{"ok":true,"canonical_url":"https://dealroom.so/glossary/disqualified-person","api_url":"https://dealroom.so/api/public/glossary/disqualified-person","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":"disqualified-person","term":"Disqualified Person","group":"People and paperwork","definition":"This refers to individuals with certain past issues, like federal loan defaults, felonies, or fraud, that prevent them from getting an SBA loan. The SBA checks all key principals.","what_it_means":"All owners of 20% or more, officers, directors, and managing members must complete SBA Form 1919 and undergo a character check. If you, or anyone else involved, is deemed a disqualified person, the loan cannot proceed.","url":"https://dealroom.so/glossary/disqualified-person","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":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"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"}],"related_questions":[{"question":"Are some business activities or industries automatically disqualified from SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/are-some-business-activities-or-industries-automatically-disqualified-from-sba-7-a-loan-el"},{"question":"Who should a business identify and insure as a key person?","url":"https://dealroom.so/sba-7a/questions/who-should-a-business-identify-and-insure-as-a-key-person"},{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"What is the typical amount of key-person life insurance coverage needed?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-amount-of-key-person-life-insurance-coverage-needed"},{"question":"How is the ideal coverage amount for key-person life insurance typically calculated?","url":"https://dealroom.so/sba-7a/questions/how-is-the-ideal-coverage-amount-for-key-person-life-insurance-typically-calculated"},{"question":"Should a business choose term or permanent life insurance for key person protection?","url":"https://dealroom.so/sba-7a/questions/should-a-business-choose-term-or-permanent-life-insurance-for-key-person-protection"}]},"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 — Disqualified Person","url":"https://dealroom.so/glossary/disqualified-person","source_type":"DealRoom Data"}}