Glossary · People and paperwork
In short
The SBA requires a criminal background check for all owners of 20% or more of the business. Certain past convictions can make you ineligible for a 7(a) loan.
As a buyer and key principal, you will undergo an SBA-mandated criminal background check. Disclose any past legal issues early to your lender. Certain felonies, especially those involving fraud or embezzlement, will disqualify you, so transparency is key to avoiding late-stage surprises.
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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