{"ok":true,"canonical_url":"https://dealroom.so/glossary/character-evaluation","api_url":"https://dealroom.so/api/public/glossary/character-evaluation","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-evaluation","term":"Character evaluation","group":"People and paperwork","definition":"The SBA's assessment of the buyer's (and other key principals') integrity and trustworthiness, based on credit history and background checks. Buyers care because a poor character evaluation can disqualify you from an SBA loan, regardless of the business's strength.","what_it_means":"The SBA reviews your personal credit history, criminal records, and any past defaults on government debt. You'll complete Form 1919, disclosing relevant information. Be transparent with your lender about any issues upfront; undisclosed problems can lead to loan denial or even fraud allegations.","url":"https://dealroom.so/glossary/character-evaluation","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":"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":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"}],"related_questions":[{"question":"How long does the SBA's evaluation process typically take after my lender submits the loan package?","url":"https://dealroom.so/sba-7a/questions/how-long-does-the-sba-s-evaluation-process-typically-take-after-my-lender-submits-the-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"},{"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":"How does the SBA's 'prudent lending standards' apply to the evaluation of working capital projections for a new business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-s-prudent-lending-standards-apply-to-the-evaluation-of-working-capital-pr"},{"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 evaluation","url":"https://dealroom.so/glossary/character-evaluation","source_type":"DealRoom Data"}}