SBA loan documents and forms: questions and answers

All 19 answers on SBA loan documents and forms

Each entry gives the short answer. Open it for the full explanation and its sources.

What documents do you need for an SBA 7(a) loan?

Expect SBA Form 1919, a personal financial statement from each 20% owner and guarantor, three years of financials, interim statements and IRS transcripts. Deal-specific items are added. SOP 50 10 8.1, Appendix 20, Para. A lists them, and lenders may ask for more.

What is SBA Form 1919 and who completes it?

SBA Form 1919 is the Borrower Information Form for all 7(a) loans. The small business completes it and gives it to the lender. The version effective March 19, 2025 shows an expiration date of June 30, 2027. Sources: SBA Form 1919; SOP 50 10 8.1, Appendix 20, Para. A.

Which answers on SBA Form 1919 can stop a loan?

A yes on question 4, about incarceration or certain indictments, makes the applicant ineligible. Yes answers on debarment, federal defaults and restricted revenue can also end or hold up a loan. Others lead to added review or disclosure. Source: SBA Form 1919 (02/2025), questions 1-13.

Is SBA Form 1920 still used on 7(a) loans?

No. SBA's form page says Form 1920, the Lender's Application for Guaranty, was retired as of August 1, 2023. It remains posted for reference only. Lenders now enter loan terms directly in the SBA Loan System (SOP 50 10 8.1, Appendix 20, Para. A).

What is SBA Form 413 and who has to complete it?

SBA Form 413 is the Personal Financial Statement. On 7(a) and 504 loans, each proprietor, general partner, managing member, 20% owner and guarantor completes it. Lenders may use an equivalent form. Sources: SBA Form 413 (05-24); SOP 50 10 8.1, Appendix 20, Para. A.1.c.

How recent must a personal financial statement be for SBA?

SOP 50 10 8.1 says within 90 days. Appendix 20 measures from submission to SBA, and Sec. A, Ch. 5 from loan approval. SBA Form 413 still prints 120 days for 7(a) and 504 loans, so plan around 90.

What happens if you answer yes on SBA Form 912?

It depends on the question. Being incarcerated, serving a sentence or under certain indictments makes the business ineligible under 13 CFR 120.110(n). Child support over 60 days late matters for owners of 50% or more. SBA Form 912 states no result for its riot question.

What rights do you give up when you sign SBA Form 148?

A lot. SBA Form 148 waives rights such as notice of default and many defenses, including that the lender impaired collateral or mishandled a sale. The lender can change the loan terms without your consent, except to raise the amount due. Source: SBA Form 148, paras. 4 and 6.

What does SBA Form 155 require a standby creditor to do?

SBA Form 155 binds a standby creditor to a chosen payment limit, no enforcement until the SBA loan is satisfied, and lien subordination. Payments received in violation must be turned over within 15 days. Source: SBA Form 155 (9/98).

Why does an SBA lender need IRS tax transcripts?

To confirm you filed your business tax returns and that your financial statements match them. Except on SBA Express and Export Express, a 7(a) lender must obtain and reconcile transcripts before first disbursement. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.

How many years of tax transcripts does an SBA lender need?

Three years if you qualify under your NAICS size standard, and two under the alternative size standard, or all years in operation if fewer. Start-Up Businesses are excepted from the three-year rule. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.4.a.

What happens if the IRS has no record of your tax return?

The lender generally cannot disburse until it is resolved. SBA's exception needs proof of filing and proof of payment or refund that reconciles with the return. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Paras. B.4.c and B.4.h.

What if your financial statements do not match your tax returns?

A 7(a) lender must reconcile any discrepancies against IRS transcripts before first disbursement. Significant differences must be resolved to the lender's satisfaction, and to SBA's on non-delegated loans. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.4.

Does an SBA lender verify the seller's tax returns?

Yes. On a change of ownership, the lender must verify the seller's financial data, including a selling sole proprietor's Schedule C. If transcripts cannot isolate a division being sold, other third-party proof is required. Source: SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.3.

How old can financial statements be on an SBA application?

Interim financial statements must be dated within 120 days of submission to SBA. Appendix 20 of SOP 50 10 8.1 also asks for year-end statements for the last 3 years. Personal financial statements follow a shorter 90-day standard.

What is a debt schedule on an SBA loan application?

It is a list of everything the business owes, prepared by you. SOP 50 10 8.1 requires one with the year-end and interim balance sheets on 7(a) loans. The 504 rules spell out each field. Sources: Appendix 20, Para. A.1.d; Sec. C, Ch. 1, Para. F.2.

Do you need a business plan for an SBA loan?

Only when applicable. 13 CFR 120.191 lists a business plan among application contents when applicable. SOP 50 10 8.1 does not list one among the general 7(a) documents. Start-ups need detailed projections, and some export loans need an export business plan.

What documents do you need to buy a business with SBA?

Expect a purchase agreement, a business valuation, a pro forma balance sheet and the seller's statements for 3 years plus interims. Initial Acquisition and Business Expansion deals at $3,000,000 or more also need a Quality of Earnings report. Source: SOP 50 10 8.1, Appendix 20; Appendix 15.

What goes into an SBA 504 loan application?

SBA Form 1244, a credit memo, project cost documents, an appraisal, the third party lender's letter, personal financial statements, credit reports and business financials. The Certified Development Company (CDC) assembles the package. Source: SOP 50 10 8.1, Sec. C, Ch. 1, Para. F.2.