SBA loan basics
Short answer
It depends on the nature and recency of the criminal record. Certain felonies, especially those involving fraud or financial misconduct, can make you ineligible, while minor or distant offenses might not.
The SBA requires applicants to disclose criminal history, and certain offenses, particularly those involving financial fraud, false statements, or felonies within the last five years, can result in ineligibility. The SBA reviews the specific circumstances and nature of the crime.
An applicant with a felony conviction for embezzlement five years ago would likely be ineligible. However, an applicant with a minor misdemeanor from 15 years ago, with a clean record since, might still qualify.
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 2026-06-13. 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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