# Which answers on SBA Form 1919 can stop a loan?

**Short answer:** 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.

Canonical page: https://www.sbaexpress.loans/answers/which-sba-form-1919-answers-can-stop-a-loan/
Last checked: 2026-11-09

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.

## Sources

- [SBA Form 1919 (02/2025), Borrower Information Form](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)
- [13 CFR § 120.110](https://www.ecfr.gov/current/title-13/section-120.110)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Paras. A and B (pp. 59-60)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E (Para. E begins p. 18)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 1, Para. C.2.a (about p. 121)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)