# Why does an SBA lender need IRS tax transcripts?

**Short answer:** 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.

Canonical page: https://www.sbaexpress.loans/answers/why-sba-lenders-need-irs-tax-transcripts/
Last checked: 2026-11-09

SBA uses transcripts to confirm two things. One is that you filed business tax returns. The other is that your financial statements agree with what you filed (SOP 50 10 8.1, Sec. A, Ch. 5, Para. B.1, p. 95).

## Why it matters

If you have not filed required federal returns, you are not eligible (Para. B.2). On a 7(a) loan, the lender must obtain transcripts and reconcile discrepancies before first disbursement. On a 504 loan, the deadline is before the request to fund the debenture (Para. B.4).

## How the lender gets them

- The IRS Income Verification Express Service, directly or through a participant.
- IRS Form 8821, fully completed and sent to the IRS.

The transcript requested must show any changes to the original return (Para. B.4.b). On a sole proprietorship, the lender verifies Schedule C (Para. B.3).

## What you sign

The lender needs IRS Form 4506-C or Form 8821 (Sec. B, Ch. 6, Para. D.4). On Form 1919, you consent to the lender sharing tax information with SBA and its Inspector General.

## Express loans

SBA Express and Export Express have their own rules (Para. B.4.g).

## U.S. territories

A U.S. territory business that is not required to file federal returns is handled differently. The lender verifies receipt-stamped returns filed with the territory's tax authority.

## Sources

- [SOP 50 10 8.1, Sec. A, Ch. 5, Para. B (pp. 95-96)](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. 6, Para. D.4 (about p. 213)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Form 1919 (02/2025), Borrower Information Form](https://legacy.sba.gov/document/sba-form-1919-borrower-information-form)