding.

Which loans does it cover?

Small business requests up to $350,000: SBA 7(a) Small and SBA Express, conventional term loans and lines of credit. The credit officer decides alone up to their authority; above it, to $350,000, or on any policy exception, the chief credit officer co-signs.

Can we set our own coverage, score and approval limits?

Yes. Bank policy coverage, the decline-likely threshold, the business score range, how cash advances are counted, what makes a hidden recurring debit, how many months of statements are read, approval authority, the second signer and the notice-of-action warning are all settings, versioned and on the audit trail.

Do our credit officers stay in control?

Yes. The agents read, test and recommend; a named credit officer makes every decision and signs it. A person clears every eligibility hit, and every finding opens the page it came from, so the officer can check the evidence before signing.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements — your credit policy, lane rules, letter templates and a sample of complete files — and it goes live once every quality gate has passed. We will walk you through it on your own files first.

See it on
your small loan files.

We’ll run Small Business Loan Decisioning on a sample of your own complete files.