# 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.

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Last checked: 2026-11-08

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).

## Sources

- [13 CFR § 120.110](https://www.ecfr.gov/current/title-13/section-120.110)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E (p. 18)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Form 1919 (02/2025)](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)
- [SOP 50 10 8.1, Sec. B, Ch. 1, Para. C.2 (about p. 121)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. C.2 (about p. 133)](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 § 120.150](https://www.ecfr.gov/current/title-13/section-120.150)