Glossary · People and paperwork
In short
This refers to offenses like embezzlement, bribery, or fraud. If a key principal has such a crime on their record, it's a major red flag for the SBA and can prevent loan approval.
The SBA scrutinizes the character of all key principals. Any conviction, plea, or even a deferred prosecution for a crime involving fraud or dishonesty typically makes a borrower ineligible for an SBA loan. Be upfront and disclose everything asked on Form 1919 to avoid an automatic denial.
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.
Know what you'll need before you apply
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