Glossary · People and paperwork
Borrower Character
In short
This refers to your honesty, integrity, and reliability as assessed by the lender. It's a subjective but crucial factor in getting an SBA loan approved.
What it means in a deal
The SBA requires borrowers to demonstrate good character. This involves reviewing your credit history, criminal record (if any), and any past defaults on government-backed loans. Be prepared to explain any past issues transparently, as your character is a key C of credit.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Borrower Character
- What basic character requirements must business owners meet when applying for an SBA 7(a) loan?
- How does a lender assess 'good character' for all principals on a 7(a) loan application?
- What are the basic character requirements for business owners applying for an SBA 7(a) loan?
- Are there any specific character or background checks for owners applying for an SBA 7(a) loan?
- What types of non-financial character issues (e.g., past legal disputes not criminal) might disqualify me for an SBA 7(a) loan?
- What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?
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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