December 19, 2019

Using the Right Forms in the SBA 7a Loan Process

A successful SBA loan requires a mix of due diligence, communication, and documentation. The SBA has many precise rules for documentation and require specific forms for many aspects of the document gathering and verification process. Recently we’ve seen a number of outdated or improper forms accompanying initial loan files. In order to start the process off on the right foot and maintain timelines, it’s important to make sure you are using the right forms in the SBA 7A loan process and that you are using the newest version of those forms.

To help you, below is an outline of the key forms and how to locate the most up-to-date versions.

Required Forms for SBA 7a Loans

Loan Application with Credit Authorization and Business Debt Schedule 

To make things as convenient as possible, our loan application includes a debt schedule and an authorization to pull a credit report for all guarantors and the business, if existing. This is important for determining eligibility, debt to service ratios, and as a list for verifying accounts the borrower wants to include for refinancing. At a minimum, we need a signed and dated debt schedule and credit authorization. 

Personal Financial Statement Form 413

The Personal Financial Statement is one of the key forms that must be submitted by each guarantor/owner that meets the 20% ownership criteria. Additional documentation may be required, especially if there is a bankruptcy or other issue.

Borrower Information Form 1919

The Borrower Information form is required for all guarantors, the borrower’s business entity, key employees, and any affiliates. This is the first step in meeting the character criteria for SBA loans. If there is a criminal history, the guarantor will also need to complete a form 912. 

Statement of Personal History Form 912

For guarantors with a criminal record, they will need to submit both the 1919 and a 912, along with any supporting documentation. This includes court records, proof of completion of any penalties, affidavits, etc. 

Tax Return Transcripts Form 4506T

In order to verify tax returns, we must receive a form 4506T for all guarantors and entities so we can secure official tax transcripts from the IRS. The transcripts are compared to the tax returns provided to ensure all information is true and correct. 

Non-Citizen Verification Form G845

For borrowers who are non-citizens or legal permanent residents, the lender must complete the verification process using the form G845 prior to securing a loan number or submission. The lender is responsible for completing this process and must preregister with the Sacramento SBA office before submitting a guarantor for verification.

Updated Versions of SBA Forms

The SBA regularly updates the standard required forms; however, they are not updated in set intervals. So, it is important to keep up with announcements of new forms either through us or directly from the SBA. You have two options for securing the most up to date form:

  1. Go directly to the web page for the SBA 7a program for lenders on the SBA website. At the bottom of the page is a search bar that allows you to locate the latest forms, SOP, and other documents.
  2. Go to the webpage on the Capital Growth Solutions website page on SBA Loan Resources. Each form is there and is updated as new versions are released. You can also sign up to receive email alerts for changes to the SOP and other useful SBA articles by subscribing to our SBA Lender Newsletter.

As always, if you have any questions about SBA documentation and forms, you may contact us.

About Chuck Evans, CEO

Chuck has 30 years in commercial banking and economic development lending. Prior to joining Capital Growth Solutions, he was President, CEO and Co-Founder of PrudentLenders, LLC. after having previously served as Managing Director for Pennsylvania’s largest Certified Development Company: South Eastern Economic Development Company. Chuck has been an active supporter of small business and an active participant in the industry associations, National Association of Certified Development Companies (“NADCO”) and National Association of Government Guaranteed Lenders (“NAGGL”).

Leave a Reply

Your email address will not be published. Required fields are marked *