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When applying for a loan under the Small Business Administration’s (SBA) 7(a) loan program, borrowers will need to fill out the SBA Form 1919, SBA 7(a) Borrower Information Form. Depending on the number of principals, co-owners or managers in your business, it’s important to ensure that all relevant parties complete this form.
What is SBA Form 1919?
SBA Form 1919 collects information about your business and facilitates background checks of your business and its principals. Form 1919 is used when applying for any loan under the SBA’s 7(a) loan program. The SBA 7(a) loan program provides funding for small businesses to purchase commercial property, expand an existing business or purchase assets. These are general purpose loans and include the following variants:
- Standard 7(a) Loan: Lump sum borrowing up to $5,000,000 for 10 or 25 years for general business purposes.
- SBA 7(a) Small Loan: Lump sum borrowing up to $350,000.
- SBA 7(a) Express Loan: 7(a) loan with expedited approval process, limited to $350,000, may be offered as a line of credit.
- SBA 7(a) Export Express Loan: Designed for exporters with expedited approval process, limited to $500,000, may be offered as a line of credit.
- SBA Export Working Capital Loan: Designed specifically for businesses to meet export demands, $5 million line of credit for 12 months or less.
- SBA International Trade Loan: Designed for businesses that are expanding exports or have been adversely impacted by imports, $5 million loan for terms of up to 25 years.
- SBA 7(a) CAPLine: Line of credit, otherwise contains similar terms to standard 7(a) loan.
SBA Form 1919 Section I
This section collects information related to your business’s borrowing history, attributes and relationships to the government or SBA.
Who Needs to Complete Section I?
Section I must be completed by an authorized representative of the small business applicant. An authorized representative is a key officer, qualified to consent on behalf of the business as its signatory for legal affairs. In most cases, this will be a president or majority owner of the business, but they may delegate that right to other key officers within the company.
Section I must also be completed by any co-applicants to the loan. If multiple entities are applying together, then they must complete Section I separately. This includes leasers applying for SBA real estate funding to finance or refinance property on which the primary small business applicant(s) will be operating.
What Documents Are Needed?
The following items may be helpful in completing Section I:
- Most recent business tax return.
- Requested loan amount and purpose.
- Current employee headcount.
- Ownership stake and contact information of all equity owners.
- List of business affiliates.
- Business operating licenses or agreements.
Begin by entering your business information as it legally appears on your tax documents. You should check the corresponding box that applies to your company; you will either qualify as an Operating Company (OC) or an Eligible Passive Company (EPC).
- Operating Company: Your business is an OC if it operates as a qualifying small business under the SBA. You'll fall in this category unless you’re applying for real estate financing as an EPC.
- Eligible Passive Company: An EPC is an entity which leases property to an OC for their use in small business activities. You may apply for real estate financing as an EPC if you qualify under the requirements established by the SBA.
If applicable, you may include the trade name that your business is operating under in the box to the right.
Fill out the rest of the boxes as they appear on your business’s tax returns, including its address, tax ID number, phone number, primary contact, and email address.
Amount of Loan Request
Enter the requested loan amount and briefly describe the purpose for which the loan will be used. In the boxes to the right, you will enter the following:
- 1. Number of existing employees employed by your firm: This includes owners, part-time and full-time employees, but does not include contractors.
- 2. Number of jobs to be created as a result of the loan: This is the number of jobs that will be created as a result of this loan. This should be a reasonable estimate.
- 3. Number of jobs that will be retained as a result of the loan that otherwise would have been lost: This is the number of positions that may be eliminated if you are unable to obtain the loan. Do not include any positions that will be created if funding is obtained. This should be a reasonable estimate.
Small Business Applicant Ownership
List each individual owner of the small business as well as their title, ownership percentage, and address. This can include partners, officers and any equity holders in the business. The sum ownership percentage must equal 100%.
Note that if you answer yes to questions 1 through 11, you may need to provide a detailed explanation on a separate page or fill out an additional SBA form. Do not forget to do this, or it could negatively impact your application.
Question 1. If other entities are applying for a loan in tandem with your application as either an OC or EPC, they'll need to file a separate Section I of form 1919.
Question 2. This question checks whether you’ve previously applied for any loans in connection with an SBA-related program. If you have, you'll need to provide details as a supplement to your application.
Question 3. If your business has faced any regulatory action from a federal entity that prevents you from obtaining a loan, you may not be eligible for an SBA loan.
Question 4. If your small business operates under any type of business agreement—such as a franchise, licensee, distribution chain, or dealer network—include copies of your agreement(s) or license(s) as a supplement to your application.
Questions 5 – 7. These questions deal with your business and its affiliate relationships. Affiliation occurs when one business has the power to control another business. The relationships below qualify as affiliate relationships:
- Equity ownership of another business that confers the ability to control business activities (generally 50% or more of voting stock). Any existing stock options are treated as if exercised.
- Existing merger agreements that confer the power to control.
- Partners, officers or managers of your business control the Board of Directors or management of another business.
- Substantial economic co-dependence with another business. This can be due to extensive subcontracting, combined resources, or contractual relationships.
If your business holds any affiliate relationships, you will need to list them separately. Include the legal name of each affiliate, as written on their tax documents.
If you answered yes to question 6 or 7, be sure to include details describing the pending litigation or bankruptcy filing.
Question 8. If your business or any of its affiliates previously obtained a direct or guaranteed loan from the SBA or another federal agency, you will need to disclose:
- a) Whether any of those loans are currently delinquent.
- b) Whether your business or its affiliates ever defaulted on any of those loans.
