SBA Form 1919: Step-by-Step How to Fill Out SBA Loan Application

When applying for an SBA 7(a) loan, you must complete SBA Form 1919. The form determines your eligibility and is required for each owner, partner, officer and director with a 20% stake or more in the business and/or any managing member who handles day-to-day operations.

We’ll walk you through each step of the process so you know how to fill out SBA Form 1919.

What is 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, along with personal and business financial statements, a profit and loss statement, your business license, your resume and other documents.

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
• 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
• You consent to a background check

Page 1: Business information

Form 1919, also known as the SBA Borrower Information Form, begins by collecting basic information about the applicant’s business, including the following:

Business name

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 a storefront.

Contact information

This includes the business phone number and email address.

Business Tax ID

This is the business tax ID issued by the IRS.

Amount and purpose of the loan

In these boxes, located just below the initial section, list how much money you are requesting and what you plan to use it for.

Proceeds from standard 7(a) loans are typically 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 $500,000. Turnaround time for approval is between two and 10 business days, and monies are generally used for working capital.
• SBA Express: With a maximum loan amount of $500,000, 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 typically within 36 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: Funds 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.

Ownership of the applicant

List all owners, business partners, officers, directors and stockholders, as well as the ownership percentage for each. This section must be signed and dated by each co-applicant.

Page 2: Business questions

In addition to providing the basic information requested on page one of the form, you’ll need to answer some questions about yourself, your business and any other business owners.

There are 13 questions on SBA Form 1919. Many “yes” answers will require details on a separate sheet.

1: Application prohibitions and bankruptcies

This first question asks whether you, your business or any business associates have been suspended, debarred, declared ineligible or voluntarily excluded from participation in a transaction by any Federal agency. You’ll also need to disclose if any business owners are currently involved in a bankruptcy.

2: Federal loan delinquencies

If you, your business, any business owners or affiliates have previously received a government-backed loan, such as an SBA, USDA or FHA loan, you may need to provide those details here. Specifically, this question asks if you are currently delinquent, or if you have previously defaulted, on any loans provided by a Federal agency.

Affiliates are persons or third parties that have the power to control your business. These include:

• Parent companies
• Any company owned or controlled by one of the loan applicants
• Companies wherein the applicant(s) own at least 20%
• Any company with an agreement to merge with business receiving the SBA loan

3: Other business activity

Do you or any other business owners have a stake in another business? If so, that will need to be disclosed here. You will also need to provide additional details on the business relationship in a separate document.

4: Criminal offenses

SBA 7(a) loan decisions are made on a case-by-case basis, which means it might be possible to be approved even if one of the principal owners has been involved in a criminal proceeding, as long as no business owners are currently incarcerated or under indictment for a felony or financial crime. Still, any current or past criminal offenses will need to be disclosed here.

5: Export loans

Businesses that export goods can use these SBA loan funds to expand their business. This is particularly true for businesses who apply for the following 7(a) loans:

• Export Express
• Export Working Capital
• International Trade

If you’re currently exporting or plan to begin exporting products or services, you’ll need to disclose it. You will also need to provide an estimate of the total export sales this loan will support.

6: Fees

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, provide their name and disclose the fee amount.

7: Revenues from gambling or adult entertainment

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:

• 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.
• Lending: Businesses that lend money or whose stock in trade is money aren’t eligible. These include banks, finance companies, factoring companies, leasing companies and life insurance companies (but not insurance agents).
Businesses related to a prurient sexual nature: This includes businesses that put on shows of a sexual nature or derive more than trivial money from presenting, selling products or selling presentations of a sexual nature.

There may also be restrictions for businesses who generate revenue from loan packaging or lobbying activities.

8 to 12: Conflicts of interest

Questions 8 through 12 ask you to disclose any potential conflicts of interest. This includes:

• Whether you, another owner of the business or any member of a business owner’s household is an SBA employee or has been an SBA employee in the past year.
• If any business owner or member of a business owner’s household is a Member of Congress, an appointed member of the federal government, certain government employees or military members or a SCORE volunteer.

13: 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.

How to submit SBA Form 1919

Once you have completed SBA Form 1919, compile all related documents and paperwork. The form and all associated documents can be submitted directly to your lender.

Keep in mind that failing to provide the requested information could impact your loan decision, so it’s important to double check that you have everything in order before submitting your SBA loan application. Your lender will then send your documents to the SBA for final approval.