Skip to main content

Glossary · People and paperwork

Indictment

In short

An indictment is a formal accusation by a grand jury that there is enough evidence to bring criminal charges. If you or a key principal face an indictment, it impacts your eligibility for an SBA loan.

What it means in a deal

SBA requires good character from all key principals. An indictment for a felony or a crime involving moral turpitude will make you ineligible for an SBA 7(a) loan until the matter is resolved. You must disclose any such history on SBA Form 1919; failure to do so is a serious issue.

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.

← Browse all glossary terms

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.

Know what you'll need before you apply

Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.

Free · No documents · Usually same-day

Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.

Scroll