Glossary · People and paperwork
Misdemeanor Conviction
In short
A misdemeanor conviction is a conviction for a less serious crime than a felony. Certain types of misdemeanors, particularly those involving financial fraud or moral turpitude, can affect your SBA loan eligibility.
What it means in a deal
While not automatically disqualifying like a felony, a misdemeanor conviction, especially for crimes involving fraud, embezzlement, or breach of trust, must be disclosed on SBA Form 1919. The SBA will review these on a case-by-case basis to assess your good character. Be transparent and prepared to explain the circumstances.
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 Misdemeanor Conviction
- Does a misdemeanor on my record prevent me from getting an SBA 7(a) loan?
- What if I have a prior felony conviction on my record?
- Will a felony conviction prevent me from getting an SBA 7(a) loan?
- Will a past criminal 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?
- How does a past criminal conviction affect my ability to get 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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