Glossary · People and paperwork
In short
Embezzlement is the fraudulent appropriation of assets entrusted to one's care. This is a severe financial crime; any history of embezzlement will prevent you from obtaining an SBA loan due to character concerns.
Embezzlement is a specific type of fraud that directly impacts financial trustworthiness. The SBA will view any past involvement as a disqualifying factor for loan eligibility, as it indicates a lack of Good character and financial integrity required of borrowers.
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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