Glossary · Reading the business
Unresolved judgment
In short
A court decision against an individual or business that hasn't been paid or satisfied. This indicates a past legal financial obligation that remains outstanding.
What it means in a deal
An unresolved judgment against you, any Key Principal, or the business itself is a significant red flag for an SBA loan. Lenders will uncover these during due diligence and personal financial statement review. You'll need to satisfy or resolve any such judgments before loan closing, as they impact your creditworthiness and eligibility.
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
Common questions about Unresolved judgment
- What if the business I want to buy has pending litigation or unresolved legal claims?
- Can an unresolved dispute between me and the seller prevent SBA 7(a) loan approval?
- What if the business I'm acquiring has pending tax audits or unresolved tax issues?
- Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?
- What if my personal credit report shows a judgment that has been satisfied or paid off?
- 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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