# Can you get an SBA loan if you owe back taxes?

**Short answer:** It is a problem. Applicants certify they are current on federal, state and local taxes. A business that has not filed required federal returns is ineligible. Whether an IRS payment plan satisfies this is not stated. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.

Canonical page: https://www.sbaexpress.loans/answers/can-you-get-an-sba-loan-if-you-owe-back-taxes/
Last checked: 2026-11-09

Unpaid taxes can stop a loan even though they are not a Prior Loss. Several SBA requirements apply.

## Filing

If an applicant has not filed required federal tax returns, it is not eligible. See SOP 50 10 8.1, Sec. A, Ch. 5, Para. B, p. 95.

## Being current

On Form 1919, the applicant certifies it is current on all federal, state and local taxes. That includes income, payroll, real estate and sales taxes. Sec. B, Ch. 6, Para. D.8 requires the same certification before disbursement.

## What the loan cannot pay

Proceeds cannot pay past-due payroll, sales or similar taxes held in trust for a government (13 CFR § 120.130(e)). Delinquent business income taxes may be paid only with an approved IRS payment arrangement on which you are current. See Sec. A, Ch. 3, Para. B.

## Not a Prior Loss

The SOP says loss does not include unpaid or delinquent taxes. The Delinquent Federal Debt rule covers nontax debt only.

## What is not stated

SBA's text does not say whether an applicant on an IRS installment plan meets the Form 1919 certification. Ask your lender before you apply. The lender must generally obtain IRS tax transcripts and reconcile them against your financial data. On SBA Express and Export Express loans, the lender may skip reconciliation only if it does not use business financial information (Sec. A, Ch. 5, Para. B.4.g).

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. B (p. 95)](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. 6, Para. D.8 (about pp. 213-214)](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 § 120.130(e)](https://www.ecfr.gov/current/title-13/section-120.130)
- [SOP 50 10 8.1, Sec. A, Ch. 3, Para. B (p. 53)](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. A, Ch. 1, Para. E, Prior Loss and Delinquent Federal Debt (about pp. 24-25)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)