For SBA lenders
Short answer
Applicants currently incarcerated, on probation, parole, or who have been convicted of a felony involving fraud, dishonesty, or breach of trust within the last five years, are generally ineligible.
The SBA has specific regulations regarding criminal history to prevent individuals with certain serious offenses from accessing federal loan programs. This involves reviewing the applicant's record and certifications on Form 1919 regarding arrest records, charges, convictions, probation, or parole.
An applicant for an SBA loan indicates on Form 1919 that they were convicted of wire fraud three years ago and are currently on parole. This would likely make them ineligible for an SBA 7(a) loan due to the nature and recency of the conviction and their current parole status.
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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