Glossary · People and paperwork
In short
Any criminal offense where deception is used for personal gain or to cause loss to another. This is a red flag for SBA loan eligibility and character requirements.
If you, as the buyer, or any key principal in the business, have a past conviction for fraud, it can make you ineligible for an SBA loan. The SBA checks character requirements thoroughly, including criminal history. Be upfront about any past issues, as nondisclosure can lead to loan denial or even fraud allegations.
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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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.
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