Which answers on SBA Form 1919 can stop a loan?

A yes on question 4 makes the applicant ineligible, and the form says so. Other questions lead to added rules or disclosure. Numbers below refer to SBA Form 1919 (02/2025).

Can end the application

• Question 4. Incarceration or indictment for a felony or financial crime, for the applicant or any Associate (13 CFR 120.110(n)).
• Question 1, debarment. Anyone suspended or debarred may not do business with SBA (SOP 50 10 8.1, Sec. A, Ch. 4, Para. B).
• Question 2. A delinquency or default on a federal loan can trigger the Prior Loss or Delinquent Federal Debt bars (Sec. A, Ch. 1, Para. E).
• Question 7. Certain revenue, such as gambling or material of a prurient sexual nature, can make a business ineligible. Thresholds differ by activity (13 CFR 120.110).

Trigger added review

• Questions 8 to 12. Ties to SBA, Congress, senior federal jobs, advisory councils or SCORE may need Standards of Conduct approval or a statement of no objection (Sec. A, Ch. 4, Para. A).
• Question 13. Legal action, including divorce. The lender must discuss pending litigation in its credit memo (Sec. B, Ch. 1, Para. C.2.a).

Mainly disclosure

• Question 1, bankruptcy. The form asks about any present bankruptcy, and the lender must discuss bankruptcy filings.
• Question 3. Other businesses you own.
• Question 5. Exports.
• Question 6. Fees paid for help with the application.

Answer accurately

A knowing false statement is a federal crime. Penalties under 18 U.S.C. 1001 and 3571 include up to five years in prison, a fine of up to $250,000, or both.