SBA FORM 1920 Lender's Application for Loan Guaranty

Lender’s Application for Loan Guaranty
For all 7(a) Loan Programs

OMB Control No.: 3245-0348
Expiration Date: XX/XX/XXXX

The purpose of this form is to collect identifying information about the Lender, information about the loan guaranty request, sources and uses of
funds, the proposed structure (which includes pricing and the loan term), the Small Business Applicant, and compliance with SBA Loan Program
Requirements. Submission of the requested information is required for SBA or the Lender to make a determination regarding eligibility for financial
assistance and the appropriate processing method (delegated or non-delegated). Failure to submit the information would affect those determinations.
Instructions for Lenders:
•

For all loans submitted to the 7(a) Loan Guaranty Processing Center (“LGPC”), by Delegated and Non-Delegated Lenders: This form is to
be completed, in its entirety, signed and dated prior to electronic submission to the LGPC. The original of this form must be retained in
your loan file.
Submission instructions are provided at https://www.sba.gov/sites/default/files/forms/LGPC_Submission_Instructions.pdf.

•

For all loans processed under delegated authority (PLP, SBA Express, Export Express, PLP–EWCP, and Community Advantage delegated
authority): This form is to be completed, in its entirety, signed and dated, and retained in your loan file.

Processing Options (if applicable)

A. Processing Method

 7(a) Small Loan ($350,000 or less with an acceptable credit score)


7(a) Non-Delegated
Processing

CAPLINE Program

 Working Capital
 Seasonal

7(a) Delegated
Processing
B.

Applicant Business

Export Express

 Revolving
 Term Loan

 Revolving
 Term Loan

 International Trade Loan
 Export Working Capital Program (EWCP) Loan
 Community Advantage (CA) Pilot Program ($250,000 or less with an acceptable credit score)
 Other (Explain):



Applicant Business Information
Date Business Established:
 Startup Business (Not opened yet)  Existing Business (more than 2 years old)
Date
Current
Ownership Established:
 New Business (2 years or less)
 Change of Ownership
Applicant Business Legal Name:
NAICS Code:
 Check if EPC
DBA:

Business Tax ID:

Applicant Address:
Business Location:  Rural

 Urban

City, ST, Zip:
Legal Structure:

Applicant Primary Contact:
# of employees prior to this loan:

Other

SBA Express

 Builders
 Contract

 Sole Proprietor  Partnership  Corp  LLC  Other

Primary Contact Phone:
# of jobs created because of this loan:

 OC /  Co-Applicant:

(

)

-

# of jobs retained because of this loan:

 Sole Proprietor  Partnership  Corp  LLC  Other

Co-Applicant Address:

Business Tax ID:

City, ST, Zip:

Date Established:
*Use a separate sheet if more than two Applicants

C.

Lender Information
Lender Name:
Address:
Lender Contact:

Lender ID:
City:
Ph:

(

ST:
)

-

Contact Email:

Cell or Ext: (

Zip:
)

-

Title:

Alternate Contact Information ( Check if this contact will be the primary contact for loan processing information)
Alternate Name (if other than Lender):
Contact Type:  Lender Employee  LSP
Alternate Contact:

Ph:

Alternate Contact Email:

SBA Form 1920 (05/17)

(

)

-

Cell or Ext: (
Title:

P a g e |1

)

-

D.
Amount of Loan Request:

$

Loan Structure Information
Guarantee %:
% Loan Term in # of Months:

Payment:

$

Rate Structure (rates may have one rate for the full loan amount or separate rate structures for the guaranteed and unguaranteed portions)
Period

Rate Type

Which Part of Loan

Base Rate

Base Rate

Spread %

Full Rate

 Variable  Full  Guaranteed
 Prime  SBA LIBOR  SBA Peg Rate
 Fixed
 Un-Guaranteed  Fixed Base Rate  Other (explain in Credit Memo)
 Variable  Full  Guaranteed
 Prime  SBA LIBOR  SBA Peg Rate
2
 Fixed
 Un-Guaranteed  Fixed Base Rate  Other (explain in Credit Memo)
Frequency that Rate will Adjust:  Monthly  Quarterly  Calendar Quarter  Annually  Other (explain in Credit Memo)
1

When will first adjustment occur: (see SOP 50 10 “SBA requirements for SBA Note”)
E.
Complete Project Information ($ in thousands & must be supported in lender credit memo)
Use of Proceeds (Sources and Uses)
SBA 7(a) Loan
Other Financing
Borrower Injection
$
$
$
Land Acquisition (  with or  without improvements)

$

 New Construction  Expansion  Renovations

$

$

$

$

Total for Line

Leasehold Improvements to property owned by others

$

$

$

$

Machinery & Equipment

$

$

$

$

Furniture & Fixtures

$

$

$

$

Inventory Purchase

$

$

$

$

Working Capital

$

$

$

$

Acquire Business ( Asset or  Ownership Interest)

$

$

$

$

Pay off SBA Loan ( SID /  Other Lender /  Both)

$

$

$

$

Pay Notes Payable ( SID /  Other Lender /  Both)

$

$

$

$

Pay Accounts Payable

$

$

$

$

SBA Guarantee Fee

$

$

$

$

Other (explain):

$

$

$

$

Other (explain):

$

$

$

$

Total (sum of last column should match sum of first 3 across):

$

$

$

$

Will more than $10,000 of the loan proceeds be used for construction/renovation? (If “Yes,” SBA Form 601 must be completed.)

