{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-types-of-criminal-history-might-make-me-ineligible-for-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/what-types-of-criminal-history-might-make-me-ineligible-for-an-sba-7-a-loan","question":"What types of criminal history might make me ineligible for an SBA 7(a) loan?","topic":"Eligibility & background","audience":"new","bot_mode":"buyer","short_answer":"Certain types of criminal history, specifically felony convictions, especially those involving financial impropriety or fraud, can make an applicant ineligible for an SBA 7(a) loan.","rule":"The SBA requires applicants to disclose criminal history on Form 1919. A felony conviction, particularly within the last five years, or any felony conviction involving fraud, dishonesty, or a breach of trust, may render an applicant ineligible. The SBA reviews these on a case-by-case basis.","example":"An applicant with a felony conviction for embezzlement five years ago would likely be ineligible. However, an applicant with a minor misdemeanor from ten years ago, unrelated to financial crimes, might still qualify.","what_lenders_check":"Lenders must collect accurate criminal history information from all owners and verify it. Any disclosures trigger a mandatory review by the SBA, which can delay or prevent loan approval, depending on the severity and recency of the offense.","required_facts":["Felony convictions","Financial crimes","Last 5 years","SBA Form 1919","Case-by-case review"],"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":"Does the SBA check my personal background, like criminal history, for a loan?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-my-personal-background-like-criminal-history-for-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":"criminal history","url":"https://dealroom.so/glossary/criminal-history"},{"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"}],"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-loans/basics/what-types-of-criminal-history-might-make-me-ineligible-for-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."]}