Funding situations
Owners with a record often assume the answer is no before they ask. Here is what our published checklist covers, what funders verify, and where SBA rules are different.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
Our requirements page lists every line a file is read against: time in business, personal credit score, revenue, deposits, balances, negative days and NSFs, ownership, bankruptcy or foreclosure history, existing positions and state rules. Criminal history is not one of the listed lines.
That does not mean nothing is verified. It means the decision is built mainly on how the business performs in its bank account and on the owner's credit file, not on a background check question.
| What is checked | What it means |
|---|---|
| Identity | Photo ID and personal details match the application |
| Credit | A personal credit review; 500+ is considered and 600+ opens better offers |
| Bankruptcy and defaults | Recent bankruptcy, foreclosure or a defaulted advance can block a tier |
| Ownership | Who owns the business and in what share |
| Bank activity | Real deposits, balances, negative days and existing debits |
A record can still show up indirectly. A judgment, a tax lien or a gap in credit history can affect a file, and each is read on its own terms. See funding with tax liens and funding after bankruptcy.
SBA-guaranteed loans have their own eligibility rules. Under the SBA's 2024 criminal-justice rule, a business is ineligible for 7(a) or 504 financing if an owner or other associate is currently incarcerated after being adjudicated guilty, or is under indictment for a felony or a crime involving financial misconduct or a false statement. The same rule removed probation and parole as automatic disqualifiers.
SBA policy on this has changed several times since 2023, so ask an SBA lender to confirm the current SOP and Form 1919 before you rely on it (facts as of October 2026). The private funding programs described on this site are not SBA programs and do not use Form 1919.
A landscaping owner with a conviction several years ago runs a business 4 years old with $38,000 in average monthly deposits, a 610 score and no open advances.
| Line | This file | How it reads |
|---|---|---|
| Time in business | 4 years | Clears both tiers |
| Revenue | About $456,000 a year | Clears Tier 1 revenue |
| Credit | 610 | Below Tier 1 (650), clears Tier 2 (600) |
| Criminal record | Not a listed line | Not part of the published checklist |
On these numbers the file reads against the revenue-based tier. The outcome still depends on the full statements and the funder reviewing it.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Run the qualification check, which does not affect your credit score, or apply and get a same-day answer on a complete file. Nothing here is a promise of funding.
A criminal record is not a line on our published requirements checklist. Files are read mainly on bank activity and credit. Each file is still reviewed on its own, so there is no promise either way.
Funders verify identity, credit, ownership and bankruptcy or default history. What else a specific funder reviews depends on its program.
Under the SBA's 2024 rule, current incarceration after a guilty adjudication or a pending felony or financial-crime indictment makes a business ineligible. Rules change, so confirm with an SBA lender.
Answer every question asked truthfully and completely. Do not leave out an owner or a liability.
No. Checking what you qualify for starts with a soft credit pull.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
