Glossary · The loan itself
In short
A comprehensive evaluation method used by the SBA to determine if a borrower has "Good Character" for a loan, considering all relevant facts. It's a broad look at your background.
The SBA uses the Totality of the Circumstances Test for your Good Character determination, looking beyond isolated incidents to your overall history. This includes credit history, criminal record, and any past federal debt defaults. Full disclosure on Form 1919 is critical, as omission can lead to loan 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.
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