{"ok":true,"canonical_url":"https://dealroom.so/glossary/deferred-prosecution-agreement","api_url":"https://dealroom.so/api/public/glossary/deferred-prosecution-agreement","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-agreement","term":"Deferred prosecution agreement","group":"People and paperwork","definition":"An agreement where a prosecutor agrees to drop charges after a period if an individual or company meets certain conditions. For SBA loan applicants, this can raise character eligibility concerns.","what_it_means":"The SBA requires all owners of 20% or more to disclose any criminal history, including deferred prosecution agreements, on Form 1919. While not an automatic disqualifier, the SBA will review the nature of the offense and compliance with the agreement. Be prepared to provide full details and documentation to your lender.","url":"https://dealroom.so/glossary/deferred-prosecution-agreement","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":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"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 agreement","url":"https://dealroom.so/glossary/deferred-prosecution-agreement","source_type":"DealRoom Data"}}