{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-i-have-a-prior-felony-conviction-even-if-it-s-over-10-years-old-will-it-impact-my-sba-7","api_url":"https://dealroom.so/api/public/questions/if-i-have-a-prior-felony-conviction-even-if-it-s-over-10-years-old-will-it-impact-my-sba-7","question":"If I have a prior felony conviction, even if it's over 10 years old, will it impact my SBA 7(a) eligibility?","topic":"Credit & character","audience":"borrower","bot_mode":"buyer","short_answer":"A felony conviction over 10 years old generally will not impact SBA 7(a) eligibility if you have completed the sentence, probation, or parole and demonstrate current good character.","rule":"The SBA considers an applicant's character, which includes criminal history. However, there are specific look-back periods. For non-financial felony convictions, if more than 10 years have passed since the conviction or release from incarceration, parole, or probation (whichever is later), it typically does not automatically disqualify an applicant, provided other eligibility criteria are met.","example":"A buyer discloses a felony conviction from 15 years ago, for which they completed probation 12 years ago. As this falls outside the 10-year look-back period, it does not negatively impact their 7(a) loan eligibility, assuming all other criteria are met.","what_lenders_check":"Lenders must verify the criminal history information provided by the applicant, including dates of conviction and completion of sentence. They ensure that the conviction falls outside the relevant look-back period and that there are no current legal issues.","required_facts":["Prior felony conviction","Over 10 years old","Sentence completed","No automatic disqualification","Current good character"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","Criminal Justice Reviews for SBA Business Loan Programs - Final Rule","SBA Form 1919 - Borrower Information Form"],"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":"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"},{"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"}],"related_questions":[{"question":"How does a recent felony conviction, even if minor, impact my eligibility for an SBA 7(a) loan for a $400,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-felony-conviction-even-if-minor-impact-my-eligibility-for-an-sba-7-a-loa"},{"question":"If I have a recent history of personal loan defaults, how will that affect my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/if-i-have-a-recent-history-of-personal-loan-defaults-how-will-that-affect-my-sba-7-a-loan-"},{"question":"Can prior bankruptcies or foreclosures impact my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/can-prior-bankruptcies-or-foreclosures-impact-my-sba-7-a-loan-eligibility"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"},{"question":"Can I use an SBA 7(a) loan for a business acquisition if I have limited industry experience?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-for-a-business-acquisition-if-i-have-limited-industry-experience"},{"question":"How important is my personal financial statement for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-financial-statement-for-an-sba-7-a-loan-application"}],"related_terms":[{"term":"Felony Conviction","url":"https://dealroom.so/glossary/felony-conviction"},{"term":"Discharged felony conviction","url":"https://dealroom.so/glossary/discharged-felony-conviction"},{"term":"Felony","url":"https://dealroom.so/glossary/felony"},{"term":"Will/trust","url":"https://dealroom.so/glossary/will-trust"},{"term":"Fiscal years","url":"https://dealroom.so/glossary/fiscal-years"},{"term":"Conviction","url":"https://dealroom.so/glossary/conviction"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-i-have-a-prior-felony-conviction-even-if-it-s-over-10-years-old-will-it-impact-my-sba-7","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."]}