We recommend not funding a Sole Proprietorship as it will report any business credit to their consumer(personal) profile.
Yes we would see worse results from clients with a Sole Propreitorship. Sole Propreitorships are unincorporated businesses and carry all the liability and banks know that and will assess their risks as needed which would decrease their funding potential.
This article provides good detail.
https://www.forbes.com/advisor/business/what-is-a-sole-proprietorship/
