Glossary · People and paperwork
In short
This refers to individuals with certain past issues, like federal loan defaults, felonies, or fraud, that prevent them from getting an SBA loan. The SBA checks all key principals.
All owners of 20% or more, officers, directors, and managing members must complete SBA Form 1919 and undergo a character check. If you, or anyone else involved, is deemed a disqualified person, the loan cannot proceed.
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