When applying for an SBA 7(a) loan, you must complete SBA Form 1919. The form is required for each owner, partner, officer and director with a 20% stake or more in the business and/or managing member who handles day-to-day operations. Applications for SBA 7(a) loans can’t proceed without the form, which determines your eligibility. We’ll walk you through each part so you know how to fill out SBA Form 1919.
As part of your SBA 7(a) loan application, Form 1919 is one of the many documents you will need to supply to the U.S. Small Business Administration or lender along with personal and business financial statements, a profit and loss statement, your business license, your resume, and other documents.
Form 1919 is submitted along with SBA Form 1920, which the lender uses to provide details regarding the applicant’s loan eligibility, plus the loan terms, purpose of the borrowed proceeds and number of jobs that will be created and/or retained by the applicant.
Section I of Form 1919 asks for the applicant’s business information, including the following:
This should be the legal name of the business, as well as the business’s designation as an “EPC” or “OC.”
The business address is typically the address where the business is registered for operations, while the project address may be the physical address of the storefront.
This includes the business phone number and email address.
The business tax ID issued by the IRS.
Section I should be filled out by an authorized representative of the applicant requesting the loan. If there are co-applicants, they must complete separate Section I’s as well.
In these boxes just below the initial section, list how much money you are requesting and the purpose of the loan.
Proceeds from standard 7(a) loans typically are used for working capital or to buy equipment. However, the SBA offers a number of specialty loan options in the 7(a) program that address other purposes for the loan proceeds. These are:
In addition to how many employees the business has, you will need to list the number of jobs you plan to add or retain as a direct result of the loan.
List all owners, business partners, officers, directors and stockholders, as well as the ownership percentage for each. The percentages must total 100%. This section must be signed and dated by each co-applicant.
There are 26 questions on SBA Form 1919. Many “yes” answers will require details on a separate sheet.
Check “yes” if more than one person is applying for the loan.
If you have previously applied for an SBA loan or other SBA program, you should check “yes” and provide details of those transactions on a separate sheet to be submitted with Form 1919. In addition, if you have been suspended or barred from participating in SBA programs, or were declared ineligible by any federal department or agency, you must disclose it here. Even if you voluntarily withdrew from participation in a previous transaction with the SBA or other federal department or agency, you must disclose that here.
If your business operates as a franchise location under a parent company, you will need to supply copies of your franchise agreements and related documents.
Affiliates are persons or third parties that control or have the power to control your business. These include:
You will need to disclose if you have ever filed for bankruptcy or whether you’re involved in any pending legal action. In addition, you will need to disclose if you have previously received an SBA or other federal loan and, if so, if that loan is delinquent or went into default.
Businesses that export goods can use these funds to expand their business. This is particularly true for businesses who apply for the following 7(a) loans:
If you have paid a fee to a lender, broker or other third-party assisting in filling out this form, you’ll need to check yes.
You’ll have to disclose if any portion of your businesses’ revenues are derived from gambling or of “a prurient sexual nature” here.
The SBA makes it quite clear that the following businesses cannot receive SBA loans:
Questions 12 through 15 asks you to disclose if you, any owner of the business or any member of a business owner’s household is an SBA employee, has been an SBA employee in the past year, is a Member of Congress, an appointed member of the federal government or is a SCORE mentor.
If you have enlisted or plan to enlist the assistance of a lawyer, accountant, broker or other professional to help you prepare your loan application and related materials, you should disclose that here.
The SBA doesn’t provide loans to businesses where there’s a perceived conflict of interest between the SBA or any other government employee. If you answer “false” to any of these questions other than No. 15, your application will have to go through special steps for processing to determine eligibility.
This section is where you provide personal information for each of the business’s principals. Required information includes:
SBA 7(a) loan decisions are made on a case-by-case basis, which means that it might be possible to be approved even if one of the principals has been involved in a criminal proceeding or is currently incarcerated or on parole or probation.
While a SBA 7(a) loan is available to legal residents, eligibility is based on the status of the applicant. Be prepared to discuss your visa status with the local SBA office. You also will need to complete U.S. Citizenship and Immigration Services’ Form G-845 to verify citizenship status.
If you aren’t eligible to participate in this loan process by any federal department or agency, you must disclose it here. Furthermore, if you are behind in any child support obligations, it must be disclosed here.
You will need to provide a list of all businesses in which you have an ownership share.
You must disclose all previous bankruptcies, both personal and for any other businesses you have owned and operated, you have filed.
Regardless of type, you must disclose if you are a named party, plaintiff or defendant, in any legal action. This includes civil suits, such as divorce, as well as any criminal proceedings.
If you have ever or currently have any SBA loans or loans from any other federal agency, including student loans, you must disclose that information here. You also must state if any or all of those loans are currently delinquent or have been in default.
Once you and your lender have completed SBA Forms 1919 and 1920, you need to compile all related documents and paperwork.
It is imperative that you have everything together as you can’t go back later and add more documents to your application.
You will need to upload your documents electronically through SBA One (its preferred method) or the e-Tran website. If you can’t submit your documents through these avenues, you can send them via file transfer protocol (FTP) to the SBA website.
If you have trouble uploading your documents, you can send them using the “Send This File” option. You can also submit any supplemental documents through this site.
You agree to the following when you sign and submit SBA Form 1919:
Check the expiration date in the upper right corner of the first page to make sure you’re not filling out an expired form.
Other required paperwork includes:
Form 1920 documents the applicant’s loan eligibility, loan terms, purpose of the loan and how many jobs will be created and/or retained as a result of the loan.
