Are you a small business owner or franchisee aiming to fund your venture with an SBA loan? Whether you’re launching a new franchise or expanding a local retail shop, the Credit Elsewhere Test is a critical hurdle to secure SBA financing. This test ensures you genuinely need the SBA’s low-rate, long-term loans because you can’t obtain affordable financing elsewhere. The updated SBA SOP 50 10 8, effective June 1, 2025, makes this test more rigorous, demanding robust documentation and stricter underwriting.