{"ok":true,"canonical_url":"https://dealroom.so/glossary/probation","api_url":"https://dealroom.so/api/public/glossary/probation","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":"probation","term":"Probation","group":"People and paperwork","definition":"A court-ordered period of supervision after a criminal conviction, allowing an individual to avoid incarceration if they meet certain conditions. It's a red flag for SBA loan eligibility.","what_it_means":"If you, or any key principal, are currently on probation for a felony or a crime involving fraud, embezzlement, or breach of trust, you are generally ineligible for an SBA loan. The SBA assesses character, and an active probation indicates a current legal issue. Ensure all key principals disclose any such history upfront to avoid surprises.","url":"https://dealroom.so/glossary/probation","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":"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":"parole","term":"Parole","url":"https://dealroom.so/glossary/parole"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"breach-of-trust","term":"Breach of Trust","url":"https://dealroom.so/glossary/breach-of-trust"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"}],"related_questions":[{"question":"Can a business be eligible for a 7(a) loan if a principal is currently on probation or parole for a felony?","url":"https://dealroom.so/for-lenders/questions/can-a-business-be-eligible-for-a-7-a-loan-if-a-principal-is-currently-on-probation-or-paro"}]},"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 — Probation","url":"https://dealroom.so/glossary/probation","source_type":"DealRoom Data"}}