Glossary · People and paperwork
Intentional misrepresentation
In short
Intentional misrepresentation is deliberately providing false information or concealing crucial facts to deceive another party. This is a serious offense that can invalidate a deal and lead to legal action, including federal penalties.
What it means in a deal
If a seller provides false financial statements, or you as the buyer intentionally misstate your personal financial health on Form 1919, it's Intentional misrepresentation. The SBA and lenders scrutinize all disclosures, and such actions can lead to loan denial, legal penalties, or even being Debarred from federal programs.
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 Intentional misrepresentation
- What constitutes a "material misrepresentation" by a borrower that could lead to a 7(a) guaranty denial?
- What constitutes a "material misrepresentation" by a borrower that could lead to an outright 7(a) guaranty denial?
- What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?
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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