For security clearance holders, financial issues must be reported because they can raise concerns about judgment, reliability, and vulnerability to coercion under the Adjudicative Guidelines (particularly Guideline F: Financial Considerations).
When it comes to security clearances, financial responsibility isn’t just about your personal credit. It can also extend to business obligations. A recent ClearanceJobs forum post highlighted a common dilemma: if your tenant misses a rental payment that becomes more than 120 days past due, do you need to self-report it?
Was wondering if I could get your guys’ opinion on this.
I hold a Secret. I am a shareholder of a business with three other people. We rent out an office space just for business needs and the bill/client is sent to the owner of the business. The invoice is titled
[Company Name]
[Owners Name]
[Bill]
It has recently come to my attention that the owner missed a payment on our office space and its over the 120 day limit.
Do I have to report this or is this sort of a gray area? I’m not too sure as it was directed to owner under the business name, but I own a decent chunk of the company (20ish %)
Do you guys think that is a self-reportable event?
These are the self-reportable events:
- Criminal Issues: Arrests, charges, convictions, or detentions (even if dropped).
- Foreign Activities: Significant foreign travel, frequent foreign contacts, foreign citizenship, or passport applications.
- Financial Problems: Bankruptcy, significant unpaid debts (over 120 days), wage garnishments, or judgments.
- Substance Abuse: Illegal drug use or abuse of legal drugs, or related counseling/treatment.
- Personal Status: Changes in marital status, marriage to a foreign national, or other life changes.
- Mental Health: Counseling for psychological issues that impact reliability.
- Security Breaches: Loss or compromise of classified information.
Financial issues you are typically required to report
Financial issues are one of the top triggers for clearance concerns under SEAD-4 and the Adjudicative Guidelines, and transparency, even in “gray areas”, could make all the difference in maintaining trust and eligibility.
In this case, a tenant missing a payment for a business you run renting out office space may not be the type of financial problems that security clearances are required to report — which are significant issues that could look like bankruptcy, wage garnishments, or financial court hearings.
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Delinquent debts, especially those 120 days or more past due
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Accounts sent to collections or charged off
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Bankruptcy filings (Chapter 7, 11, or 13)
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Wage garnishments
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Tax problems, including unpaid federal, state, or local taxes, tax liens, or failure to file
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Judgments or liens (civil judgments, tax liens, mechanic’s liens, etc.)
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Foreclosure or repossession
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Defaulted student loans
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Significant unexplained affluence or sudden changes in financial status
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Financial issues related to a business you own or control, if they could reasonably reflect on your financial responsibility
What usually does not require reporting
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Minor late payments that are quickly resolved
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Credit score changes by themselves
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Debt that is current and being responsibly managed (with documentation)
Your best bet?
When you’re unsure whether a situation requires self-reporting, your Facility Security Officer (FSO) should be your first call. They’re the subject-matter expert on clearance reporting requirements and can provide guidance tailored to your specific circumstances.
