{"ok":true,"canonical_url":"https://dealroom.so/glossary/crime-involving-fraud-or-dishonesty","api_url":"https://dealroom.so/api/public/glossary/crime-involving-fraud-or-dishonesty","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-or-dishonesty","term":"Crime Involving Fraud or Dishonesty","group":"People and paperwork","definition":"This refers to offenses like embezzlement, bribery, or fraud. If a key principal has such a crime on their record, it's a major red flag for the SBA and can prevent loan approval.","what_it_means":"The SBA scrutinizes the character of all key principals. Any conviction, plea, or even a deferred prosecution for a crime involving fraud or dishonesty typically makes a borrower ineligible for an SBA loan. Be upfront and disclose everything asked on Form 1919 to avoid an automatic denial.","url":"https://dealroom.so/glossary/crime-involving-fraud-or-dishonesty","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":"deferred-prosecution","term":"Deferred Prosecution","url":"https://dealroom.so/glossary/deferred-prosecution"},{"slug":"current-indictment","term":"Current indictment","url":"https://dealroom.so/glossary/current-indictment"},{"slug":"arrest","term":"Arrest","url":"https://dealroom.so/glossary/arrest"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"}],"related_questions":[{"question":"What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?","url":"https://dealroom.so/for-lenders/questions/what-specific-scenarios-involving-shared-directors-officers-or-key-employees-constitute-co"},{"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"}]},"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 or Dishonesty","url":"https://dealroom.so/glossary/crime-involving-fraud-or-dishonesty","source_type":"DealRoom Data"}}