Glossary · People and paperwork
In short
These are convictions for serious crimes, typically punishable by imprisonment for more than a year. They are a critical disqualifier for SBA loan eligibility.
If you, or any key principal, have a Felony Conviction, it generally makes you ineligible for an SBA loan, with very limited exceptions. The SBA will conduct Background Checks to uncover any such convictions. It's crucial to disclose any past legal issues upfront to your lender, as non-disclosure will lead to an immediate denial.
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
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