Glossary · People and paperwork
Good character
In short
Good character refers to the borrower's honesty, integrity, and financial track record, which lenders assess to determine creditworthiness and reliability.
What it means in a deal
The SBA requires all principals of the borrowing entity to demonstrate good character. This involves reviewing your credit report, criminal history, and any past bankruptcies or defaults on government debt. Any red flags here can derail your SBA 7(a) loan application. Be transparent with your lender early on.
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 Good character
- How does a lender assess 'good character' for all principals on a 7(a) loan application?
- Do I need good personal credit to qualify for an SBA 7(a) loan?
- What basic character requirements must business owners meet when applying for an SBA 7(a) loan?
- What are the basic character requirements for business owners applying for an SBA 7(a) loan?
- Are there any specific character or background checks for owners applying for an SBA 7(a) loan?
- What if my personal debt-to-income ratio is high, even with a good credit score?
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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