{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-if-i-have-a-prior-felony-conviction-on-my-record","api_url":"https://dealroom.so/api/public/questions/what-if-i-have-a-prior-felony-conviction-on-my-record","question":"What if I have a prior felony conviction on my record?","topic":"Criminal History","audience":"new","bot_mode":"buyer","short_answer":"A prior felony conviction can impact eligibility for an SBA 7(a) loan, but it does not automatically disqualify you. The SBA reviews specific criminal history to assess eligibility.","rule":"The SBA requires applicants to disclose any criminal history. Certain types of offenses, especially those involving fraud, dishonesty, or a felony committed while on probation/parole, can lead to ineligibility. However, a single felony conviction, if not recent and not involving fraud, may be overcome. The SBA conducts a criminal justice review based on specific criteria.","example":"If a business owner had a felony conviction 15 years ago for a non-financial crime and has maintained a clean record since, they might still be eligible after a review. However, if an owner was convicted of bank fraud two years ago, they would likely be deemed ineligible due to the nature and recency of the offense.","what_lenders_check":"Lenders collect detailed information on any criminal history from SBA Form 1919 and submit it to the SBA for review. They are concerned with the recency, severity, and nature of the offense, and how it reflects on the applicant's character and trustworthiness.","required_facts":["Not automatic disqualification","Specific review","Fraud/dishonesty","Recency matters"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","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":"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":"What if I have a criminal record from a long time ago? Will that stop me from getting an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-if-i-have-a-criminal-record-from-a-long-time-ago-will-that-stop-me-from-getting-an-sb"}],"related_terms":[{"term":"Felony Conviction","url":"https://dealroom.so/glossary/felony-conviction"},{"term":"Criminal Record","url":"https://dealroom.so/glossary/criminal-record"},{"term":"Criminal Conviction","url":"https://dealroom.so/glossary/criminal-conviction"},{"term":"criminal history","url":"https://dealroom.so/glossary/criminal-history"},{"term":"Discharged felony conviction","url":"https://dealroom.so/glossary/discharged-felony-conviction"},{"term":"Criminal History Disclosure","url":"https://dealroom.so/glossary/criminal-history-disclosure"}],"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/what-if-i-have-a-prior-felony-conviction-on-my-record","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."]}