Glossary · People and paperwork
Federal Debt Information
In short
This refers to your obligation to disclose any outstanding debt owed to the U.S. government, such as student loans or prior SBA loans. Delinquent federal debt can make you ineligible.
What it means in a deal
As part of your SBA loan application, you'll provide your Social Security Number for the SBA to check for delinquent federal debt, including tax liens, student loans, or previous defaulted SBA loans. Any significant delinquent federal debt will likely lead to an automatic denial of your 7(a) loan application. Clear these debts beforehand.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Federal Debt Information
- Can a business owner with delinquent federal debt still be eligible for a 7(a) loan?
- Can I get an SBA 7(a) loan if I have defaulted on a previous federal debt?
- What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?
- What happens if a buyer has defaulted on a previous federal debt, like a student loan or a prior SBA loan?
- How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?
- How does the lender determine if a prior federal debt delinquency or default (e.g., student loan, tax lien) impacts 7(a) loan eligibility?
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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