Glossary · People and paperwork
Moral turpitude
In short
Conduct that is considered contrary to community standards of justice, honesty, or good morals. SBA considers convictions for crimes involving moral turpitude when assessing a borrower's character and loan eligibility.
What it means in a deal
Convictions for offenses like fraud, embezzlement, or serious violent crimes are typically considered crimes of moral turpitude. If you or any key principal has such a conviction, it can disqualify you from getting an SBA loan. The SBA requires full disclosure on Form 1919 and will investigate.
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
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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