SBA loan basics
Short answer
Yes, the SBA requires a personal background check, including criminal history, for all owners of 20% or more of the applicant business.
The SBA conducts a character evaluation for all principal owners to ensure they meet eligibility standards. Certain criminal offenses, particularly those involving fraud, dishonesty, or federal crimes, can disqualify an applicant. Applicants must disclose their criminal history on SBA Form 1919.
An applicant discloses a past felony conviction from 15 years ago on Form 1919. The SBA reviews this information to determine if it impacts eligibility based on the nature of the crime and its recency.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SBA Form 1919 - Borrower Information Form
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.
More on eligibility & background
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day