{"ok":true,"canonical_url":"https://dealroom.so/glossary/disqualifying-conviction","api_url":"https://dealroom.so/api/public/glossary/disqualifying-conviction","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":"disqualifying-conviction","term":"Disqualifying Conviction","group":"People and paperwork","definition":"A serious criminal conviction that makes you ineligible for an SBA loan. The SBA checks the background of all owners, so this matters for every key principal.","what_it_means":"If you or any 20%+ owner has certain felony convictions, especially those involving financial fraud or a crime of moral turpitude within the last two years, the SBA will deny the loan. Be upfront with your lender about any past issues; they'll find out during the credit check and Form 1919 review.","url":"https://dealroom.so/glossary/disqualifying-conviction","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":"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":"What constitutes \"passive income\" disqualifying a business from 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-passive-income-disqualifying-a-business-from-7-a-loan-eligibility"},{"question":"What specific types of prior criminal offenses are generally disqualifying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-specific-types-of-prior-criminal-offenses-are-generally-disqualifying-for-an-sba-7-a-"},{"question":"What specific types of criminal offenses are generally disqualifying for an SBA 7(a) loan applicant or owner?","url":"https://dealroom.so/for-lenders/questions/what-specific-types-of-criminal-offenses-are-generally-disqualifying-for-an-sba-7-a-loan-a"},{"question":"What if I have a prior felony conviction on my record?","url":"https://dealroom.so/sba-loans/basics/what-if-i-have-a-prior-felony-conviction-on-my-record"},{"question":"Will a felony conviction prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/will-a-felony-conviction-prevent-me-from-getting-an-sba-7-a-loan"},{"question":"Will a past criminal conviction prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/will-a-past-criminal-conviction-prevent-me-from-getting-an-sba-7-a-loan"}]},"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 — Disqualifying Conviction","url":"https://dealroom.so/glossary/disqualifying-conviction","source_type":"DealRoom Data"}}