Glossary · People and paperwork
Character
In short
This refers to the borrower's honesty, integrity, and credit history, a critical factor for SBA loan approval. Lenders assess your willingness and ability to repay debt.
What it means in a deal
The SBA emphasizes "good character" for all principals. Lenders will scrutinize your personal credit report, criminal background, and any past federal debt. Any derogatory marks, bankruptcies, or felonies can jeopardize your loan approval. Be upfront about any issues.
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 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?
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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