SBA Form 1919 is the borrower information form that every applicant for a 7(a) loan must complete, along with each of the business’s key owners and guarantors. It collects the background the Small Business Administration and its participating lenders need to decide whether a business and the people behind it qualify for a federally guaranteed loan of up to $5 million with terms as long as 25 years.1U.S. Small Business Administration. Terms, Conditions, and Eligibility The form is the entry point to the 7(a) program, and the answers on it determine whether an application moves forward, gets slowed down, or fails outright.
Who Has to Sign the Form
Federal regulations require a Form 1919 from each “associate” of the applicant business. An associate is any officer, director, or owner of more than 20% of the equity, plus any key employee.2eCFR. 13 CFR 120.10 – Definitions Anyone guaranteeing the loan must also complete the form regardless of ownership percentage.
If another entity owns the applicant, the authorized representatives of that parent company have to be identified as well. Every qualifying person or entity signs to certify that the information given is accurate.
Business Information the Form Requests
The first part of the form asks for the applicant’s legal name (as it appears on articles of incorporation or other organizational documents), Employer Identification Number, and physical street address. A P.O. box is not acceptable. You also enter the NAICS code that describes what the business does, which the SBA uses to check size eligibility.
Size standards vary by industry. Some are measured by annual revenue and others by employee count, and you have to include the revenue and employees of any affiliated businesses in the calculation. The SBA’s website has a lookup tool that returns the exact cutoff for your NAICS code.3U.S. Small Business Administration. Size Standards
Affiliation is where many applicants stumble. The SBA treats two businesses as affiliated when one controls or has the power to control the other, whether or not that power is ever used. Shared management, ownership of 50% or more of another entity, family members running related businesses that work together, and even a minority shareholder’s ability to block board actions can all establish affiliation.4eCFR. 13 CFR 121.103 – How Does SBA Determine Affiliation?
Franchise and Export Questions
Question 5 asks about franchise, license, or distributor agreements, and requires you to attach copies of any such agreements.5Small Business Administration. SBA Form 1919 Borrower Information Form Franchise brands that meet the FTC’s definition of a franchise must appear on the SBA Franchise Directory for the loan to be eligible; the directory confirms the SBA has already reviewed the brand.6U.S. Small Business Administration. SBA Franchise Directory
Businesses that already export, plan to begin exporting with loan proceeds, or are applying under the Export Working Capital Program have to provide estimated export sales supported by the loan and the principal destination countries.
Use of Proceeds and Ineligible Businesses
The form asks how the loan money will be used. Under federal regulations, 7(a) proceeds may go toward acquiring or improving real estate, buying equipment, purchasing inventory and supplies, working capital, and refinancing certain existing debts.7eCFR. 13 CFR 120.120 – What Are Eligible Uses of Proceeds?
Some businesses cannot receive a 7(a) loan no matter how the funds would be spent. The ineligible list includes nonprofits, financial businesses primarily engaged in lending, passive real estate holding companies (with narrow exceptions), pyramid sales operations, businesses that get more than a third of their revenue from gambling, businesses engaged in illegal activity, speculative ventures such as oil wildcatting, and businesses primarily engaged in lobbying or political activity.8eCFR. 13 CFR 120.110 – What Businesses Are Ineligible?
Personal Information for Each Principal
Every principal listed on the form provides a full legal name, Social Security Number, current residential address, place of birth, and citizenship status. Lawful permanent residents supply their Alien Registration Number. The SBA uses this information to confirm residency eligibility for federally backed financing.
The Three Criminal History Questions
Three questions cover criminal history, and each carries different consequences.
Question 17 asks whether you are currently subject to an indictment, arraignment, or other formal criminal charges. A “Yes” makes the loan request ineligible. There is no workaround.5Small Business Administration. SBA Form 1919 Borrower Information Form
Question 18 asks whether you have been arrested for any criminal offense in the past six months. Question 19 asks whether you have ever been convicted, pleaded guilty, pleaded no contest, been placed on pretrial diversion, or been placed on parole or probation for anything beyond a minor traffic violation.
