Glossary · People and paperwork
Misdemeanor Offense
In short
A misdemeanor is a less serious crime than a felony. While it might not automatically disqualify you for an SBA loan, the SBA will scrutinize your character.
What it means in a deal
On SBA Form 1919, you must disclose any criminal offenses, including misdemeanors. The SBA evaluates 'good character' and considers the nature, recency, and severity of any offense. While a minor, non-financial misdemeanor from many years ago might be overlooked, recent or financial-related misdemeanors could be a red flag. Always disclose fully and be prepared to explain.
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 Offense
- Does a misdemeanor on my record prevent me from getting an SBA 7(a) loan?
- Can a minor past criminal offense prevent me from getting an SBA 7(a) loan?
- What constitutes a 'serious criminal offense' that may cause 7(a) loan ineligibility for a principal?
- Can an arrest record without conviction for a minor offense affect my SBA 7(a) loan approval?
- What specific types of prior criminal offenses are generally disqualifying for an SBA 7(a) loan?
- What specific types of criminal offenses are generally disqualifying for an SBA 7(a) loan applicant or owner?
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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