Glossary · People and paperwork
Background check
In short
This is a review of your criminal and civil history. It's a mandatory part of the SBA loan process for all owners and key principals.
What it means in a deal
As part of the character review, all owners of 20% or more must undergo a background check. This screens for felonies, fraud, embezzlement, or other serious offenses that could disqualify you from an SBA loan. Be upfront with your lender about any past issues, as undisclosed information will likely surface and cause deal delays or rejection.
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 Background check
- What kind of records does the SBA check about my personal background?
- Does the SBA check my personal background, like criminal history, for a loan?
- When is a lender required to conduct a criminal background check for non-owner managers or key employees of an applicant business?
- Does the lender need to collect separate consent forms for background checks from non-owner spouses?
- Are there any specific character or background checks for owners applying for an SBA 7(a) loan?
- Does the SBA check my personal credit score directly when I apply?
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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