Glossary · People and paperwork
In short
Intentionally deceiving a bank for financial gain. If you or the seller have a history of bank fraud, it's a major red flag for the SBA and will likely disqualify the loan.
The SBA heavily scrutinizes the character of both borrowers and sellers. Any past convictions or even allegations of bank fraud can lead to an immediate denial of your 7(a) loan application, regardless of the business's strength. Ensure full disclosure upfront to avoid wasting time.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day