{"ok":true,"canonical_url":"https://dealroom.so/glossary/fraud-charge","api_url":"https://dealroom.so/api/public/glossary/fraud-charge","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":"fraud-charge","term":"Fraud Charge","group":"People and paperwork","definition":"This is a criminal accusation of intentional deception for personal gain, especially financial. Buyers care because a fraud charge, even if not a conviction, is a major red flag for SBA lenders and can lead to immediate loan ineligibility.","what_it_means":"The SBA has strict character requirements, and any history of fraud, including charges or convictions, is a significant disqualifier for all key principals. Transparency is paramount; any hint of fraud, past or present, on Form 1919 or other documents, will halt your loan process.","url":"https://dealroom.so/glossary/fraud-charge","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":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"criminal-charge","term":"Criminal Charge","url":"https://dealroom.so/glossary/criminal-charge"},{"slug":"criminal-conviction","term":"Criminal Conviction","url":"https://dealroom.so/glossary/criminal-conviction"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"omission-of-material-fact","term":"Omission of Material Fact","url":"https://dealroom.so/glossary/omission-of-material-fact"}],"related_questions":[{"question":"What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a"},{"question":"Does the SBA charge any fees to me directly for applying?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-charge-any-fees-to-me-directly-for-applying"},{"question":"Does the SBA tell lenders exactly what interest rate they must charge?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-tell-lenders-exactly-what-interest-rate-they-must-charge"},{"question":"Does the SBA charge me any ongoing fees after my loan is approved?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-charge-me-any-ongoing-fees-after-my-loan-is-approved"},{"question":"Can the lender charge an additional \"packaging fee\" on top of the SBA fees?","url":"https://dealroom.so/sba-7a/questions/can-the-lender-charge-an-additional-packaging-fee-on-top-of-the-sba-fees"},{"question":"Are there caps on the interest rates lenders can charge for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-there-caps-on-the-interest-rates-lenders-can-charge-for-sba-7-a-loans"}]},"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 — Fraud Charge","url":"https://dealroom.so/glossary/fraud-charge","source_type":"DealRoom Data"}}