{"ok":true,"canonical_url":"https://dealroom.so/glossary/character-check","api_url":"https://dealroom.so/api/public/glossary/character-check","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-check","term":"Character Check","group":"People and paperwork","definition":"This is the SBA's evaluation of the borrower's background and honesty, including credit history and any criminal record, to assess their trustworthiness.","what_it_means":"The SBA performs a Character Check on all key principals, looking for issues like past bankruptcies, tax liens, or criminal convictions. You'll complete SBA Form 1919 and submit to a credit report review. Derogatory marks can jeopardize your eligibility, so be transparent with your lender early on.","url":"https://dealroom.so/glossary/character-check","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":"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":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"}],"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 SBA check my personal credit score directly when I apply?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-my-personal-credit-score-directly-when-i-apply"},{"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"},{"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"}]},"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 Check","url":"https://dealroom.so/glossary/character-check","source_type":"DealRoom Data"}}