SBA loan basics
Short answer
It depends on the nature and recency of the offense; certain felonies or current legal statuses like probation can lead to disqualification.
Applicants must disclose criminal history on SBA Form 1919. The SBA generally deems individuals ineligible if they are currently incarcerated, on probation, or parole for certain offenses. Recent felony convictions, particularly those involving fraud or financial misconduct, can be disqualifying. Minor offenses or older, non-financial convictions may be reviewed on a case-by-case basis, with the lender assessing rehabilitation and character.
An applicant recently released from prison for a fraud felony would be ineligible. However, an applicant with a 20-year-old misdemeanor DUI conviction, who has maintained a clean record since, might still be considered for an SBA 7(a) 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
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
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