SBA Form 1050: Settlement Sheet (Use of Proceeds Certification)
Short answer
SBA Form 1050 is the Settlement Sheet (Use of Proceeds Certification). The lender completes it, and the lender and borrower both sign it at first disbursement. SBA does not require it on SBA Express, Export Express or 7(a) Small loans (SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.3.b).
Edition in use
SBA Form 1050 (10-31-2025), effective December 20, 2023. OMB 3245-0200. The printed expiration of October 31, 2025 has passed, and we found no later OMB approval as of November 9, 2026. SBA still lists this version.
Who completes it
The lender completes it, and the lender and borrower both sign it. The lender may use its own equivalent form (SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.3.b). SBA does not require it on SBA Express, Export Express or 7(a) Small loans (Para. D.3.b).
When it is used
At first disbursement. Later disbursements are documented and attached to the original form.
What it asks
- The SBA loan number, lender name and location ID, loan name, note amount, and whether it is a term loan or line of credit.
- Each authorized use of proceeds, with the payee, amount disbursed and amount remaining.
- Settlement charges and out-of-pocket costs, with an itemized list attached.
- Your equity injection by source: cash, assets, seller contribution on full standby or other.
- Certifications that proceeds are used as authorized, required injections were made, and there is no unremedied adverse change since the application.
- Signatures of an authorized lender official and the borrower.
A filled-in example
This example is made up. Sample Bakery LLC, the people, the lender and every figure are fictional, and the ID numbers are zeros. It shows what finished entries look like, using the form's own field names.
| Field on the form | Example entry |
|---|---|
| SBA Loan Number | 0000000000 |
| Lender Name | Example Bank |
| Lender FIRS/Location ID Number | 000000 |
| SBA Loan Name/Borrower Name | Sample Bakery LLC |
| Note Amount | $150,000 |
| Loan Type | Term Loan |
| Disbursement Type | Full Disbursement |
| Machinery & Equipment: Name of Payee, Amount Disbursed, Authorized Amount Remaining | Example Oven Supply Co., $90,000, $0 |
| Working Capital: Name of Payee, Amount Disbursed, Authorized Amount Remaining | Sample Bakery LLC, $57,000, $0 |
| Settlement Charges/Out of Pocket Costs | $3,000, with an itemized list attached |
| Total | $150,000 disbursed, $0 remaining |
| Borrower's Injection: Cash Source | $15,000 |
| Total Borrower Injection | $15,000 |
| Signatures | An authorized official of Example Bank and Pat Sample for Sample Bakery LLC |
An example only. Use your own facts on the real form, and check that your copy is the edition named above.
Common mistakes
- Naming an intermediary as payee. The form requires the ultimate recipient, not a title company or similar go-between.
- Disbursing before your injection is in. It must be in the business bank account before any loan proceeds go out (Form 1050 instructions).
- Counting a seller note without proof. Attach the note and evidence of full standby for the life of the loan (Form 1050 instructions).
- Lumping settlement costs together. Attach an itemized list with each payee and amount (Form 1050 instructions).
- Signing despite an adverse change. You certify there is no unremedied adverse change in the business since the application.
- Throwing out receipts. The lender needs proof such as cancelled checks or paid invoices. Working capital for normal operating expenses is the exception (Sec. B, Ch. 6, Para. D.3.c).
- Expecting it on every 7(a) loan. SBA's page says all 7(a) loans, but the form says standard 7(a) loans and the SOP excepts three programs (Para. D.3.b).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.