SBA loan basics
Short answer
A felony conviction does not automatically prevent you from getting an SBA 7(a) loan, but it requires a thorough review and may impact eligibility depending on the nature and recency of the conviction.
The SBA performs a character determination. Certain criminal offenses, particularly those involving fraud or financial misconduct, can make an applicant ineligible. However, many past convictions, especially if old and unrelated to financial integrity, may be overcome with proper disclosure and explanation.
An applicant with a 20-year-old felony conviction for assault might still be eligible if they demonstrate good character and business acumen since then. An applicant with a recent fraud conviction would likely be ineligible.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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