Glossary · People and paperwork
Felony Conviction(Felony)
In short
A conviction for a serious crime. For SBA loans, any Felony Conviction, or even an indictment, for you or any Principal can make you ineligible for the loan. This is a critical character eligibility requirement.
What it means in a deal
The SBA is strict on character. You and all Principals must disclose any Felony Conviction or indictment on SBA Form 1919. Nondisclosure or a recent conviction will lead to a loan denial. Ensure all involved parties are transparent and eligible before committing to a deal.
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
Common questions about Felony Conviction
- 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 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?
- 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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