{"ok":true,"canonical_url":"https://dealroom.so/glossary/criminal-background-check","api_url":"https://dealroom.so/api/public/glossary/criminal-background-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":"criminal-background-check","term":"Criminal Background Check","group":"People and paperwork","definition":"The SBA requires a criminal background check for all owners of 20% or more of the business. Certain past convictions can make you ineligible for a 7(a) loan.","what_it_means":"As a buyer and key principal, you will undergo an SBA-mandated criminal background check. Disclose any past legal issues early to your lender. Certain felonies, especially those involving fraud or embezzlement, will disqualify you, so transparency is key to avoiding late-stage surprises.","url":"https://dealroom.so/glossary/criminal-background-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":"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":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"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":"When is a lender required to conduct a criminal background check for non-owner managers or key employees of an applicant business?","url":"https://dealroom.so/for-lenders/questions/when-is-a-lender-required-to-conduct-a-criminal-background-check-for-non-owner-managers-or"},{"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 lender need to collect separate consent forms for background checks from non-owner spouses?","url":"https://dealroom.so/for-lenders/questions/does-the-lender-need-to-collect-separate-consent-forms-for-background-checks-from-non-owne"},{"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"}]},"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 — Criminal Background Check","url":"https://dealroom.so/glossary/criminal-background-check","source_type":"DealRoom Data"}}