Glossary · People and paperwork
Debarment
In short
This is a severe penalty where an individual or business is excluded from participating in federal government contracts, loans, or other programs. Being debarred means you cannot obtain an SBA loan.
What it means in a deal
The SBA requires all borrowers and key principals to confirm they are not debarred from federal programs. If you or any key person involved in the acquisition is debarred, your SBA loan application will be denied. Ensure thorough checks are performed on all parties involved with the loan application.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
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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