SBA 7(a) Q&A
Short answer
A discharged personal bankruptcy from five years ago will be closely reviewed but does not automatically make you ineligible for an SBA 7(a) acquisition loan, especially if you have re-established good credit.
The SBA and its lenders consider an applicant's credit history and character. While a bankruptcy is a significant event, if it's discharged and sufficiently aged (typically 3-5 years post-discharge), and you can demonstrate re-established good credit and explain the circumstances, it may not be a disqualifier. The lender will assess your post-bankruptcy financial responsibility, the cause of the bankruptcy, and the strength of your current financial position and business plan.
If you had a personal bankruptcy discharged five years ago due to unforeseen medical expenses, and since then you've maintained a credit score of 680+ with no new delinquencies, you could still be eligible for a $700,000 SBA 7(a) acquisition loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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