Glossary · People and paperwork
Character requirement
In short
The SBA assesses your personal character, including your credit history and any criminal record, to determine if you are a responsible borrower. Good character is essential for loan eligibility.
What it means in a deal
Lenders will pull your personal credit report and ask about any prior bankruptcies, foreclosures, or criminal offenses on Form 1919. Be transparent. Minor issues might be overcome with a compelling explanation, but serious past issues like fraud or felony convictions usually lead to disqualification.
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 requirement
- What basic character requirements must business owners meet when applying for an SBA 7(a) loan?
- What are the basic character requirements for business owners applying for an SBA 7(a) loan?
- How does a lender assess 'good character' for all principals on a 7(a) loan application?
- 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 "insurable interest" always a legal requirement for obtaining business life insurance?
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.