Glossary · People and paperwork
In short
A formal accusation by a grand jury that there is enough evidence to bring criminal charges against an individual for a serious crime. For a buyer, this is a major red flag for loan eligibility.
If you or any Key Principal has a felony indictment, it will likely make you ineligible for an SBA loan. The SBA requires a "Good Character" assessment, and an indictment usually indicates a serious character issue. You must disclose this on SBA Form 1919.
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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