{"ok":true,"canonical_url":"https://dealroom.so/glossary/crime-involving-fraud","api_url":"https://dealroom.so/api/public/glossary/crime-involving-fraud","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":"crime-involving-fraud","term":"Crime involving fraud","group":"People and paperwork","definition":"Any criminal offense where deception is used for personal gain or to cause loss to another. This is a red flag for SBA loan eligibility and character requirements.","what_it_means":"If you, as the buyer, or any key principal in the business, have a past conviction for fraud, it can make you ineligible for an SBA loan. The SBA checks character requirements thoroughly, including criminal history. Be upfront about any past issues, as nondisclosure can lead to loan denial or even fraud allegations.","url":"https://dealroom.so/glossary/crime-involving-fraud","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":"moral-turpitude","term":"Moral turpitude","url":"https://dealroom.so/glossary/moral-turpitude"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"debarred-from-federal-programs","term":"Debarred from federal programs","url":"https://dealroom.so/glossary/debarred-from-federal-programs"}],"related_questions":[{"question":"What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a"},{"question":"Does a business acquisition involving an earn-out provision complicate SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-a-business-acquisition-involving-an-earn-out-provision-complicate-sba-7-a-loan-approv"},{"question":"When is an Environmental Questionnaire (Form 1081) required for a 7(a) loan involving real estate?","url":"https://dealroom.so/for-lenders/questions/when-is-an-environmental-questionnaire-form-1081-required-for-a-7-a-loan-involving-real-es"},{"question":"What constitutes a 'prudent' environmental due diligence standard for a 7(a) loan involving commercial real estate?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-prudent-environmental-due-diligence-standard-for-a-7-a-loan-involving-c"},{"question":"Beyond Form 1919, what specific additional forms are always required for a business acquisition loan involving real estate?","url":"https://dealroom.so/for-lenders/questions/beyond-form-1919-what-specific-additional-forms-are-always-required-for-a-business-acquisi"},{"question":"What specific due diligence is required for a 7(a) loan involving a change of ownership between related parties?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-a-7-a-loan-involving-a-change-of-ownership-bet"}]},"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 — Crime involving fraud","url":"https://dealroom.so/glossary/crime-involving-fraud","source_type":"DealRoom Data"}}