Glossary · People and paperwork
Character Assessment
In short
The SBA and lenders evaluate your honesty and integrity. They look at your credit history, criminal record, and general reputation to determine if you're a trustworthy borrower.
What it means in a deal
Lenders will scrutinize your personal history, including any bankruptcies, felonies, or even significant derogatory marks on your credit report. Disclose everything upfront. Any red flags here can kill your SBA loan application, regardless of the business's strength.
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 Character Assessment
- 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?
- Is an environmental assessment always necessary for real estate acquired with an SBA 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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