Glossary · People and paperwork
In short
This is a court order that releases a debtor from personal liability for certain debts after a bankruptcy proceeding. Lenders will examine the timing and circumstances of any past discharge.
While a past bankruptcy isn't an automatic disqualifier for an SBA loan, the discharge must have occurred a sufficient time ago (typically 3-7 years, depending on the chapter) and your credit re-established. Lenders will review your personal financial statement and credit report to confirm the discharge and your subsequent financial behavior. Be ready to explain the circumstances.
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.
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