Glossary · People and paperwork
Character evaluation
In short
The SBA's assessment of the buyer's (and other key principals') integrity and trustworthiness, based on credit history and background checks. Buyers care because a poor character evaluation can disqualify you from an SBA loan, regardless of the business's strength.
What it means in a deal
The SBA reviews your personal credit history, criminal records, and any past defaults on government debt. You'll complete Form 1919, disclosing relevant information. Be transparent with your lender about any issues upfront; undisclosed problems can lead to loan denial or even fraud allegations.
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 evaluation
- How long does the SBA's evaluation process typically take after my lender submits the loan package?
- 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?
- How does the SBA's 'prudent lending standards' apply to the evaluation of working capital projections for a new business acquisition?
- Are there any specific character or background checks for owners 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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.