{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrower-misrepresentation","api_url":"https://dealroom.so/api/public/glossary/borrower-misrepresentation","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-misrepresentation","term":"Borrower Misrepresentation","group":"People and paperwork","definition":"Providing false or misleading information to the lender or SBA. This is a serious offense that can lead to loan denial, default, or even fraud charges.","what_it_means":"Any inaccurate or omitted material information on your SBA loan application, including personal financial statements or business projections, constitutes misrepresentation. Ensure complete honesty and accuracy in all disclosures, as lenders and the SBA conduct thorough verification, and misrepresentation can jeopardize your entire acquisition.","url":"https://dealroom.so/glossary/borrower-misrepresentation","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":"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":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"omission-of-material-facts","term":"Omission of material facts","url":"https://dealroom.so/glossary/omission-of-material-facts"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"penalty-of-perjury","term":"Penalty of perjury","url":"https://dealroom.so/glossary/penalty-of-perjury"}],"related_questions":[{"question":"What constitutes a \"material misrepresentation\" by a borrower that could lead to a 7(a) guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-misrepresentation-by-a-borrower-that-could-lead-to-a-7-a-guara"},{"question":"What constitutes a \"material misrepresentation\" by a borrower that could lead to an outright 7(a) guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-misrepresentation-by-a-borrower-that-could-lead-to-an-outright"},{"question":"What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-sba-form-1919-contains-material-omissions-or-misrepresentatio"},{"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"},{"question":"What does 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"What does the 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-the-sba-guarantee-actually-mean-for-me-the-borrower"}]},"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 Misrepresentation","url":"https://dealroom.so/glossary/borrower-misrepresentation","source_type":"DealRoom Data"}}