Changes to the Final Rule on Criminal Justice Reviews for SBA Loans Are In Effect, Here’s What It Means - Stone Bank
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Changes to the Final Rule on Criminal Justice Reviews for SBA Loans Are In Effect, Here’s What It Means

At Stone Bank, we recognize that the road to small business success can be a challenging journey for some. For individuals working to overcome a history of legal offenses, the ability to secure a government-guaranteed small business loan depends on criminal background reviews conducted by the Small Business Administration.

To ensure that individuals with a significant criminal background are thoroughly vetted before being granted SBA loan assistance, the Final Rule was established to outline their review criteria and procedures for program applicants.

If you have a criminal record as a small business owner, here’s how you may be affected by the Final Rule on criminal justice reviews:

KEY IMPACTS ON BUSINESS OWNERS

  • Enhanced Background Checks | Business owners with a criminal history may face additional scrutiny, which could lengthen their application process.
  • Eligibility Criteria | Certain criminal convictions, such as felony convictions related to fraud, dishonesty, or similar offenses, may render an applicant ineligible. Business owners must disclose any criminal history upfront, and failure to do so could lead to automatic disqualification.
  • Review Process | Criminal history will be reviewed by the SBA on a case-by-case basis, evaluating the nature and severity of the offense, time elapsed since conviction, and evidence of rehabilitation.
  • Impact on Loan Approval Timelines | Business owners should plan for potential delays related to additional time needed to complete criminal justice reviews. Submitting complete and accurate information can help avoid further complications.
  • Rehabilitation Considerations | The rule allows for consideration of rehabilitation and business owners who demonstrate a positive change post-conviction may have a better chance at loan approval.
  • Transparency and Fairness | By clearly defining the criteria and procedures for criminal justice reviews, the Final Rule aims to promote greater transparency and fairness for SBA loan applicants.

Read more about the SBA Notice on Criminal Justice Final Rule

RELOCATION NOTICE

Effective December 31, 2024 all Stone Bank operations in the Little Rock market will be relocated to our new branch office and headquarters building at 12615 Chenal Parkway. This includes all consumer and commercial banking functions, including commercial lending and the interactive ATM adjacent to our current Little Rock location at 900 South Shackleford. The Shackleford location will close on December 31, 2024.

All Little Rock personnel phone numbers and e-mail addresses, as well as your access to our mobile banking app and website will remain the same.

We appreciate your continued business with Stone Bank.

If you have any questions about our relocation to our new Chenal address, or the closure of the Shackleford branch, please feel free to call our Little Rock team at (501) 503-4242.

Thank you.