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Glossary · People and paperwork

Discharge Order

In short

A discharge order is a court order that releases a debtor from personal liability for certain debts after a bankruptcy proceeding. It means creditors cannot pursue those discharged debts.

What it means in a deal

If you've had a prior bankruptcy, the SBA wants to see the discharge order to confirm that the relevant debts were legally resolved. The date of discharge is also crucial, as recent bankruptcies can still pose eligibility issues, even if debts are discharged. Provide this documentation proactively.

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.

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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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