Factors to Consider for a Self-Employed Borrower

Any individual who has a 25% or greater ownership interest in a business is considered to be self-employed.

The following factors must be analyzed before approving a loan for a self-employed borrower:

  • the stability of the borrower’s income,

  • the location and nature of the borrower’s business,

  • the demand for the product or service offered by the business,

  • the financial strength of the business, and

  • the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested loan.

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