Glossary · People and paperwork
Character review
In short
This is the lender's assessment of your integrity, honesty, and trustworthiness. It's a subjective but critical part of the SBA loan approval process.
What it means in a deal
The SBA requires lenders to assess the character of all principals. This involves reviewing your credit history, background check results, and responses on Form 1919 regarding any past legal or financial issues. Be transparent and provide complete explanations for any potential red flags to build trust with the lender.
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 review
- 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?
- What is the typical timeframe for SBA loan application review by the lender?
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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