{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/does-a-misdemeanor-on-my-record-prevent-me-from-getting-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/does-a-misdemeanor-on-my-record-prevent-me-from-getting-an-sba-7-a-loan","question":"Does a misdemeanor on my record prevent me from getting an SBA 7(a) loan?","topic":"Eligibility & criminal history","audience":"new","bot_mode":"buyer","short_answer":"It depends; a misdemeanor might not automatically disqualify you, but the SBA and lenders will review the nature and recency of the offense.","rule":"The SBA conducts a criminal history review for all principals. While felonies, especially recent ones, are often disqualifying, misdemeanors are assessed on a case-by-case basis. The SBA considers the type of offense, how long ago it occurred, and whether it involved financial fraud or breach of trust. Minor, old, non-financial misdemeanors are less likely to be an issue.","example":"A borrower with a misdemeanor for a minor traffic offense from 10 years ago would likely be eligible. However, a recent misdemeanor for embezzlement might lead to disqualification.","what_lenders_check":"Lenders require applicants to disclose all criminal history on SBA Form 1919. They then work with the SBA to determine eligibility based on the specific circumstances, ensuring compliance with all criminal justice review policies.","required_facts":["Not automatic disqualification","Case-by-case review","Nature of offense","Recency","Financial crimes"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","SBA Form 1919 - Borrower Information Form","Criminal Justice Reviews for SBA Business Loan Programs - Final Rule"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"title":"Criminal Justice Reviews for SBA Business Loan Programs - Final Rule","url":"https://www.federalregister.gov/documents/2024/04/30/2024-09009/criminal-justice-reviews-for-the-sba-business-loan-programs-disaster-loan-programs-and-surety-bond"}],"related_questions":[{"question":"How does a past criminal record affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-a-past-criminal-record-affect-my-eligibility-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Aggregate SBA 7(a) Loan Eligibility","url":"https://dealroom.so/glossary/aggregate-sba-7-a-loan-eligibility"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/does-a-misdemeanor-on-my-record-prevent-me-from-getting-an-sba-7-a-loan","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}