For SBA lenders
Short answer
The "Statement of Personal History" section on Form 1919 is critical for assessing the character eligibility of all principals, specifically addressing criminal history, prior defaults on government debt, and other factors that could deem an applicant ineligible.
The SBA requires a "good character" assessment for all loan applicants. The personal history questions on Form 1919 directly address this by asking about criminal convictions, current indictments, previous bankruptcies, and defaults on federal loans. Affirmative answers often trigger further review or potential ineligibility.
If a principal checks "Yes" to a question about a past felony conviction, the lender must follow SBA guidance, which may include obtaining court documents, a personal statement from the applicant, and potentially submitting the case to the SBA's Office of Financial Assistance for a character determination.
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 2026-06-13. 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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