{"ok":true,"canonical_url":"https://dealroom.so/glossary/discharge","api_url":"https://dealroom.so/api/public/glossary/discharge","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":"discharge","term":"Discharge","group":"Reading the business","definition":"Discharge is the legal release from debt obligations, typically granted in a bankruptcy proceeding. While it clears old debts, a recent discharge from bankruptcy will still be scrutinized by SBA lenders and can affect your loan eligibility.","what_it_means":"A bankruptcy discharge doesn't erase the fact of the bankruptcy from your credit history, which lenders will see. If the discharge was recent, or if the bankruptcy involved fraud or significant government losses, your SBA loan application will likely be rejected due to character concerns.","url":"https://dealroom.so/glossary/discharge","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":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"personal-judgment","term":"Personal judgment","url":"https://dealroom.so/glossary/personal-judgment"}],"related_questions":[{"question":"How does having a past personal bankruptcy that has been discharged affect my eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-having-a-past-personal-bankruptcy-that-has-been-discharged-affect-my-eligibility"},{"question":"What if an applicant business owner has a recent felony conviction that has been discharged?","url":"https://dealroom.so/for-lenders/questions/what-if-an-applicant-business-owner-has-a-recent-felony-conviction-that-has-been-discharge"},{"question":"How does a prior personal bankruptcy, now discharged, impact my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-prior-personal-bankruptcy-now-discharged-impact-my-sba-7-a-loan-application"},{"question":"Will a past bankruptcy (e.g., Chapter 7 discharged 5 years ago) automatically disqualify me from an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/will-a-past-bankruptcy-e-g-chapter-7-discharged-5-years-ago-automatically-disqualify-me-fr"},{"question":"How does a personal bankruptcy from five years ago, now discharged, impact my eligibility for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-personal-bankruptcy-from-five-years-ago-now-discharged-impact-my-eligibility-fo"}]},"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 — Discharge","url":"https://dealroom.so/glossary/discharge","source_type":"DealRoom Data"}}