For SBA lenders
Short answer
Lenders verify criminal history certifications by performing background checks on all principals and cross-referencing against the information provided on SBA Form 1919, documenting any discrepancies or disclosures.
SBA Form 1919 requires borrowers to certify regarding criminal history. Lenders must take reasonable steps to verify this information through background checks (e.g., criminal records search). Any adverse information must be disclosed to the SBA, and the lender must determine if the applicant is still eligible under current rules.
For a $750,000 7(a) loan, the lender receives Form 1919 where the borrower certifies no felony convictions. The lender conducts a third-party background check which confirms no adverse criminal history. If a past misdemeanor was found, the lender would document the discrepancy, request a written explanation from the borrower, and assess if it impacts eligibility.
SBA Form 1919 - Borrower Information Form
SOP 50 10 - Lender and Development Company Loan Programs
Criminal Justice Reviews for SBA Business Loan Programs - Final Rule
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on required forms (1919, etc.)
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