SBA loan basics
Short answer
No, a past criminal record does not automatically disqualify you for an SBA 7(a) loan, but the SBA will review the nature of the crime, its recency, and your rehabilitation.
The SBA evaluates an applicant's character, which includes reviewing criminal history. Certain felonies or crimes involving fraud, dishonesty, or money laundering within the last five years are typically disqualifying. However, if the crime was minor, occurred long ago, or if the applicant can demonstrate rehabilitation, approval may still be possible.
An applicant has a misdemeanor conviction for shoplifting 15 years ago, with no other incidents since. This would likely not prevent them from getting an SBA 7(a) loan, as it's an old, minor offense. However, a recent felony fraud conviction would be a definite disqualifier.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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.
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