SBA Loans Limitations Based on Criminal History
Can I apply for an SBA Loan if I have a criminal history?
One of the questions that we have received during the last couple of weeks is whether a person with a criminal history can apply for an SBA loan. The answer is…it depends. It depends on the nature of the criminal offense.
What will disqualify me from applying for an SBA loan?
When it comes to criminal history, the following will disqualify a company and make it ineligible for SBA assistance.
If an owner of the company (who owns 20% or more) answers YES to any of the following questions taken from the SBA application, then the company is NOT eligible to apply for SBA assistance:
- Are you currently incarcerated?
- Have you been adjudicated for a felony in the preceding 5 years? This includes
- Felony conviction;
- Plea of guilty to a felony offense;
- Plea of nolo contendere (no contest) to a felony;
- Participating in a pre-trial diversion program for a felony offense;
- Probation or Deferred Adjudication for a felony offense.
- Are you currently on probation for a felony or a misdemeanor?
- Are you currently on parole?
- Are there pending criminal charges against you that have not yet been adjudicated (felony or misdemeanor)?
*NOTE: If a 20% (or more) owner answers YES to any of those questions, then the company will not even be able to complete its application for SBA assistance.
Please be reminded that it is a federal offense to falsify a loan application, so please don’t do that.
Hope this helps
Credit bhwlawfirm.com
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*** All files are subject to full underwriting & qualifications specified by each bank. There can be no assurance that any applicant will be approved and that credit will be offered.***