SBA Form 1919: Borrower Information Form
Overview
SBA Form 1919 is the standard Borrower Information Form used by the Small Business Administration (SBA) to collect essential information from small business owners applying for 7(a) loans. This form is a critical component of the SBA loan application package and must be completed accurately by all primary borrowers and co-applicants.
Purpose and Authority
Why Form 1919 is Required
The form serves multiple important purposes:
- Credit Analysis: Lenders use information to assess credit risk
- Background Verification: Establishes borrower identity and background
- Financial Assessment: Provides detailed financial and business history
- Compliance: Ensures SBA loan program requirements are met
- Due Diligence: Supports the lending decision process
Federal Authority
- Small Business Act (15 U.S.C. Section 636): Authorizes 7(a) lending program
- 13 CFR Part 120: SBA 7(a) loan program regulations
- SBA Form 919 (Personal Financial Statement): Companion financial document
- SBA Form 413: Alternative personal financial statement
Loan Program Context
7(a) Loan Program Overview
The 7(a) loan program is the SBA's most popular lending program:
- Maximum Loan Amount: $5 million
- Typical Loan Size: $100,000 - $350,000
- Terms: Up to 10 years for working capital, 25 years for equipment/real estate
- Interest Rate: Prime rate plus 2.75% to 5% spread
- SBA Guarantee: SBA guarantees 75-85% of loan amount
- Eligible Uses: Working capital, equipment, inventory, real estate, construction
Borrower Eligibility
Borrowers must meet:
- Business is small per SBA size standards (varies by industry)
- Business is for-profit and operates in the US
- Borrower(s) own at least 20% equity stake
- Owner(s) have been in business or invested in business
- Funds are not used for excluded purposes
- No delinquent federal debt
Form Requirements and Contents
Section 1: Personal Information
Individual Borrower Data:
- Full legal name
- Social Security Number (SSN)
- Date of birth
- Home address and phone number
- Email address
- Citizenship status
- Years at current address
Ownership Information:
- Percentage ownership in business
- Title or position held
- Years in current position
- Years of business experience (total)
Section 2: Business Background
Business Experience:
- Years in current industry
- Types of business experience
- Key skills and expertise
- Management experience
- Prior business ownership
Business Start Date and Structure:
- Date business commenced operations
- Business legal structure (S-Corp, C-Corp, LLC, Partnership, Sole Proprietor)
- Prior business experience as owner
- Prior closing/failure of businesses (if applicable)
Section 3: Credit History
Credit Information:
- Details of credit accounts
- Payment history references
- Credit references
- Explanation of any credit problems
- Status of delinquent accounts
Delinquency Disclosure:
- Currently delinquent accounts
- Past delinquencies (30+ days)
- Foreclosures or repossessions
- Bankruptcies (personal or business)
- Judgments or liens
- Tax liens or IRS disputes
Section 4: Personal Financial Disclosure
Assets:
- Real estate ownership and values
- Cash and savings accounts
- Retirement accounts (401k, IRA)
- Life insurance policies
- Stocks and bonds
- Other valuable assets
Liabilities:
- Mortgages and home loans
- Auto loans and financing
- Credit card debt
- Business loans
- Personal loans and notes
- Contingent liabilities
Net Worth Calculation:
- Total assets minus total liabilities
- Critical for SBA evaluation
Section 5: Prior Business Relationships
Banking Relationships:
- Primary business bank
- Years at current bank
- Checking account balance
- Savings account balance
- Previous banking relationships
Other Loan References:
- Prior SBA loans (if any)
- Other business loans
- Equipment financing
- Personal loans
- Trade credit references
Instructions for Completion
Step-by-Step Guidance
1. Personal Identification:
- Use full legal name (as appears on government ID)
- Provide current SSN
- Enter accurate date of birth
- Use current residential address
- Include daytime phone and email
2. Business Background:
- Be thorough and honest about business experience
- Include all relevant experience, not just current business
- Explain any gaps in business experience
- Document years of relevant industry experience
3. Credit History Disclosure:
- Disclose all delinquencies (30 days or more late)
