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Glossary · People and paperwork

Restitution

In short

Financial compensation ordered by a court to victims of a crime. Unpaid restitution from the buyer or seller can hinder loan approval.

What it means in a deal

The SBA requires a "good character" assessment for all key principals. If you or the seller have outstanding court-ordered restitution, especially related to financial crimes, your 7(a) loan application will likely be denied. Lenders will check your credit report and criminal history.

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.

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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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