Glossary · People and paperwork
In short
A serious criminal conviction that makes you ineligible for an SBA loan. The SBA checks the background of all owners, so this matters for every key principal.
If you or any 20%+ owner has certain felony convictions, especially those involving financial fraud or a crime of moral turpitude within the last two years, the SBA will deny the loan. Be upfront with your lender about any past issues; they'll find out during the credit check and Form 1919 review.
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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