{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrower-character","api_url":"https://dealroom.so/api/public/glossary/borrower-character","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":"borrower-character","term":"Borrower Character","group":"People and paperwork","definition":"This refers to your honesty, integrity, and reliability as assessed by the lender. It's a subjective but crucial factor in getting an SBA loan approved.","what_it_means":"The SBA requires borrowers to demonstrate good character. This involves reviewing your credit history, criminal record (if any), and any past defaults on government-backed loans. Be prepared to explain any past issues transparently, as your character is a key C of credit.","url":"https://dealroom.so/glossary/borrower-character","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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"}],"related":[{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"full-credit-report","term":"Full Credit Report","url":"https://dealroom.so/glossary/full-credit-report"},{"slug":"personal-loan-default","term":"Personal Loan Default","url":"https://dealroom.so/glossary/personal-loan-default"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"}],"related_questions":[{"question":"What basic character requirements must business owners meet when applying for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-basic-character-requirements-must-business-owners-meet-when-applying-for-an-sba-7-a-l"},{"question":"How does a lender assess 'good character' for all principals on a 7(a) loan application?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-good-character-for-all-principals-on-a-7-a-loan-application"},{"question":"What are the basic character requirements for business owners applying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-basic-character-requirements-for-business-owners-applying-for-an-sba-7-a-loan"},{"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":"What types of non-financial character issues (e.g., past legal disputes not criminal) might disqualify me for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-types-of-non-financial-character-issues-e-g-past-legal-disputes-not-criminal-might-di"},{"question":"What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-needed-to-verify-a-borrower-s-equity-injection-when-it-comes-from-an"}]},"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 — Borrower Character","url":"https://dealroom.so/glossary/borrower-character","source_type":"DealRoom Data"}}