Glossary · Reading the business
In short
Bankruptcy is a legal process for individuals or businesses unable to repay their debts. For a buyer, recent personal bankruptcy can severely impact your eligibility for an SBA loan, making funding difficult or impossible.
The SBA requires you to disclose any bankruptcy filings on Form 1919. If you've had a personal bankruptcy in the last 10 years, especially if it resulted in a loss to the government, it's a major red flag and usually disqualifies you. Be completely upfront about any past filings.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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.
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