by Debra Schweikowsky | December 31, 2025
Business owners often ask why they need to use their Social Security Number (SSN) when they have a Federal Employer Identification Number (FEIN) or a D-U-N-S number when applying for a business loan. There is a lot of information circulating on social media suggesting that once you obtain a FEIN and a D-U-N-S Number, you can automatically qualify for a business loan without using your personal SSN. Unfortunately, this can be misleading for entrepreneurs seeking funding to start or grow their business. While some online lenders, microfinance programs, and merchant cash advance providers may offer funding without requiring an SSN, these products often come with higher costs, stricter repayment terms, and increased risk. Without careful evaluation, they can be financially harmful to a business.
Let’s break down the differences between the SSN, FEIN, and D-U-N-S Number, and explain why each matter.
Social Security Number
An SSN is required by lenders primarily for identity verification and credit evaluation. Federal regulations, including the USA PATRIOT Act, require financial institutions to confirm the identity of borrowers and prevent fraud. A borrower’s SSN allows lenders to review personal credit history, including payment behavior, debt utilization, and overall financial responsibility. For most small businesses including sole proprietorships, single-member LLCs, and corporation’s lenders may require a personal guarantee. This guarantee makes the business owner personally liable for repayment, which is why the SSN remains important for underwriting decisions.
Federal Employer Identification Number
A Federal Employer Identification Number, commonly referred to as a FEIN, serves as a business’s tax identification number with the Internal Revenue Service. It is used to report income, pay taxes, hire employees, issue W-2 forms, and open business bank accounts. When a FEIN is issued, the IRS requires a responsible party, usually identified by an SSN, which links the business to its owner for tax purposes. While lenders rely on the FEIN to review business financials and verify a legitimate entity, it does not replace the need to evaluate the owner’s personal credit, particularly in the early stages of a business.
D-U-N-S Number
A D-U-N-S Number, issued by Dun & Bradstreet is used to establish and track business credit. This nine-digit identifier allows vendors, lenders, and government agencies to assess a company’s payment history and credit risk. Building a strong D-U-N-S profile can improve access to trade credit, supplier terms, and certain financing opportunities. However, a D-U-N-S Number is a supplement to rather than a substitute for personal credit. For most small businesses, lenders still rely on the owner’s SSN to evaluate overall risk.
Each identification number serves a purpose. The FEIN is used for tax and regulatory compliance, the D-U-N-S Number supports business credit reporting, and the SSN connects a business owner’s financial history to the lending decision. For most small businesses, the SSN remains the most important factor in securing affordable financing. As a business matures, builds strong financial statements, and establishes independent credit, reliance on personal credit may decrease. But lenders will still request the owner’s SSN.
Understanding how a SSN, FEIN, and DUNS work together can help entrepreneurs make informed funding decisions and avoid common lending mistakes that could hinder their business’s financial health.
Debra Schweikowsky
Consultants, Finance, Pinellas, SchweikowskyFlorida SBDC at Pinellas County Economic Development
Specialty: Economic Development Finance Professional (EDFP-BCA), Capital Access, Finance
Debra Schweikowsky is a business professional with experience in business management, administration, banking and finance. She was a small business owner with more than 20 years of experience, including as a franchisee. As a business owner, she successfully implemented a variety of revenue enhancement strategies and is results driven. As a franchisee, she successfully implemented a variety of revenue enhancements, sales tactics, and marketing initiatives, to increase revenues. Schweikowsky successfully sold her business by following an established exit strategy.