Glossary · People and paperwork
In short
Intentional deception by the borrower to obtain an SBA loan or avoid repayment. This is a federal crime with severe penalties and causes the SBA to deny its guaranty.
Any deliberate act to falsify information, hide material facts, or misuse loan funds constitutes borrower fraud. This will lead to the lender calling the loan, the SBA denying its guaranty, and potential criminal prosecution. Ensure all financial statements and representations are truthful and complete.
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.
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