Glossary · People and paperwork
Discharged felony conviction
In short
This refers to a felony conviction where the sentence, parole, or probation has been completed. It's critical for SBA loan eligibility, as certain past convictions can disqualify you.
What it means in a deal
If you, or any key principal, have a felony conviction, the SBA will scrutinize it. While a discharged felony isn't an automatic disqualifier, the SBA considers the nature of the crime, the time passed, and your rehabilitation. You'll need to disclose this on Form 1919 and provide all requested documentation to the lender for their review and SBA's determination.
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 Discharged felony conviction
- What if an applicant business owner has a recent felony conviction that has been discharged?
- What if I have a prior felony conviction on my record?
- Will a felony conviction prevent me from getting an SBA 7(a) loan?
- What is the specific look-back period for an owner's prior felony conviction on SBA Form 1919?
- When can a criminal record or felony conviction render a borrower ineligible for an SBA 7(a) loan?
- If I have a felony conviction from 15 years ago, am I automatically ineligible for an SBA 7(a) loan?
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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