Glossary · People and paperwork
Supervised Release
In short
This is a period of community supervision that follows a prison sentence, similar to parole. Being on supervised release makes you ineligible for an SBA loan.
What it means in a deal
The SBA considers individuals currently on probation, parole, or supervised release for a serious criminal offense to be ineligible for a 7(a) loan. This is a hard stop. You must have completed your full sentence and supervision period before applying. Disclose this information truthfully 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 Supervised Release
- When can a lender release collateral on a 7(a) loan without obtaining prior SBA approval?
- Can a lender release a personal guarantor without SBA approval if collateral fully covers the loan?
- Is it possible to request a release for a personal guarantor before the SBA loan is fully repaid?
- What are the SBA's requirements for a lender to release a personal guarantor from a 7(a) loan?
- What are the specific requirements for a lender to release collateral on a 7(a) loan during its term?
- When can a lender release its lien on specific business assets during the life of an SBA 7(a) loan?
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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