{"ok":true,"canonical_url":"https://dealroom.so/glossary/deferred-prosecution","api_url":"https://dealroom.so/api/public/glossary/deferred-prosecution","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":"deferred-prosecution","term":"Deferred Prosecution","group":"People and paperwork","definition":"A deferred prosecution agreement means someone involved in the loan application admitted to a crime but avoids conviction by meeting conditions. The SBA views this seriously, potentially impacting loan eligibility if a key principal is involved.","what_it_means":"The SBA's Form 1919 asks about criminal history, including deferred prosecutions. If a key principal has one, it triggers a character review by the SBA. You'll need to provide full details and potentially wait for SBA approval, which can delay or even derail the loan.","url":"https://dealroom.so/glossary/deferred-prosecution","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":"crime-involving-fraud-or-dishonesty","term":"Crime Involving Fraud or Dishonesty","url":"https://dealroom.so/glossary/crime-involving-fraud-or-dishonesty"},{"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 if the business I'm buying has existing deferred revenue or unearned income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-existing-deferred-revenue-or-unearned-income"},{"question":"Can a partial equity injection come from a deferred management bonus from my current employer?","url":"https://dealroom.so/sba-7a/questions/can-a-partial-equity-injection-come-from-a-deferred-management-bonus-from-my-current-emplo"},{"question":"How does a lender underwrite a business acquisition with existing deferred revenue or unearned income?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-underwrite-a-business-acquisition-with-existing-deferred-revenue-or-unea"},{"question":"How does a lender assess deferred maintenance or capital expenditure needs of an acquired business?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-deferred-maintenance-or-capital-expenditure-needs-of-an-acquired-"},{"question":"Can a seller note with deferred payments but no interest count as full standby for equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-with-deferred-payments-but-no-interest-count-as-full-standby-for-equity-"},{"question":"What specific conditions allow a seller note with deferred principal payments but immediate interest to qualify as full standby?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-allow-a-seller-note-with-deferred-principal-payments-but-immediat"}]},"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 — Deferred Prosecution","url":"https://dealroom.so/glossary/deferred-prosecution","source_type":"DealRoom Data"}}