SBA 7(a) Q&A
Short answer
A felony conviction over 10 years old generally will not impact SBA 7(a) eligibility if you have completed the sentence, probation, or parole and demonstrate current good character.
The SBA considers an applicant's character, which includes criminal history. However, there are specific look-back periods. For non-financial felony convictions, if more than 10 years have passed since the conviction or release from incarceration, parole, or probation (whichever is later), it typically does not automatically disqualify an applicant, provided other eligibility criteria are met.
A buyer discloses a felony conviction from 15 years ago, for which they completed probation 12 years ago. As this falls outside the 10-year look-back period, it does not negatively impact their 7(a) loan eligibility, assuming all other criteria are met.
SOP 50 10 - Lender and Development Company Loan Programs
Criminal Justice Reviews for SBA Business Loan Programs - Final Rule
SBA Form 1919 - Borrower Information Form
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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