{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-look-back-period-for-criminal-history-when-evaluating-an-applicant-s-","api_url":"https://dealroom.so/api/public/questions/what-is-the-specific-look-back-period-for-criminal-history-when-evaluating-an-applicant-s-","question":"What is the specific look-back period for criminal history when evaluating an applicant's eligibility for an SBA 7(a) loan?","topic":"Eligibility determinations","audience":"lender","bot_mode":"lender","short_answer":"The look-back period for criminal history is generally 1 year for misdemeanor offenses involving fraud, bribery, embezzlement, or false statement, and typically 5 years for felony offenses after release from incarceration.","rule":"SBA scrutinizes the criminal history of principals to ensure they meet character requirements. Recent convictions for certain financial crimes or felonies can render an applicant ineligible. The specific look-back periods are designed to balance past offenses with the opportunity for rehabilitation and responsible business ownership.","example":"An applicant discloses a misdemeanor conviction for embezzlement from 18 months ago. The lender determines this falls outside the 1-year look-back period for such offenses, and therefore, it does not automatically disqualify the applicant based on this specific conviction.","what_lenders_check":"Lenders must accurately assess and document the criminal history of all principals using SBA Form 912 and compare it against the defined look-back periods to make a correct eligibility determination.","required_facts":["Criminal history","Look-back period","Misdemeanor offenses","Felony offenses","Character eligibility"],"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":"Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-trust-or-an-estate-be-an-eligible-borrower-for-an-sba-7-a-loan"},{"question":"What constitutes \"passive income\" disqualifying a business from 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-passive-income-disqualifying-a-business-from-7-a-loan-eligibility"},{"question":"Are businesses that primarily derive revenue from real estate rentals eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/are-businesses-that-primarily-derive-revenue-from-real-estate-rentals-eligible-for-a-7-a-l"},{"question":"Can a business primarily engaged in lending or investment be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-business-primarily-engaged-in-lending-or-investment-be-eligible-for-a-7-a-loan"},{"question":"What impact does a principal's recent federal tax lien have on 7(a) loan eligibility, even if paid?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-principal-s-recent-federal-tax-lien-have-on-7-a-loan-eligibility-even-i"},{"question":"How does the SBA define 'passive business' making it ineligible for a 7(a) loan, and what specific activities might trigger this?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-passive-business-making-it-ineligible-for-a-7-a-loan-and-what-spec"}],"related_terms":[{"term":"Look-Back Period","url":"https://dealroom.so/glossary/look-back-period"},{"term":"Look-back periods","url":"https://dealroom.so/glossary/look-back-periods"},{"term":"criminal history","url":"https://dealroom.so/glossary/criminal-history"},{"term":"Criminal History Disclosure","url":"https://dealroom.so/glossary/criminal-history-disclosure"},{"term":"Applicant","url":"https://dealroom.so/glossary/applicant"},{"term":"Co-applicant","url":"https://dealroom.so/glossary/co-applicant"}],"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/for-lenders/questions/what-is-the-specific-look-back-period-for-criminal-history-when-evaluating-an-applicant-s-","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."]}