The Small Business Administration and lenders who provide SBA loans ask applicants to complete Form 1919 as a required part of the application process. This article gives you clear information about the form that isn’t in financial industry language, and step-by-step guidance to help you complete the form successfully.
What is Form 1919 and how is it used?
SBA Form 1919 is a Borrower Information Form. Form 1919 is required if you’re applying for an SBA 7(a) loan. It collects all of the information the SBA needs to perform a complete background check for a potential borrower, including:
- Your background
- Co-owners/co-applicants and other major players involved in running your business
- Other companies that may be influential in your business in the long term
- Existing debt
- Other sources of government financing your business has received or will receive in the near future
All of these factors come together to give the SBA lender a comprehensive picture of your business’ health. This is important, since the lender needs to be as sure as it can that your business has a strong enough foundation to be open for the length of the loan repayment period.
Sections in SBA Form 1919
Form 1919 is divided into sections. Depending on your business structure, you may have to complete multiple versions of certain sections.
Section I: Business Information – This section is 4 pages long. The first page asks for detailed identifying information about the business, a breakdown of the requested loan amount and how it will be used, and the business ownership structure. Owners can include, business partners, officers, directors and stockholders, and the columns must total 100%.
When do you need an additional Section I form?
If another business is a co-applicant, you must submit a separate Section I form for that business, and it must be completed by an authorized representative of that business. On the second page of Section I, the first question asks if there will be any co-applicants. If the answer to that question is “yes”, you will need a separate Section I.
Section I includes a page of Yes or No questions. You should know that, if you answer “yes” to question 17, which asks about criminal charges or indictments, your application will be denied.
Section II: Individual Owner Information – This section is 3 pages long. Section II asks for personal information for each of business’s principals. A separate 3-page section must be completed for each principal. These include:
- Partners owning at least 20% equity
- Partners involved in the business’s management
- Owners with at least 20% stake
- Managing members
- Individuals who manage day-to-day operations
- Trustor, if the business is owned by a trust
Section III: Entity Owner Information – This section is 2 pages long. This is used if the business is owned completely or in part by another business, or entity, not a person. It also asks for the proprietors, partners, officers, directors, members, trustees and outstanding stock holders of that entity.
While this can feel like a lot of paperwork and information, completing this form correctly the first time will avoid delays in your SBA loan application. To help you field by field, we have provided the video below to guide you through.
One last note before you view the step-by-step video! This form must either be signed through Docusign, or with a wet signature. An electronic signature will not be accepted.