Can you get an SBA loan after bankruptcy?
Short answer
Possibly. Bankruptcy is not an ineligible category in 13 CFR § 120.110 or SOP 50 10 8.1, Sec. A, Ch. 1, Para. E. Lenders must weigh it, and on SBA Express loans how much to factor it in is left to the lender's business judgment.
Possibly. Neither 13 CFR § 120.110 nor SOP 50 10 8.1, Sec. A, Ch. 1, Para. E lists bankruptcy as an ineligible category. The issue is how it affects your credit.
Form 1919
Question 1 asks whether the applicant or any Associate is presently involved in any bankruptcy. A yes requires details in a separate attachment.
Lender analysis
On Standard 7(a) loans, the credit memo must discuss any liens, judgments, bankruptcy filings or pending litigation (Sec. B, Ch. 1, Para. C.2). On SBA Express loans, how much to factor in a past bankruptcy is left to the lender's business judgment. See Sec. B, Ch. 2, Para. C.2. Policies vary by lender.
When a bankruptcy touches federal debt
If a federal loan was discharged in bankruptcy, the discharged amount counts as a loss under the Prior Loss rule. That loss must be fully satisfied, or waived, before a new loan.
Under the Delinquent Federal Debt rule, a debt in or discharged in bankruptcy is not delinquent if you are current on any court plan. The SOP notes that if there was a loss on the debt, the Prior Loss rule still applies.
The credit test
SBA's standard is the same either way. The loan must be sound enough to reasonably assure repayment (13 CFR § 120.150).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.