Glossary · People and paperwork
Personal judgment
In short
A court order declaring that one person owes another person money. This can significantly impact an individual's creditworthiness and ability to secure a loan.
What it means in a deal
A personal judgment against you or the seller can indicate financial instability and will be a major concern for an SBA lender. The lender will require these to be satisfied before loan closing. Ensure your personal financial statements and credit reports are clean well before applying for an SBA loan.
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 Personal judgment
- What if my personal credit report shows a judgment that has been satisfied or paid off?
- Will an outstanding personal judgment (e.g., from a civil lawsuit) prevent me from getting an SBA 7(a) loan?
- Will a satisfied judgment on my personal credit report, even if paid, negatively impact my SBA 7(a) loan approval?
- Can I still get an SBA 7(a) loan if I have a recent personal judgment against me, even if it's small?
- Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?
- Will a past tax lien or judgment on my credit report prevent SBA 7(a) loan approval?
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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