{"ok":true,"canonical_url":"https://dealroom.so/glossary/totality-of-the-circumstances-test","api_url":"https://dealroom.so/api/public/glossary/totality-of-the-circumstances-test","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":"totality-of-the-circumstances-test","term":"Totality of the circumstances test","group":"The loan itself","definition":"A comprehensive evaluation method used by the SBA to determine if a borrower has \"Good Character\" for a loan, considering all relevant facts. It's a broad look at your background.","what_it_means":"The SBA uses the Totality of the Circumstances Test for your Good Character determination, looking beyond isolated incidents to your overall history. This includes credit history, criminal record, and any past federal debt defaults. Full disclosure on Form 1919 is critical, as omission can lead to loan denial.","url":"https://dealroom.so/glossary/totality-of-the-circumstances-test","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":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"felony-indictment","term":"Felony indictment","url":"https://dealroom.so/glossary/felony-indictment"},{"slug":"criminal-information","term":"Criminal information","url":"https://dealroom.so/glossary/criminal-information"}],"related_questions":[{"question":"How does the 'totality of the circumstances' rule apply when determining affiliation for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-totality-of-the-circumstances-rule-apply-when-determining-affiliation-for-sba"},{"question":"What is the 'credit elsewhere' test for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-credit-elsewhere-test-for-an-sba-7-a-loan"},{"question":"How does the SBA test to make sure my business is actually 'small' enough for the program?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-test-to-make-sure-my-business-is-actually-small-enough-for-the-program"},{"question":"What specifically is the 'credit elsewhere' test and how does it affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/what-specifically-is-the-credit-elsewhere-test-and-how-does-it-affect-my-sba-7-a-loan-elig"},{"question":"If I am buying out a partner, does the SBA require the business to pass a cash flow test post-acquisition?","url":"https://dealroom.so/sba-7a/questions/if-i-am-buying-out-a-partner-does-the-sba-require-the-business-to-pass-a-cash-flow-test-po"},{"question":"Under what specific circumstances can a lender change the frequency of payments (e.g., from monthly to quarterly) without SBA approval?","url":"https://dealroom.so/for-lenders/questions/under-what-specific-circumstances-can-a-lender-change-the-frequency-of-payments-e-g-from-m"}]},"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 — Totality of the circumstances test","url":"https://dealroom.so/glossary/totality-of-the-circumstances-test","source_type":"DealRoom Data"}}