Glossary · People and paperwork
Arrest
In short
An arrest means someone was taken into custody for a suspected crime. While an arrest alone isn't an automatic disqualifier for an SBA loan, the SBA will require details to assess the nature and disposition of the charge.
What it means in a deal
Form 1919 asks about arrests for certain crimes. If a key principal has an arrest record, especially for a felony or a crime involving fraud, you must provide full documentation of the event and its outcome. The SBA will review this as part of its character determination, so transparency is key.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Arrest
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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