- Explain reasons for any late payments
- Include status of paid-off delinquencies
- Provide dates and amounts for significant issues
4. Financial Information:
- Provide accurate asset valuations (fair market value)
- Include all significant liabilities
- Be conservative in asset valuations
- Document source of large assets
5. Signatures and Dates:
- All owners (20%+) must sign
- Sign in original ink (not digital)
- Date must be current
- Notarization not required for initial application
Common Completion Errors to Avoid
- Incomplete Information: All sections must be completed
- Inconsistent Data: Ensure consistency with other SBA forms
- Incorrect Dates: Use accurate business start dates and experience timelines
- Asset Undervaluation: Use realistic fair market values
- Missing Disclosures: Disclose all required adverse information
- Illegible Handwriting: Print clearly or type information
- Unsigned Form: All borrowers must sign
Financial Information Requirements
Supporting Documentation
When submitting Form 1919, include:
- Form 913: Personal Financial Statement (SBA equivalent of Form 1919)
- Form 413: Alternative personal financial statement format
- Recent Tax Returns: 2 years of individual 1040 forms with Schedules C/E
- Business Tax Returns: 2 years of business returns (1120, 1120-S, or 1065)
- Bank Statements: Recent business and personal statements (2-3 months)
- Balance Sheet: Current business balance sheet (certified or audited)
- Profit and Loss Statement: Most recent business P&L (monthly or annual)
Asset Documentation
For significant assets disclosed:
- Real Estate: Appraisal, title report, or recent assessment
- Vehicles: Title document or appraisal
- Securities: Brokerage statements
- Retirement Accounts: Account statements
- Business Interests: Ownership documentation or valuation
Disclosure and Honesty Requirements
Material Information Definition
Material information includes:
- Any adverse credit history
- Past business failures or closures
- Tax disputes or liens
- Judgments or lawsuits
- Delinquencies or defaults
- Criminal history (certain offenses)
- Related-party transactions
Consequences of Misrepresentation
Misrepresenting information on SBA Form 1919 can result in:
- Loan Denial: Application immediate rejection
- Loan Rescission: SBA recovery of guarantee if fraud detected
- Civil Penalties: Damages for misrepresentation
- Criminal Penalties: Federal fraud charges possible
- Permanent SBA Ban: Exclusion from future SBA lending
- Legal Action: Lender may pursue recovery of full loan
Duty of Full Disclosure
- All material facts must be disclosed
- Cannot omit adverse information
- Must explain negative information fully
- Lender has right to discover true information
- Federal law requires truthful disclosure
Specific Sections: Detailed Guidance
Business Experience Section
Importance: Lenders evaluate:
- Industry expertise and knowledge
- Relevant management experience
- Track record of success
- Ability to handle business challenges
Recommendations:
- Detail all relevant experience (even from previous employers)
- Highlight key accomplishments and successes
- Explain how experience qualifies you for this business
- Include industry certifications or training
Credit History Section
Lender Evaluation:
- Pattern of on-time payments
- Response to financial difficulties
- Total credit obligations
- Credit score expectations
Disclosure Strategy:
- Proactively disclose all adverse information
- Explain circumstances and resolution
- Provide documentation if available
- Demonstrate responsibility and creditworthiness
Personal Financial Section
Key Metrics:
- Net worth (assets minus liabilities)
- Liquidity (cash and easily liquidated assets)
- Total liabilities relative to income
- Borrower's personal investment in business
SBA Focus Areas:
- Minimum net worth requirements (varies by lender)
- Skin in the game (owner equity investment)
- Ability to support business if needed
- Personal financial stability
SBA Compliance and Regulations
Form Standards
- Must use current SBA Form 1919 (updated periodically)
- Form number and date should be current
- Supersedes prior versions of the form
- Available on SBA.gov website
Processing Timeline
Form 1919 submission timeline:
- Initial Submission: With complete loan application
- Review Period: 1-2 weeks for initial credit analysis
- Follow-up Information: May request clarifications (1 week)
