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.