Be sure to provide an explanation if you answer yes to any portion of question 8.
Question 9. If your business intends to begin or expand export activities with the loan proceeds, estimate the total sales from exports gained as a result of this loan. This should be a reasonable estimate. Be sure to explain the nature of your export expansion on a separate form.
Question 10. If you hire or intend to hire a professional to prepare your loan application, they may need to fill out a separate form with the SBA disclosing their fees and compensation. This also applies to professionals who referred the loan to the lender. List the name and company of the professional who assisted with your application on a separate form.
Question 11. If your business derives any revenue from gambling, loan packaging, or products or services of a sexual nature, you will not be approved for an SBA loan.
Questions 12 – 16. These questions cover all conflict of interest disclosures between your business and the government. They concern your business’s owners, officers, directors, shareholders with at least 10% ownership, and their respective households. Answering false to any of these may require additional disclosures of the nature of the relationship and additional documentation.
Representations and Certifications
The last step in the process is to verify that all of the entries you’ve made on Section I are accurate. It’s important to ensure that all forms are completed correctly prior to submission, as any deliberately false representations constitute a crime under U.S. federal law. Once you’ve read the last segment and agreed with all of the items listed, sign and date the accuracy certification to complete Section I of Form 1919.
SBA Form 1919 Section II
This section collects information related to the principals of your business and includes questions related to criminal and professional records, personal obligations, citizenship, and business history.
Who Needs to Complete Section II?
Section II must be completed by each principal of your small business. Depending on the structure of your business, a principal is defined as follows:
- Sole Proprietorship: The business owner.
- Partnership: Each general partner, and any limited partners owning 20% or more of the firm’s equity.
- Corporation: Each officer, director, and anyone owning 20% or more of the firm’s equity.
- Limited Liability Companies: Each officer, director, and managing member as well as anyone owning 20% or more of the firm’s equity.
Anyone hired to manage the the day-to-day operations of your small business—also referred to as a key employee—must complete Section II. If your small business is owned by a trust, then the Trustor must also complete Section II.
What Documents Are Needed?
The following items may be helpful in completing Section II:
- Most recent personal tax return for each principal completing form.
- Criminal and business records for each principal completing form.
- Alien Registration Card for non-U.S. Citizens.
- List of business affiliates you may partially or fully own.
Begin by filling out the first section with your name as it appears on your personal tax returns; include your social security number, date and place of birth, contact information, and percentage ownership in the applicant business.
This segment is optional but can be completed to assist the SBA in its data collection efforts. This will have no bearing on whether your application is approved or denied.
Note that if you answer yes to questions 17 through 26, you may need to provide a detailed explanation on a separate page or fill out an additional SBA form. Do not forget to do this, or it could negatively impact your application.
Questions 17 – 19. These questions pertain to your criminal record and require you to initial your responses. If you answer yes to question 17, you will not be eligible for an SBA loan.
If you answer yes to either questions 18 or 19, you will need to complete SBA Form 912, which is a personal disclosure of any and all felonies or misdemeanors you’ve been convicted of. Remember to detail criminal offenses on a separate sheet. This does not necessarily disqualify you from loan approval.
You will not qualify for an SBA loan if you’re currently on parole or probation. The SBA requires that all criminal conduct be fully resolved prior to loan eligibility.
Be sure to initial next to each question to confirm your response.
Question 20. If your business has faced any regulatory action from a federal entity that prevents you from obtaining a loan, you may not be eligible for an SBA loan.
Question 21. If you own 50% or more of the small business applicant, you'll need to disclose whether you owe any delinquent child support payments. If you're more than 60 days delinquent on your child support payments, you may not be eligible for an SBA loan until the delinquency is resolved.
Question 22. If you're not a U.S. Citizen, you'll need to provide your alien registration number as well as your country of citizenship. Legal permanent residents and foreign citizens may still be eligible for an SBA loan, but additional documentation may be requested by the SBA. Be sure to confirm your response to this question by signing your initials.
Question 23. Affiliate relationships are defined in our Section I guide. If you answer yes to this question, you will need to include a list of all affiliate businesses that you own as well as your ownership percentage and/or position in each. Include the legal name of each affiliate, as written on their tax documents.
Question 24. This question relates to bankruptcy filings by you or any business that you’ve controlled. Detail the nature of any bankruptcy filings on a separate sheet.
Question 25. This question relates to legal actions presently filed against you or your business. This includes litigation of any affiliates you control. Describe the nature of any pending litigation on a separate sheet. Do not count past litigation that was resolved.
Question 26. This question requires you to disclose whether you or any business you’ve controlled has ever obtained direct or guaranteed financing from a federal agency. If you answer yes, you'll also need to disclose:
- a) Whether any of those loans are currently delinquent.
- b) Whether you or your businesses ever defaulted on those loans.
You need to provide a separate written explanation if you answer yes to either a or b above.
Representations and Certifications
The last step in the process is to verify that all of the entries you’ve made in Section II are accurate. It’s important to ensure that all forms are completed correctly prior to submission, as any deliberately false representations constitute a crime under U.S. federal law. Once you’ve read the last segment and agreed with all of the items listed, sign and date the accuracy certification to complete Section II of Form 1919.
Once all required parties have completed Section I or II, gather all of the completed forms as well as any supporting documents, and assemble them as part of your overall SBA loan application. SBA Form 1919 is only one of a number of forms you may be required to fill out. Depending on your SBA-approved lender or unique circumstances, you may be required to complete other forms. For more help, read our guide to SBA Loans and how to apply for them, or click here to shop small business loans.