SBA loan basics
Short answer
It depends on the nature and recency of the offense. Certain criminal histories, especially felony convictions or current indictments, can render an applicant ineligible, while minor past offenses might not be a disqualifier.
Applicants must disclose criminal history on SBA Form 1919. The SBA generally renders individuals ineligible if they are currently incarcerated, on parole or probation, or have been convicted of a felony involving fraud, dishonesty, or breach of trust, or a crime against a minor, within the last five years. Other offenses are reviewed on a case-by-case basis.
If an applicant was convicted of a minor misdemeanor for shoplifting 15 years ago, it is unlikely to prevent them from getting an SBA 7(a) loan. However, a felony conviction for embezzlement five years ago would likely result in ineligibility.
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
Criminal Justice Reviews for SBA Business Loan Programs - Final Rule
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.
More on eligibility & criminal history
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