Glossary · People and paperwork
Felony
In short
A felony is a serious crime, typically punishable by imprisonment for more than a year. Any past felony conviction, especially recent ones or those involving financial misconduct, is a major barrier to SBA loan eligibility.
What it means in a deal
The SBA requires all owners to disclose felony convictions on Form 1919. If you're currently under indictment, on probation, parole, or have a recent conviction for certain financial crimes, your application will be denied. Be honest about your history to avoid allegations of fraud.
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 Felony
- 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 if a principal has a recent criminal history that is not a felony?
- What if an applicant business owner has a recent felony conviction that has been discharged?
- 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?
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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