For SBA lenders
Short answer
Non-felony criminal history must be disclosed on SBA Form 1919 and may still impact eligibility, depending on the nature of the offense and the recency.
While certain felony convictions automatically render an applicant ineligible, non-felony offenses, particularly those involving fraud, dishonesty, or breach of trust, must be disclosed. The SBA reviews these on a case-by-case basis. Recent convictions or those demonstrating a lack of good character may still lead to ineligibility, even if they are misdemeanors.
An applicant discloses a misdemeanor conviction for petty theft from five years ago. The lender would review the specifics, determine if it involves fraud or dishonesty, and assess its recency. If it's an isolated incident and the applicant demonstrates rehabilitation, it may not impact eligibility, but it requires full disclosure and review.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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.
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