Glossary · People and paperwork
In short
This refers to any outstanding debt owed to the U.S. government, such as student loans, tax liens, or prior SBA loans. Having unresolvable federal debt can disqualify you.
The SBA requires that all principals of the borrowing entity not be delinquent on any federal debt. Lenders will check various databases. If you have any outstanding federal debt, you must either resolve it or be on a payment plan in good standing before your loan can be approved.
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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