{"ok":true,"canonical_url":"https://dealroom.so/glossary/civil-penalty","api_url":"https://dealroom.so/api/public/glossary/civil-penalty","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":"civil-penalty","term":"Civil Penalty","group":"People and paperwork","definition":"This is a non-criminal financial punishment imposed by a government agency for violating a law or regulation. Buyers care because undisclosed or significant civil penalties can reflect poorly on a business or individual's compliance history and potentially affect SBA eligibility.","what_it_means":"While not a criminal conviction, significant civil penalties, especially those related to financial misconduct or regulatory non-compliance, might raise red flags during character and background checks. Ensure full disclosure on Form 1919 if applicable, as transparency is key to the SBA's \"good character\" assessment.","url":"https://dealroom.so/glossary/civil-penalty","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":"character-and-background-checks","term":"Character and Background Checks","url":"https://dealroom.so/glossary/character-and-background-checks"},{"slug":"criminal-charge","term":"Criminal Charge","url":"https://dealroom.so/glossary/criminal-charge"},{"slug":"omission-of-material-fact","term":"Omission of Material Fact","url":"https://dealroom.so/glossary/omission-of-material-fact"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"related_questions":[{"question":"How do past civil litigation or judgments impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-do-past-civil-litigation-or-judgments-impact-my-sba-7-a-loan-approval"},{"question":"Does a pending civil lawsuit against me personally affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-a-pending-civil-lawsuit-against-me-personally-affect-sba-7-a-loan-approval"},{"question":"Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/does-having-a-recent-civil-judgment-against-me-affect-my-sba-7-a-loan-eligibility"},{"question":"Will a past civil lawsuit settlement (not bankruptcy) affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/will-a-past-civil-lawsuit-settlement-not-bankruptcy-affect-my-sba-7-a-loan-eligibility"},{"question":"Does a past civil lawsuit or judgment, not criminal, affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-a-past-civil-lawsuit-or-judgment-not-criminal-affect-my-eligibility-for-an-sba-7-a-lo"},{"question":"Will an outstanding personal judgment (e.g., from a civil lawsuit) prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/will-an-outstanding-personal-judgment-e-g-from-a-civil-lawsuit-prevent-me-from-getting-an-"}]},"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 — Civil Penalty","url":"https://dealroom.so/glossary/civil-penalty","source_type":"DealRoom Data"}}