What you need to know to fill out the SBA’s borrower information form.
These government-backed business loans might be less expensive than the alternative, but you’ll pay in other ways — namely, by filling out form after form. Applicants to the most popular SBA loan program must fill out Form 1919, which the Small Business Administration uses to gather information about your business and its owners. With 26 questions, its longer than many other SBA forms. We take you through each question in detail to make sure you’re doing it right.
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What is SBA Form 1919?
Form 1919 is also known as the SBA’s borrower information form. It’s where the Small Business Administration gets general information about your business and its owners: Who the owners are, if they have any conflicts of interest, if the businesses or any of its owners have any debts or had any run-ins with the law.
Your lender and the SBA use this form for multiple purposes. Primarily, it helps them determine if your business is eligible for the loan, what other forms you need to fill out and authorizes the SBA to conduct background checks.
Form 1919 is required for all businesses applying for a loan through any SBA 7(a) program or the Community Advantage program (CA). It’s divided into two sections: Information about your business and the business owners.
How to fill out SBA Form 1919 Section I: Applicant Business Information
Section I of Form 1919 goes into detail about your business: Its address, its owners, how much it wants to borrow, its debts and any connection to the government.
Before you get started, make sure your form is up-to-date by checking the expiration date in the top right-hand corner. If it’s not, you can find the most recent version on the SBA website. You can either fill out the form in dark ink or type into a PDF reader. All signatures need to be in dark ink, however. Print as neatly as possible to avoid any confusion.
Who should fill out Section I?
Two types of people should fill out Form 1919 Section I:
- An authorized representative of the business. Usually, this is the president or majority owner of the business, though any other key officer in the company can fill out this section.
- Coapplicants. This includes leasers who are applying for an SBA real estate loan for property your business will use. Another company applying for an SBA loan with you is considered a coapplicant. Though, your coapplicant might not have to fill out Section I if they aren’t required to guarantee your loan. Not sure if they are? You might have all cosigners complete it just in case to avoid delaying your application.
What information do I need for Section I?
To save time, gather the following documents and information before you start filling out Section I:
- Your business’s most recent tax return
- Your business’s licenses and agreements
- The number of employees
- Contact information for all business and equity owners
- How much each owner or equity holder owns of the business
- How much your business wants to borrow and why
- The names of business affiliates
Step 1: Business information
Under Applicant business legal name, write the business’s name as it appears on tax forms. Check OC if you’re an operating company — most applicants are. Check EPC if you’re an Eligible Passive Company, or a company that leases property to operating companies. EPCs are only eligible for real estate financing through the SBA.
If your business has a trade name that’s different from its legal name, write that under DBA or trade name. Fill out your business’s address, tax ID, phone number, project address, primary contact and email address as it appears on its tax return.
Step 2: Loan information
Write the amount you’re applying to borrow next to Amount of loan request and what you intend to use the loan for next to Purpose of the loan. Then fill out the following fields.
- Number of employees? (including owners). Write the number of full-time, part-time and business owners. Don’t include contractors.
- Number of jobs created as a result of the loan? (including owners). This number doesn’t have to be exact, just an estimate.
- Number of jobs saved because of the loan that otherwise would have been lost? (including owners). Write an estimated number of employees the business expects to let go if it isn’t approved.
Step 3: Small business applicant ownership
Write the name, title, ownership percentage and address of each person who owns shares in the business. This should include all owners, partners and investors. All percentages should add up to 100% — if not, check your math.
Not enough room? Attach another sheet with the additional information.
Step 4: Yes or no questions
Follow these directions to check either yes or no for the following questions:
- Question 1: Coapplicants. Indicate whether another company, like an EPC, is applying for the SBA loan with your business. If you check Yes, each coapplicant must complete their own copy of this form.
- Question 2: Previous SBA loan applications. Indicate whether you’ve already applied for an SBA loan. If you check Yes, attach a sheet detailing when you applied, for how much, what purpose and whether it was accepted or denied.
- Question 3: Regulatory actions against your business. Indicate if your business is ineligible for an SBA loan because of previous trouble with regulators.
- Question 4: Business agreements. Does your business operate under any license, franchise, distributor, dealership, membership or jobber agreements? If you checked Yes, attach a copy of the agreement and any other relevant documents to your application.
- Question 5: Affiliates. Indicate if your business has affiliates. If so, attach the list of names.
- Question 6: Bankruptcy protection. If the business or its affiliates has filed for bankruptcy, check Yes. If you’re in the process of filing, attach a sheet with details.
- Question 7: Pending legal action. If your business is currently involved in a lawsuit, check Yes and attach a separate sheet with details.
- Question 8: Previous government loans. If the business or its affiliates has received SBA funding or financing from another government agency, check Yes and complete question 8. If not, continue to question 9.
- Question 8 (a): Delinquencies. Indicate if your business or its affiliates is currently late on payments for a government loan. If not, continue to question 9.(b): Defaults. Has your business or its affiliates ever failed to pay back a government loan? If you answered Yes to either of these, provide an explanation.
- Question 9: Exporting. If your business intends to use this loan to expand or begin exporting products to other countries, include a separate sheet with export details and how much your business is projected to make.
