The SBA 7(a) Borrower Information Form 1919 is required to be completed by every individual with 20% or more ownership in the applicant business entity whether applying for an SBA 7a or 504 loan.
Completing this form is not complicated but there are a few things that are important to know.
First, the form consists of 26 questions spanning two sections, The first section pertains to the Applicant business and the second section to it’s individual principals or owners.
Before answering the questions, review the Definitions section on Page 1. This section defines the terms Affiliation, Close Relative, Eligible Passive Company, Household Member and Operating Company. You’ll need to know these definitions to answer questions 5, 6, 7, 8, 12, 14, 15, 16, 21, 23, 24 and 25.
Once you’ve reviewed these definitions you’re ready to move forward to Section I: Applicant Business Information.
There are 16 questions in this section that apply to the Applicant Business, not to be confused with the individual principals or borrowers. You will answer questions related to individual principals in section II.
SBA Form 1919 Section I
Section I determines to understand the applicant businesses corporate structure, legal standing and eligibility to qualify for SBA financing.
If married, it’s typically appropriate to answer yes to question number 1 unless the spouse does not contribute income and / or is not a joint account holder on deposit accounts and/or loans.
Answer yes to question number 5 if the applicant business has an ownership interest of more than 50% in another business. This is common where LLC’s have ownership interest in other LLC’s for estate planning purposes.
Answering Yes to question number 11 may render the business applicant ineligible to qualify for SBA financing. Contact your ThinkSBA specialist right away if this is the case.
SBA Form 1919 Section II
Section II: Principal Information consists of 10 questions related to the individual owners personal criminal, civil and credit history.
Answering yes to question 17 renders the individual ineligible for SBA financing. Answering yes to questions 18 or 19 require the principal borrower to also complete SBA form 912, which I will review in another podcast.
Most applicants will answer no to questions 12 – 16, nevertheless, read these questions carefully and answer honestly and accurately.
Signing SBA Form 1919
Once you’ve answered all the questions you are now required to sign the form, certifying the honesty and accuracy of your answers to the Federal Government. Therefore always, I stress always answer the questions honestly and accurately. Inaccurate or fraudulent answers will be discovered and may result in future prosecution.
In conclusion, review the definitions on page1 before answering any questions. Answer all questions honestly and accurately and contact your ThinkSBA loan specialist if you have general questions or aren’t sure how to answer a particular question.
Congratulations! You’re now ready to complete SBA 7(a) Borrower Information Form 1919.
My SBA Loan Pro
The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.
Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.
You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.
You can listen and subscribe on your favorite platforms including Apple Podcasts, Spotify, Google Podcasts, Anchor and Stitcher.