SBA Form 1919: Step-by-Step Guide on How to Fill Out SBA Loan Application
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.
- Section I: Applicant business information
- Section I: Questions
- Section II: Principal information
- Section II: Questions
What you need to know 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: Applicant business information
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.”
- An EPC, or eligible passive company, is a small entity or trust that leases real or personal property to an operating company for its business use. An EPC doesn’t participate in any regular or continuous business transactions.
- An OC, or operating company, is an eligible small business that is currently or soon will be running a business on real property owned by an EPC. It also may currently or will soon use personal property owned by an EPC.
Business or project address
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.
Business Tax ID
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.
Amount of loan request/purpose of the loan
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:
- 7(a) small loan: Unlike a traditional 7(a) loan, which has a maximum amount of $5 million, this loan can be no more than $350,000. Turnaround time for approval is between five and 10 business days, and monies are generally used for working capital and purchasing equipment.
- SBA Express: With a maximum loan amount of $350,000 this has an expedited review time of no more than 36 hours. The SBA Express can be used for working capital, machinery, equipment or real estate loans.
- Export Express: Available for business entities that export goods, the maximum loan amount for this loan is $500,000. Response time for this loan is 24 hours.
- Export Working Capital: With a maximum loan amount of $5 million, this loan supplies exporters with extra cash to support their export sales. Applicants generally hear back within five to 10 business days.
- International Trade: Monies from this loan, which can be as much as $5 million, are used to help businesses that are expanding their export sales or need to update their business operations to compete in the international marketplace. Turnaround time is between five and 10 business days.
- Veterans Advantage: This program assists veteran-owned businesses by offering the above-mentioned loan types but with a waived guarantee fee for the Express loan.
- CAPLines: Cash from this loan is used to help small businesses maintain cash flow during seasonal ups and downs, as well as pay expenses related to construction projects or business contracts. It also can serve as a revolving line of credit. The maximum amount is $5 million.
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.
Small business applicant ownership
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.
Section I: Questions
There are 26 questions on SBA Form 1919. Many “yes” answers will require details on a separate sheet.
No. 1: Co-applicants
Check “yes” if more than one person is applying for the loan.
Nos. 2 and 3: Past SBA applications and federal restrictions
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.
Nos. 4 and 5: Franchises and affiliates
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:
- Parent companies
- Any company owned or controlled by one of the loan applicants
- Individuals or entities that own 50% stock or more, or a majority amount when compared to other stockholders
- Companies wherein the applicant(s) own at least 20%
- Any company with an agreement to merge with business receiving the SBA loan
- Essential subcontractors or other companies necessary for the business’s economic success
Nos. 6 to 8: Eligibility requirements
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.
No. 9: Export loans
Businesses that export goods can use these funds to expand their business. This is particularly true for businesses who apply fo the following 7(a) loans:
- Export Express
- Export Working Capital
- International Trade
No. 10: Assistance filling out form
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.
No. 11: Ineligible businesses
The SBA makes it quite clear that the following businesses cannot receive SBA loans:
- Gambling: Any business that relies on gambling — including casinos, racetracks and similar entities — is expressly prohibited from receiving these loans. However, if a business engages in legal gambling activities or lottery ticket sales but that aspect of their overall business is less than one-third of their annual gross income, that business could be eligible for an SBA 7(a) loan.
- Loan packaging: Businesses that lend money or whose stock in trade is money aren’t eligible. These include banks, finance companies, factoring companies, leasing companies and insurance companies (although not insurance agents).
- Businesses related to a prurient sexual nature
Nos. 12-16: Conflicts of interest
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.
Section II: Principal information
This section is where you provide personal information for each of the business’s principals. These include:
- The sole proprietor
- Partnerships: All general partners as well as any partners owning at least 20% equity, or any partner involved in the business’ management
- Corporations: All owners with at least a 20% stake plus each officer and director
- Limited liability corporations: All owners with at least a 20% stake plus all officers, directors and managing members
- Anyone hired to manage the day-to-day operations
- Any Trustor if the business is owned by a trust
The personal information includes their:
- Social Security number
- Date and place of birth
- Home address and phone
- Percent of ownership
Section II: Questions
Nos. 17 to 19: Criminal offenses
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. This information must be disclosed on Form 912, which is a statement of personal history.
Nos. 20 and 21: Application prohibitions
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.
No. 22: Citizenship
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.
No. 23: Other business activity
You will need to provide a list of all businesses in which you have an ownership share.
No. 24: Bankruptcy
You must disclose all previous bankruptcies, both personal and for any other businesses you have owned and operated, you have filed.
No. 25: Other legal actions
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.
No. 26: Other federal loans
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.
How to submit SBA Form 1919
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.
FAQs about SBA Form 1919
What am I agreeing to when I sign Form 1919?
You agree to the following when you sign and submit SBA Form 1919:
- All information is true and accurate
- A background check
- You will comply with hazard insurance, lead-based paint, civil rights and other requirements
- You will use all loan proceeds for the business purposes stated in the application
- Wherever possible, you will purchase only American-made products and equipment
How do I know if I have the correct 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.
What other paperwork is required for an SBA 7(a) loan?
Other required paperwork includes:
- History and overview of the business
- Profit-and-loss statement
- 3 years of business and personal tax returns
- 1-year projection of income and finances
- Statements regarding personal history and personal finances
- Resumes for each principal in the business
What is SBA Form 1920?
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.