Glossary · People and paperwork
Character and Background Checks
In short
These are investigations into your personal history, including credit, criminal, and sometimes educational or employment records. Buyers care because lenders conduct these to assess your eligibility and trustworthiness for an SBA loan.
What it means in a deal
Every owner with 20% or more equity will undergo these checks, using forms like SBA Form 1919. Lenders look for indicators of good character, such as a strong credit report, absence of serious criminal history, and no previous federal debarments. Be prepared to provide all requested information accurately.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 and Background Checks
- Are there any specific character or background checks for owners applying for an SBA 7(a) loan?
- Does the lender need to collect separate consent forms for background checks from non-owner spouses?
- Who specifically counts as an 'associate' for SBA business size checks?
- 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?
- What basic character requirements must business owners meet when applying 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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