If you’re applying for a Small Business Administration (SBA) 7(a) loan, including the agency’s express programs, you’ll need to complete an SBA Form 1919.
We’ll walk you through the process of completing this SBA 7(a) borrower information form.
What Is an SBA Form 1919?
An SBA 1919 form asks borrowers to answer 26 questions and supply personal information.
You’ll need to answer questions on subjects like:
- Your citizenship status
- What debts you have
- Whether you’ve received previous government financing
- Whether you’ll be creating new jobs.
Before applying for an SBA 7(a) loan, you’ll need to calculate how much funding you’ll need and what the total cost of borrowing is likely to be. This includes an estimated interest rate and loan repayment terms.
The SBA produces weekly lending reports, which should give you an idea of average loan application success rates. These are certainly worth looking at if you’re interested in conducting some research before going ahead.
(Here’s the PDF of SBA form 1919.)
Who Has to Complete an SBA Form 1919?
A business owner applying for an SBA loan must complete SBA Form 1919.
Depending on the structure of your business, there may be others who also have to complete the form.
These people include:
- You: If you’re the sole proprietor.
- Partners: This includes any general or limited partners who own 20% or more equity in your business.
- For a corporation: If the company is a corporation, this includes anyone owning 20% or more equity in the corporation.
- For a limited liability company (LLC): If the business is an LLC, all members who own 20% or more of the company and every director, managing member and officer have to complete the SBA Form 1919.
- Employees: If you hire someone to manage the day-to-day aspects of your business, they too have to complete the SBA Form 1919.
Filling Out an SBA Form 1919
According to the National Small Business Association (NSBA), a small-business advocacy organization, there’s a direct link between a small business owner’s “ability to hire and his/her ability to get financing.” In its 2017 year-end economic report, the NSBA noted that 73% of small businesses were able to acquire adequate financing to suit their needs.
Here’s our step-by-step guide to completing an SBA Form 1919.
Step 1: Provide Crucial Applicant Information
The first part of Section 1 relates to the applicant’s identifying information, including:
Applicant Business Legal Name
This has to be the same as the name listed on your company documentation and federal tax returns. You’ll also have to state if your business is an operating company (OC) or an eligible passive company (EC).
Does business as (DBA) or Trade Name
If you’re doing business under a trading name or “doing business as” a different name, you have to list it here.
Additionally, whoever is authorized to complete the SBA Form 1919 must provide the following information:
- Primary business address
- Project address: If you have premises that need financing at different addresses, you must state where these are
- Applicant’s business tax identification
- The primary contact, i.e., the authorized representative of your company
- Applicant’s business phone number: The current number for whichever company is putting together all the borrower information.
- The email address of the primary contact person completing the form.
- The amount of money you want to borrow
- The purpose of the loan: List all the reasons why you want the loan. For example, you may want to refinance existing debt, buy a property, purchase other fixed assets, etc.
- Number of existing employees
- Number of existing jobs to be created and retained
- Small business applicant ownership: This includes the names, addresses, and percentage ownership of any directors, owners, proprietors and stockholders.
Then, the following 11 questions will require you to mark either “yes” or “no.” These questions relate to the person applying for the SBA loan as well as the person also completing the SBA Form 1919.
The next 5 items after that require you to mark either “true” or “false” to ensure there are no conflicts of interest between anyone in your company, the SBA or another government agency.
Once step 1 is complete, the authorized applicant has to sign and date the form.
Step 2: Supply Details About the Principal Borrower
Moving on to section 2, the applicant has to provide information like their Social Security number, date of birth, place of birth, home address and the percentage of their ownership in the business. You also must state whether you’re a military veteran and disclose your gender, ethnicity and race.
There are then 10 questions requiring “yes” or “no” responses. These include whether you’ve ever filed for bankruptcy protection or if you’re facing pending legal actions (including divorce proceedings, child-support payments, etc.). You’ll also be asked about past government financing, including veteran or student loans, a disaster loan or a Federal Housing Administration home loan. Naturally, there are also questions on whether you defaulted on any of these.
Step 3: Sign on the Dotted Line
Your signature verifies that you have read all relevant statements related to applying for an SBA loan. It also confirms that where possible, you’ll use U.S.-made equipment, comply with any limitations listed in the SBA Form 1919 and only use the loan for the reasons you’ve stated.
Ready to Tackle the SBA Form 1919?
You should now have a better idea of who needs to fill out the SBA Form 1919 and how to go about doing that. Remember, the 3 main steps to completing this form are:
- Providing accurate applicant information
- Supplying the necessary details about the principal borrower
- Signing the document