# Can someone on probation or parole get an SBA loan?

**Short answer:** Possibly. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E says a business owned by someone on parole or probation may be eligible. If the business depends primarily on that person, the applicant must give the lender a plan for continued operations if the person is reincarcerated.

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Last checked: 2026-11-08

It is possible. A business owned by someone currently on parole or probation may be eligible. That is SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.

## The continuity plan

If the success of the business depends primarily on that person, the applicant must give the lender a plan. The plan covers how the business would keep operating if the person is reincarcerated.

## Extra guaranty

The lender should consider whether it would be prudent to require another person to provide a full or limited guaranty. The SOP frames this as protecting SBA's and the lender's interests.

## The status test still applies

Parole or probation is treated differently from being incarcerated, serving a sentence of imprisonment or being under indictment. Those three make a business ineligible under 13 CFR § 120.110(n). Form 1919, question 4 uses the regulation's words. Ask your attorney if you are unsure which status you have.

## Recent convictions

Form 1919 also asks you to certify about convictions in the last three years for offenses listed in SBA's debarment regulations. If you cannot certify, you need a written statement of exception from SBA.

## Lender judgment

SBA's rule makes the loan possible, but it does not require a lender to make it. Lender policies on these files vary.

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Associates (about p. 23)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.110(n)](https://www.ecfr.gov/current/title-13/section-120.110)
- [SBA Form 1919 (02/2025)](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)