{"ok":true,"canonical_url":"https://dealroom.so/glossary/character-based-eligibility-criterion","api_url":"https://dealroom.so/api/public/glossary/character-based-eligibility-criterion","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-based-eligibility-criterion","term":"Character-based eligibility criterion","group":"The loan itself","definition":"A set of SBA rules that assess the honesty and integrity of a borrower and key principals. Past criminal history or certain financial issues can make you ineligible for a loan.","what_it_means":"The SBA wants to ensure borrowers are trustworthy. This criterion looks at things like criminal records, past bankruptcies, or defaults on federal debt. Be prepared to disclose all relevant information on Form 1919; misrepresentation can lead to loan denial or even fraud charges.","url":"https://dealroom.so/glossary/character-based-eligibility-criterion","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":"borrower-eligibility","term":"Borrower eligibility","url":"https://dealroom.so/glossary/borrower-eligibility"},{"slug":"crime-of-moral-turpitude","term":"Crime of moral turpitude","url":"https://dealroom.so/glossary/crime-of-moral-turpitude"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"related_questions":[{"question":"If my business is home-based, does that affect its eligibility for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/if-my-business-is-home-based-does-that-affect-its-eligibility-for-an-sba-7-a-acquisition-l"},{"question":"How does the SBA determine if a business is considered \"small\" for eligibility based on its NAICS code?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-a-business-is-considered-small-for-eligibility-based-on-its-"},{"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"}]},"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-based eligibility criterion","url":"https://dealroom.so/glossary/character-based-eligibility-criterion","source_type":"DealRoom Data"}}