Business loan denied? What the lender must tell you, and what to do next
Edited by Moe Ameen · Published
If a lender turns down your business loan, federal rules say it has to tell you. Under Regulation B, a business with $1 million or less in revenue gets notice within 30 days of a completed application, plus the specific reasons or the right to ask for them within 60 days. You can also check your personal credit reports for free every week at AnnualCreditReport.com.
Key takeaways
- Regulation B covers business credit, not just personal loans.
- Businesses with $1 million or less in revenue get notice within 30 days and a right to specific reasons.
- "Didn't meet our internal standards" isn't a sufficient reason under the rule.
- You can pull your personal credit reports free every week and dispute errors at no cost.
Does a lender have to tell me why my business loan was denied?
Yes. Every business applicant gets notice. Smaller businesses get reasons or a notice of the right to them; larger ones get written reasons if they ask in writing.
Section 1002.9 sets out how lenders notify applicants, with separate rules for business credit [1]. The timing and form depend on your revenue; the table below sets out each case.
What counts as a real reason for a denial?
A specific one. The rule says citing internal standards or a low score on the lender's own scoring system isn't enough.
Regulation B states that saying the decision was based on internal standards or policies, or that the applicant fell short on the creditor's scoring system, is insufficient [1]. If you get a vague answer, ask in writing for the specific reasons.
How do I check my credit after a denial?
Pull all three personal reports free at AnnualCreditReport.com, which the CFPB says you can do once a week.
The CFPB says you can get a free report from Equifax, Experian and TransUnion once a week at AnnualCreditReport.com [3], and the FTC says weekly access is now permanent [4]. For personal credit applications, the CFPB says a denial notice must name the bureau used, and you can get a free report from it if you ask within 60 days [2].
How do I dispute an error on my credit report?
Contact both the credit bureau and the company that supplied the wrong information. The FTC says they have to fix it for free.
The CFPB says fixing an error generally means contacting both [5]. Send supporting documents. The FTC says the bureau has 30 days to investigate [6], and the CFPB says furnishers generally must respond within 30 days [5].
Where does my personal credit score fall?
FICO calls 670 to 739 good and 580 to 669 fair. Many lenders publish their own minimum, so compare yours with theirs.
| FICO Score | FICO's label |
|---|---|
| 800 and up | Exceptional |
| 740 to 799 | Very good |
| 670 to 739 | Good |
| 580 to 669 | Fair |
| Under 580 | Poor |
Our business loan requirements table shows what 13 lenders publish. If utilization is dragging your score, the credit utilization calculator shows where you stand.
Glisten check
What Regulation B requires, by applicant
| Applicant | When the lender must notify you | Reasons |
|---|---|---|
| Business with $1 million or less in revenue last year | Within 30 days of a completed application; can be oral or written | Specific reasons, or a notice of your right to them if you ask within 60 days |
| Business with more than $1 million in revenue | Within a reasonable time, oral or written | Written reasons if you ask in writing within 60 days |
| Trade credit or factoring, any size | Within a reasonable time, oral or written | Written reasons if you ask in writing within 60 days |
| Personal (consumer) credit | Within 30 days of a completed application | Specific reasons, or a notice of your right to them if you ask within 60 days |
For the smaller-business row, the lender can give the notice of your right to reasons when you apply instead of after the decision. Phone applications can be handled by an oral statement [1].
Is this right for you?
Best for
- Owners who were just turned down and want to know their rights.
- Anyone planning a second application.
Not ideal for
- Appealing a specific decision. Glisten can't contact lenders for you.
- Legal advice. For a dispute over a lender's conduct, the CFPB takes complaints.
Frequently asked questions
How long does a lender have to tell me my loan was denied?
For businesses with $1 million or less in revenue, 30 days after a completed application. Larger businesses get notice within a reasonable time [1].
Can I ask why my business loan was denied?
Yes. Ask within 60 days of the notice; for larger businesses, ask in writing [1].
Is it free to check my credit report?
Yes. AnnualCreditReport.com gives you a free report from each bureau once a week [3].
Do I have to pay to dispute a credit report error?
No. The FTC says the bureau and the business that supplied the information have to fix errors for free [6].
What's a good FICO Score?
FICO calls 670 to 739 good, and says most lenders consider that a good score [7].
How we know this
On October 28, 2026 we read the text of Regulation B, section 1002.9, from the eCFR, plus the CFPB's and FTC's pages on denials, free credit reports and disputes, and myFICO's score ranges. The table is our summary of the regulation; the regulation's own text governs.
- 12 CFR 1002.9: Notifications (Regulation B), eCFR. Checked October 28, 2026.
- My credit application was denied because of my credit report. What can I do?, CFPB. Checked October 28, 2026.
- How do I get a free copy of my credit reports?, CFPB. Checked October 28, 2026.
- You now have permanent access to free weekly credit reports, FTC. Checked October 28, 2026.
- How do I dispute an error on my credit report?, CFPB. Checked October 28, 2026.
- Disputing errors on your credit reports, FTC. Checked October 28, 2026.
- Credit scores, myFICO. Checked October 28, 2026.