Glossary · People and paperwork
Chapter 11 Bankruptcy
In short
Chapter 11 bankruptcy is a form of bankruptcy that allows a business or individual to reorganize their debts while continuing operations. It's a court-supervised repayment plan.
What it means in a deal
If you or the target business has filed Chapter 11, it's a significant factor for SBA eligibility. The SBA may require the bankruptcy to be fully discharged or dismissed before approving a loan. Provide all court documents and a clear explanation of the outcome.
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 Chapter 11 Bankruptcy
- Will a past bankruptcy (e.g., Chapter 7 discharged 5 years ago) automatically disqualify me from an SBA 7(a) loan?
- What if I have declared personal bankruptcy in the past?
- How does a prior personal bankruptcy impact SBA 7(a) loan eligibility?
- Can a past bankruptcy prevent me from getting an SBA 7(a) loan?
- Does a past bankruptcy prevent me from getting an SBA 7(a) loan?
- How does having a past personal bankruptcy that has been discharged affect my eligibility?
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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