For SBA lenders
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.
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.
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.
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
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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