A “Yes” on Question 18 or 19 doesn’t end the application on its own. It does trigger extra review: you’ll attach a detailed written explanation, and the SBA will begin a character determination that involves completing Form 912 (Statement of Personal History), which authorizes the SBA to request your criminal history records from the FBI.9Reginfo.gov. Supporting Statement for Requests for OMB Approval: SBA Form 912, Statement of Personal History
Beyond Question 17, one more hard line exists: a business is ineligible if an associate is currently incarcerated or under indictment for a felony or any crime involving financial misconduct or a false statement.8eCFR. 13 CFR 120.110 – What Businesses Are Ineligible? A 2024 rule change removed the previous automatic ban on applicants who were on parole or probation. Being on parole or probation now requires a full character review but is no longer an automatic disqualifier.
Conflict of Interest Questions
Questions 12 through 16 screen for conflicts with federal employees. The SBA will not provide financial assistance where there is even an appearance of a conflict with an SBA or other federal employee.5Small Business Administration. SBA Form 1919 Borrower Information Form
These questions ask whether any owner, officer, or director with at least a 10% stake (or a household member of that person) is a current or recently separated SBA employee, a member of Congress, a federal employee at GS-13 or above, or a member of a Small Business Advisory Council or a SCORE volunteer. A “Yes” to most of these means the loan cannot go through fast-track delegated processing and must be routed through the SBA’s standard non-delegated review. It adds time but does not automatically end the application.
Financial History and Federal Debt
The form asks whether you have ever defaulted on a federal loan or received other federal financial assistance. Your answers get cross-referenced against the Credit Alert Verification Reporting System (CAIVRS), a shared federal database of people who have defaulted on or had claims paid on government-backed loans.10U.S. Department of Housing and Urban Development. Credit Alert Verification Reporting System (CAIVRS) The SBA can waive a prior default for good cause, but the underlying regulation makes clear that businesses previously responsible for a loss to any federal lending program are generally ineligible.8eCFR. 13 CFR 120.110 – What Businesses Are Ineligible?
Bankruptcy history is also disclosed. A prior filing is not an automatic rejection, but the lender will typically ask for documentation of the circumstances and proof of discharge if the case is closed.
Any person who owns 50% or more of the applicant business must certify they are not more than 60 days delinquent on child support, whether the obligation comes from a court order, an administrative order, or a repayment agreement with a custodial parent or state agency.11eCFR. 13 CFR 120.171 – Compliance With Child Support Obligations The threshold for this certification is 50% ownership, not the 20% threshold that governs most of the other disclosures on the form.
Disclosing Agent and Packager Fees
If you paid a consultant, broker, or loan packager to help prepare the application, those fees have to be disclosed separately on SBA Form 159. The requirement covers loan packaging, financial statement preparation done specifically for the loan, and any consulting or referral fees paid by you or the lender. Since April 2021, Form 159 must be submitted digitally through the SBA’s Capital Access Financial System; paper and email submissions are no longer accepted.12U.S. Small Business Administration. Form 159 Submission Change Skipping this disclosure is a common way to blow up an otherwise clean file.
What Happens After You Submit
Signed forms go to your SBA-participating lender, who folds the information into their own underwriting and pulls credit and public records on each principal. The lender then transmits the application to the SBA through E-Tran, the agency’s electronic loan processing system. Processing runs anywhere from a few business days to several weeks depending on complexity. If something on the form doesn’t match a third-party record, the lender will come back for clarification.
A clean SBA review produces an SBA loan number, meaning the federal guarantee is in place and the lender can fund the loan. Responsiveness during this window matters: a slow reply to a routine question can stall the file.
If the Application Is Denied
A denial isn’t necessarily final. If your lender believes you can address the reasons for the decline, they can submit a reconsideration request to the SBA within six months of the denial date. The request must explain how the issues have been resolved, and if more than 120 days have passed, updated financial statements are required.
You may also approach a different SBA-approved lender, but you have to disclose the prior denial. Underwriting appetites differ, so a decline from one lender doesn’t necessarily mean a decline from the next.
Penalties for False Statements
Lying on Form 1919 is a federal crime. Submitting false, fictitious, or fraudulent information on any matter within the jurisdiction of the federal government carries penalties of up to five years in prison and fines up to $250,000.13Office of the Law Revision Counsel. 18 USC 1001 – Statements or Entries Generally14Office of the Law Revision Counsel. 18 USC 3571 – Sentence of Fine The SBA verifies answers against FBI records, credit databases, and other federal systems. Omitting a prior conviction or misstating an ownership structure creates criminal exposure that runs well past a denied loan.