Glossary · People and paperwork
Parole
In short
The conditional release of a prisoner before their full sentence is served, subject to specific supervision and rules. Like probation, it impacts SBA loan eligibility.
What it means in a deal
Similar to probation, being on parole for a felony or a crime involving moral turpitude (like fraud or embezzlement) makes you ineligible for an SBA loan. The SBA requires all key principals to have "good character," and an active parole status typically disqualifies an applicant. Always be transparent about any criminal history on SBA Form 1919.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Parole
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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