Glossary · People and paperwork
Crime involving fraud
In short
Any criminal offense where deception is used for personal gain or to cause loss to another. This is a red flag for SBA loan eligibility and character requirements.
What it means in a deal
If you, as the buyer, or any key principal in the business, have a past conviction for fraud, it can make you ineligible for an SBA loan. The SBA checks character requirements thoroughly, including criminal history. Be upfront about any past issues, as nondisclosure 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 Crime involving fraud
- What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?
- Does a business acquisition involving an earn-out provision complicate SBA 7(a) loan approval?
- When is an Environmental Questionnaire (Form 1081) required for a 7(a) loan involving real estate?
- What constitutes a 'prudent' environmental due diligence standard for a 7(a) loan involving commercial real estate?
- Beyond Form 1919, what specific additional forms are always required for a business acquisition loan involving real estate?
- What specific due diligence is required for a 7(a) loan involving a change of ownership between related parties?
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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