Glossary · People and paperwork
In short
A current indictment means formal charges have been filed against an individual for a crime. If a key principal is currently under indictment, the SBA will not approve a loan until the charges are resolved.
The SBA requires all key principals to be of good character. An open indictment means the SBA cannot make a character determination. The loan process will halt until the legal matter is fully resolved, and even then, the outcome could still jeopardize eligibility if it leads to a conviction.
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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