{"ok":true,"canonical_url":"https://dealroom.so/glossary/character-and-background-checks","api_url":"https://dealroom.so/api/public/glossary/character-and-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":"character-and-background-checks","term":"Character and Background Checks","group":"People and paperwork","definition":"These are investigations into your personal history, including credit, criminal, and sometimes educational or employment records. Buyers care because lenders conduct these to assess your eligibility and trustworthiness for an SBA loan.","what_it_means":"Every owner with 20% or more equity will undergo these checks, using forms like SBA Form 1919. Lenders look for indicators of good character, such as a strong credit report, absence of serious criminal history, and no previous federal debarments. Be prepared to provide all requested information accurately.","url":"https://dealroom.so/glossary/character-and-background-checks","official_sources":[{"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"},{"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":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"criminal-conviction","term":"Criminal Conviction","url":"https://dealroom.so/glossary/criminal-conviction"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"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":"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":"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":"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"}]},"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 — Character and Background Checks","url":"https://dealroom.so/glossary/character-and-background-checks","source_type":"DealRoom Data"}}