SBA loan basics
Short answer
The SBA checks your personal credit history, criminal record, and any past defaults on federal debt to determine eligibility.
As part of the eligibility review, the SBA requires lenders to assess the character of the principals. This involves reviewing personal credit reports, checking for past bankruptcies or judgments, evaluating criminal history disclosures on SBA Form 1919 (looking for specific disqualifying offenses), and verifying no defaults on previous federal loans or obligations (via systems like CAIVRS).
When you submit SBA Form 1919, the lender will use that information, along with your credit report and a federal database check, to ensure you meet the character requirements for an SBA 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.
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