Glossary · People and paperwork
Character Check
In short
This is the SBA's evaluation of the borrower's background and honesty, including credit history and any criminal record, to assess their trustworthiness.
What it means in a deal
The SBA performs a Character Check on all key principals, looking for issues like past bankruptcies, tax liens, or criminal convictions. You'll complete SBA Form 1919 and submit to a credit report review. Derogatory marks can jeopardize your eligibility, so be transparent with your lender early on.
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 Check
- Are there any specific character or background checks for owners applying for an SBA 7(a) loan?
- Does the SBA check my personal credit score directly when I apply?
- 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?
- How does a lender assess 'good character' for all principals on a 7(a) loan application?
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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