On September 15, 2023, SBA published a Proposed Rule, Criminal Justice Reviews for the SBA Business Loan Programs and Surety Bond Guaranty Program, 88 FR 63534. This proposal would amend regulations governing SBA’s business loan programs, (7(a) Loan Program, 504 Loan Program, Microloan Program, Intermediary Lending Pilot Program (ILP), Surety Bond Guarantee Program (SBG), and the Disaster Loan Program (except for the COVID Economic Injury Disaster Loan (EIDL) Disaster Loan Program) relating to criminal background reviews. For 7(a) and 504 program eligibility purposes, SBA is proposing to amend 13 CFR 120.110(n) “to remove restrictions on businesses with an Associate who is on probation, on parole, or is under indictment but not convicted of a felony or any crime involving or relating to financial misconduct or a false statement”.  As proposed, the regulation would continue to maintain the prohibition against making loans to businesses with an Associate who is currently incarcerated.