{"ok":true,"canonical_url":"https://dealroom.so/glossary/background-checks","api_url":"https://dealroom.so/api/public/glossary/background-checks","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"background-checks","term":"Background Checks","group":"People and paperwork","definition":"These are investigations into your personal history, including criminal records, credit history, and sometimes employment, to assess your character and creditworthiness.","what_it_means":"The SBA requires Background Checks on all key principals involved in the loan. This includes reviewing your credit report for derogatory marks and checking for any criminal history, especially Felony Convictions. Any adverse findings can impact your eligibility, so be transparent with your lender early in the process.","url":"https://dealroom.so/glossary/background-checks","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"related":[{"slug":"felony-convictions","term":"Felony Convictions","url":"https://dealroom.so/glossary/felony-convictions"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"}],"related_questions":[{"question":"Does the lender need to collect separate consent forms for background checks from non-owner spouses?","url":"https://dealroom.so/for-lenders/questions/does-the-lender-need-to-collect-separate-consent-forms-for-background-checks-from-non-owne"},{"question":"Are there any specific character or background checks for owners applying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-character-or-background-checks-for-owners-applying-for-an-sba-7-a-l"},{"question":"Who specifically counts as an 'associate' for SBA business size checks?","url":"https://dealroom.so/sba-loans/basics/who-specifically-counts-as-an-associate-for-sba-business-size-checks"},{"question":"What kind of records does the SBA check about my personal background?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-records-does-the-sba-check-about-my-personal-background"},{"question":"Does the SBA check my personal background, like criminal history, for a loan?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-my-personal-background-like-criminal-history-for-a-loan"},{"question":"If I have no direct industry experience but strong management background, can I get an SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-have-no-direct-industry-experience-but-strong-management-background-can-i-get-an-sba-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Background Checks","url":"https://dealroom.so/glossary/background-checks","source_type":"DealRoom Data"}}