Glossary · People and paperwork
Felony Convictions
In short
These are convictions for serious crimes, typically punishable by imprisonment for more than a year. They are a critical disqualifier for SBA loan eligibility.
What it means in a deal
If you, or any key principal, have a Felony Conviction, it generally makes you ineligible for an SBA loan, with very limited exceptions. The SBA will conduct Background Checks to uncover any such convictions. It's crucial to disclose any past legal issues upfront to your lender, as non-disclosure will lead to an immediate denial.
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 Convictions
- 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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