Glossary · People and paperwork
In short
This is a legal process where an individual's assets are liquidated to pay off debts, and most remaining debts are discharged. It signifies a complete financial fresh start.
A prior Chapter 7 personal bankruptcy can significantly impact your eligibility for an SBA loan. The SBA reviews your credit history, including any bankruptcies, to assess your character and repayment capacity. If you have a prior bankruptcy, discuss the details with your lender early to understand potential impacts and any seasoning requirements.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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