- Approval Decision: 2-4 weeks from complete application
- SBA Review: Additional 1-2 weeks (if SBA direct approval required)
Form 919 Relationship
- Form 913 and 1919: Often used together for personal financial information
- Form 913 Standard: SBA Personal Financial Statement
- Form 1919 Focus: Borrower background and business experience
- Both may be required: Depending on lender and loan size
Common Pitfalls and Solutions
Pitfall 1: Incomplete Business Experience Information
Problem: Vague descriptions of prior business experience
Solution: Document all relevant experience with dates, titles, and accomplishments
Pitfall 2: Underreporting Assets
Problem: Conservative or inaccurate asset valuations
Solution: Use current market values and provide supporting documentation
Pitfall 3: Incomplete Liability Disclosure
Problem: Failing to list all debts and obligations
Solution: Comprehensive list of all current liabilities with creditor details
Pitfall 4: Unexplained Credit Issues
Problem: Credit problems without context or explanation
Solution: Provide detailed explanation and documentation of resolution
Pitfall 5: Inconsistency with Other Forms
Problem: Information conflicts with tax returns or other SBA forms
Solution: Ensure all SBA documents present consistent information
Frequently Asked Questions
Q: Who needs to sign Form 1919?
A: All owners with 20% or more ownership stake must complete and sign the form.
Q: Can I get a loan if I have past credit problems?
A: Yes, if you can explain the issues and demonstrate improvement. Full disclosure is key.
Q: How is credit score evaluated?
A: Most 7(a) lenders require minimum credit score of 680-700, though SBA doesn't mandate minimums.
Q: What if I'm a new business owner with no business experience?
A: Document industry experience, training, education, and mentoring relationships to support qualification.
Q: Must I be a U.S. citizen to qualify?
A: No, you can be a permanent resident alien, but must maintain legal work authorization.
Q: How do I explain a past business failure?
A: Provide full context, lessons learned, and evidence of improved practices going forward.
Q: Can I have someone else sign the form?
A: No, all borrowers must personally sign. A notarized power of attorney is required if unable to sign personally.
Q: Is Form 1919 enough or do I need other financial documents?
A: Form 1919 is the beginning. Complete documentation package is required for underwriting.
SBA 7(a) Loan Application Package
Complete Application Contents
Beyond Form 1919, a complete SBA 7(a) application includes:
- SBA Form 413 or 913: Personal Financial Statement
- SBA Form 1919: Borrower Information Form (this form)
- Business Plan: Overview of business and use of funds
- Personal Financial Statements: For all owners 20%+
- Business Tax Returns: 2 years (copies)
- Personal Tax Returns: 2 years (copies)
- Detailed Use of Proceeds: Breakdown of loan use
- Lease or Rent Documentation: Current business location
- Personal Resume: For primary borrower
- Business Plan/Projections: For new businesses
Resources and Support
SBA Resources
- SBA.gov: Official form repository and guidance
- SBA Lender Directory: Find certified 7(a) lenders
- SBA One-on-One Mentoring: SCORE or SBA resources
- Business.gov: General business resources
Professional Assistance
- SBA-Certified Intermediaries: Provide application assistance
- Business Accountants: Ensure financial accuracy
- Small Business Attorneys: Advise on legal structure and compliance
- SBA Lenders: Provide specific guidance on their requirements
Educational Resources
- SBA Webinars: Loan program training
- Business Development Courses: SBDC training centers
- Women's Business Centers: Targeted assistance programs
- Veterans Business Centers: Assistance for veteran owners
Key Takeaways
SBA Form 1919 is a critical component of 7(a) loan applications. Accurate, complete, and honest completion of the form is essential for:
- Successful Loan Approval: Required component of complete application
- Favorable Loan Terms: Better disclosure supports negotiation
- Regulatory Compliance: Meets federal SBA requirements
- Lender Confidence: Demonstrates transparency and honesty
Taking time to properly complete Form 1919 with accurate information and supporting documentation significantly improves the likelihood of loan approval and favorable terms for small business financing.