- Question 10: Help with your application. These forms can be tricky and time consuming. If you intend to use a third party to help with the SBA application, or were referred to a lender, you have to include information regarding compensation through the SBA Form 159, and check Yes.
Question 11: Revenue from vice. You’re not eligible for an SBA loan if your business makes any money from gambling, loan packaging, or pornography.
Step 5: True or false questions
This next section through the last part of Section I is intended to make sure that your business has no conflicts of interest with the government. Check whether each statement about your business’s relationship to the SBA is true or false. If any are false, then your application needs to be processed directly by the SBA 7(a) Loan Guarantee Processing Center (LGPC), not your lender. You also might have to submit additional documentation.
Step 6: Signing Section I
Review your answers to Section I to make sure they’re accurate. Read the representations and certifications stating that you’ll comply with the SBA’s requirements, try to purchase American-made products when possible and understand that you can face a hefty fine and jail time if you make any false statements.
Then, print your name and title before signing and dating the form.
How to fill out SBA Form 1919 Section II: Principal Information
Section II is where the Small Business Administration gets to know the business owners and investors. Questions range from demographics to criminal history — and it’s shorter than Section I.
Who should fill out Section II?
Every principal, employee that runs the business’s daily operations and trustor needs to fill out Section II separately. What’s a principal? Well, that depends on your business type.
- Partnership: All general partners and any limited partners that own 20% or more of the firm’s stock.
- LLC: All officers, directors, managing members and anyone else who owns at least 20% of the company’s stock.
- Sole proprietorship: The business owner.
- Corporation: All directors, officers and anyone who owns at least 20% of the corporation’s stock.
What information do I need for Section II?
Having the following information and documents on hand can make filling out Section II a lot smoother:
- Your last tax return
- Your business records
- Any criminal records
- A list of businesses you’re affiliated with
If you’re a permanent resident, have your alien registration card on hand.
Step 1: Personal information
Next to Applicant business, write the business name as it appears on its tax form. Then, write your name, Social Security number (or tax ID if you’re a company), date and place of birth, address, phone number and percentage of ownership.
Step 2: Voluntary disclosures
Here, write the number that corresponds with your answer to questions about your military service, gender, race and ethnicity. This section is optional, so you can write X next to any category you don’t want to disclose to the SBA. If you’re an entity, write X next to each category in this section.
Step 3: Yes or no questions
These questions pertain to any criminal history you may have. Your answers could affect your eligibility for an SBA. You’re required to initial your responses to these questions.
- Question 17: Current criminal charges. If you’re facing criminal charges, you’re not eligible for an SBA loan until after you’ve completed your sentence.
- Question 18: Recent arrests. Check Yes if you’ve been arrested in the past six months for a criminal — not civil — offense.
- Question 19: Past crimes. Check Yes if you’ve ever been sentenced for a criminal conviction — not including minor traffic violations. If you’re currently on probation or parole, you aren’t eligible for a loan. Otherwise, if you answered Yes to questions 18 or 19, you and all principals need to fill out Form 912.
- Question 20: Regulation violations. If your business has been in trouble with federal regulators, you may be ineligible for a federal loan.
- Question 21: Child support. Indicate if you’re more than 60 days late on any official child support payments. If you own less than 50% of the business, you’re not required to answer Yes.
- Question 22: Citizenship. Indicate if you’re a US citizen, permanent resident or neither. If you’re a permanent resident, write your registration number. If you’re neither, write your country of citizenship and initial your response below.
- Question 23: Affiliates. Check Yes if you own a stake in any of the applicant business’s affiliates and attach a list with the name and ownership percentage.
- Question 24: Bankruptcy. Provide information about you or any business that you’ve had stake in that has filed for bankruptcy.
- Question 25: Legal actions. Disclose If you’re going through a divorce or are involved in any other civil cases.
- Question 26: Federal debts. If you or other businesses you’ve controlled received federal funding — including student loans — check Yes and move on to 26 (a) and (b). If not, move on to signing Section II.
- Question 26 (a): Delinquencies and (b): Defaults. Provide a written explanation if you’re behind on any loan payments or ever defaulted on a government-issued loan.
Step 4: Signing Section II
Review your answers to make sure they’re accurate — otherwise you could face heavy fines and even jail time. Then, go over the representations and authorizations. They’re identical to the representations and authorizations in Section I.
Sign and date the form, printing your name and title below.
I filled out Form 1919. What’s next?
All that’s left is to submit your form to your lender. However, depending on the answers to some of the questions, you might need to fill out some other forms. For example, if any of the principals have a criminal history, all principals must fill out and submit Form 912, which goes into more detail. And if your business plans to use any third parties to help with the application, it might need to submit Form 159.
Reach out to your lender or the SBA if you have any questions.
Compare top SBA loan providersRates last updated January 20th, 2019
Form 1919 might seem more involved than some other SBA forms, but it’s relatively straight-forward because it only involves basic information about the business and its owners. There’s none of the fancy math that’s required for the personal financial statement, for example, and you might not need to dig deep into your personal and business files for answers.
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