SBA loan basics
Short answer
It depends on the nature and recency of the offense. Certain types of criminal records, especially recent felonies, can disqualify you, but older, minor offenses may not automatically prevent approval.
Applicants must disclose all criminal history on SBA Form 1919. The SBA reviews this information. Generally, a felony conviction within the last five years (or during parole/probation) or being subject to a felony indictment, criminal information, or other means by which formal criminal charges are brought, will make an applicant ineligible. Older, minor offenses are typically evaluated on a case-by-case basis.
An applicant with a misdemeanor conviction for petty theft from 20 years ago, with no other incidents since, would likely not be disqualified. However, an applicant with a felony fraud conviction from three years ago would be ineligible.
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.
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