{"ok":true,"canonical_url":"https://dealroom.so/glossary/breach-of-trust","api_url":"https://dealroom.so/api/public/glossary/breach-of-trust","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":"breach-of-trust","term":"Breach of Trust","group":"People and paperwork","definition":"A violation of a fiduciary duty or misuse of entrusted funds or property. The SBA considers convictions for such crimes as a serious character issue for loan applicants.","what_it_means":"The SBA scrutinizes any applicant's history for crimes involving \"breach of trust,\" such as embezzlement or fraud. If you or any key principal has been convicted, is on parole, or probation for such a crime, it will likely render you ineligible for an SBA loan. Full disclosure on SBA Form 1919 is mandatory, as any nondisclosure can lead to a guaranty denial.","url":"https://dealroom.so/glossary/breach-of-trust","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":"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"}],"related":[{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"embezzlement","term":"Embezzlement","url":"https://dealroom.so/glossary/embezzlement"},{"slug":"misrepresentation","term":"Misrepresentation","url":"https://dealroom.so/glossary/misrepresentation"},{"slug":"probation","term":"Probation","url":"https://dealroom.so/glossary/probation"}],"related_questions":[{"question":"For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/for-a-business-owned-by-a-trust-what-citizenship-and-residency-requirements-apply-to-the-t"},{"question":"Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?","url":"https://dealroom.so/for-lenders/questions/can-a-business-owned-by-a-trust-be-eligible-for-a-7-a-loan-if-the-trustee-is-a-foreign-nat"},{"question":"How does the SBA determine affiliation between businesses controlled by a common trust?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-between-businesses-controlled-by-a-common-trust"},{"question":"When does common ownership through a trust or estate create affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-through-a-trust-or-estate-create-affiliation-for-size-purposes"},{"question":"Can I use inherited money that is currently in a trust to fund my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-inherited-money-that-is-currently-in-a-trust-to-fund-my-equity-injection"},{"question":"Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-trust-or-an-estate-be-an-eligible-borrower-for-an-sba-7-a-loan"}]},"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 — Breach of Trust","url":"https://dealroom.so/glossary/breach-of-trust","source_type":"DealRoom Data"}}