Glossary · People and paperwork
In short
A deferred prosecution agreement means someone involved in the loan application admitted to a crime but avoids conviction by meeting conditions. The SBA views this seriously, potentially impacting loan eligibility if a key principal is involved.
The SBA's Form 1919 asks about criminal history, including deferred prosecutions. If a key principal has one, it triggers a character review by the SBA. You'll need to provide full details and potentially wait for SBA approval, which can delay or even derail the loan.
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
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