Glossary · People and paperwork
Civil Litigation
In short
This refers to lawsuits between private parties, often concerning contract disputes or personal injury. Past or ongoing civil litigation against you or the business can impact loan eligibility or reveal hidden risks.
What it means in a deal
The SBA Form 1919 requires disclosure of any past or present civil litigation against you or the business. Significant or unresolved lawsuits can be an automatic disqualifier or raise red flags for the lender, indicating potential financial instability or character concerns. Thorough due diligence includes reviewing the business's litigation history.
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 Civil Litigation
- How do past civil litigation or judgments impact my SBA 7(a) loan approval?
- What if the business I'm acquiring has existing litigation or legal disputes?
- What if the business I'm buying has existing legal disputes or pending litigation?
- What if the business I want to buy has pending litigation or unresolved legal claims?
- Does a pending civil lawsuit against me personally affect SBA 7(a) loan approval?
- Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?
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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