Glossary · People and paperwork
Conviction
In short
A conviction is a formal declaration that someone is guilty of a criminal offense. Certain criminal convictions can make you ineligible for an SBA loan, so disclosure is critical.
What it means in a deal
The SBA requires disclosure of any felony or certain misdemeanor convictions related to financial misconduct (e.g., fraud, embezzlement) within the last five years. Failure to disclose or having a disqualifying conviction will halt your loan application. Be transparent on Form 1919 to avoid issues.
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 Conviction
- What if I have a prior felony conviction on my record?
- Will a felony conviction prevent me from getting an SBA 7(a) loan?
- Will a past criminal conviction prevent me from getting an SBA 7(a) loan?
- What if an applicant business owner has a recent felony conviction that has been discharged?
- How does a past criminal conviction affect my ability to get an SBA 7(a) loan?
- Can an arrest record without conviction for a minor offense affect my SBA 7(a) loan approval?
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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