SBA 7(a) – Six Character Questions

SBA 7(a) – Six Character Questions.

Here’s what you need to know about the character fitness questions on the Small Business Administration 7(a) loan.

There’s six of them. Three are focused on criminal conduct and three cover other factors which will be discussed below.

The first of three criminal related question seeks to know if you are presently subject to an indictment, criminal processing or a criminal investigation. If you are subject to these criminal related statuses, then you are ineligible for the SBA 7(a) loan.

The second question is about arrests. If you have been arrested in in the past 6 months well, you have a uphill challenge but not entirely ineligible. You’ll be subject to the lender’s background check investigation into your character fitness.

The third question is like the first, but asks if you have ever been convicted, found guilty, plead nolo contendere or on parole. Again, like question two, you aren’t ineligible, but subject to a criminal background check for character fitness.

Question four wants to know if you have previously applied for an SBA loan program. We believe many businesses in existence during the Covid-19 pandemic will likely answer yes because many businesses applied for the Paycheck Protection Program.

Question five is if you have been determined to be ineligible for the SBA loan 7(a) loan by a federal agency.  

Lastly, question six is about child support payments you may have. If you are 50% or greater of the business intended to benefit from the 7(a) loan, you should strive to be update with your child support payments otherwise you can into some challenges with the lender approving your loan.

Failing question four, five and six does not disqualify you. But, it will slow down the process and reduce – not eliminate – the chance of a successful 7(a) SBA loan application. This is where working with DW Capital Advisors, LLC can really provide you tremendous benefit as we can assist you through the process and present the best version of yourself.

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DW Capital Advisors, LLC, based in Boston, Massachusetts, serves clients across the great nation of America. Our mission is to help individuals and small to medium sized businesses access all the benefits offered by U.S. Small Business Administration capital lending programs. If you are looking to start, acquire or expand a business, then consider the capital sources available through the SBA programs. Versed in the SBA lending requirements and guidelines, and with our access to a network of banks and advisors, DW Capital Advisors prides itself on the breadth, depth and quality of service we provide to clients.

Disclosure statement: The information provided in this post should not be relied upon to make a decision. DW Capital Advisors, LLC makes no representation as to the accuracy or completeness of the information provided.   This post is subject to our Terms of Use.