 Yes

 No

 Yes

 No

F. Fees paid to others
Has the Applicant paid or committed to pay a fee to the Lender or a third party to assist in the preparation of the loan
application or application materials, or has the Applicant or Lender paid or committed to pay a referral agent or broker a
fee?

•

If “Yes,” SBA Form 159(7a) must be completed, signed by all parties and a copy provided to SBA’s fiscal and transfer agent after initial
disbursement in accordance with SOP 50 10.

G. General Eligibility (If either of the questions below are answered “No,” the request is not eligible for an SBA guaranty.)

•

•

Small Business Applicant is (1) an operating business (except for loans to Eligible Passive Companies, discussed
below), (2) organized for profit, (3) located in the United States and its territories or possessions, (4) small (as
defined by 13 CFR Part 121), and (5) able to demonstrate a need for the desired credit.

 Yes

 No

The Small Business Applicant’s products and/or services are available to the general public.

 Yes

 No

 Yes

 No

H. Credit Not Reasonably Available Elsewhere

•

Lender has assessed the Small Business Applicant’s access to credit outside of this SBA-guaranteed loan and
determined that such credit is not available elsewhere on reasonable commercial terms from non-Federal sources.
The Lender’s loan file contains documentation that specifically identifies the factors in the present financing that
meet the credit elsewhere test and the Lender’s credit memorandum includes the credit elsewhere analysis and
supporting documentation to substantiate Lender’s determination.

SBA Form 1920 (05/17)

Page | 2

I.

Size Analysis

If the Applicant is an existing business that is applying for a SBA loan to acquire another business, the two businesses are combined to determine
whether or not the Small Business Applicant is small. If an application is for an EPC/OC, refer to the size determinations under the EPC rule in the
current SOP 50 10. If the Small Business Applicant has Affiliates, please provide a list, including Affiliate name and tax ID #, and discuss possible
bases of affiliation. If an affiliation exists complete a Size Analysis for each affiliate.

Use this size standard 
Primary Industry
NAICS Code
Average annual receipts over the last three completed fiscal years per Federal Tax Return (exclude affiliates)

$

SBA Size Standard based on NAICS (The standards are found in 13 CFR 121.201)
Number of Employees

Use the Alternative size standard 
$

OR
Tangible Net Worth is (not in excess of $15 million) and

Average net income after Federal Income Taxes (excluding any carry over losses) for preceding 2 completed fiscal
years is not in excess of $5.0 million. (The alternative size standard is found at §3(a) of the Small Business Act.)

$

The combined size calculation of applicant and its affiliates meets the size standard for the applicant’s primary industry or the size
standard for the primary industry of the applicant and its affiliates, whichever is higher (13 CFR 121.104);

 True

OR
The combined size calculation of applicant and its affiliates meets the alternative size standard.
If size standard is exceeded by no more than 25%, Applicant agrees to use the loan proceeds within a labor surplus area.

 True
 True

J. Required Guarantors

•

All owners with an interest of 20% or more in the Small Business Applicant will guarantee the loan. The 20% threshold includes a spouse
owning 5% or more when the combined ownership of both spouses is 20% or more. Only ESOPs and/or eligible 401(k) Trusts are
excluded from this requirement. (Sole proprietors are not required to provide a personal guaranty because they execute the Note as the
 True
borrower.)

K. Associates of the Applicant
Character

 Lender has verified that on SBA Form 1919, Question 17 (or C.2.e on EIB-SBA Form 84-1 for EWCP loans) is not


answered “Yes,” otherwise the loan is not eligible.
If, on SBA Form 1919, Question 19 (or C.2.e on EIB-SBA Form 84-1 for EWCP loans) is answered “Yes,” answer the
following:

 Lender has verified that the individual who answered “Yes” to Question 19 is currently not on parole or probation.
If the answer to this statement cannot be answered “True,” the loan is not eligible.

•

 True

 True

The applicant meets ONE of the following criteria below (if cannot be answered “True”, the loan is not eligible):

 Lender has retained the supporting information and court documentation, including the original SBA Form 912, in
its loan file and determined that all disclosed crimes were misdemeanors fully dispositioned by the court more than
6 months ago and there were no convictions for crimes against minors.

 True

 Lender submitted SBA Form 912 and all supporting documentation to the SBA field office serving the territory
where the Small Business Applicant is located and has subsequently received written clearance of the character
issue(s) from SBA headquarters through the SBA field office.

 True

OR

 Loan is being processed on a delegated basis and the SBA Form 912 and all supporting documentation has been
submitted directly to SBA headquarters and Lender has subsequently received written clearance of the character
issue(s) from SBA headquarters through the SBA field office.

SBA Form 1920 (05/17)

Page | 3

 True

L. Types of Ineligible Businesses (check the SOP and CFR for current guidance)
Lender has reviewed the Small Business Applicant and has determined it is not an ineligible business:
1.
2.

3.

4.
5.
6.
7.

8.
9.
10.
11.
12.
13.
14.
15.

M.

 True

A non-profit Business (for-profit subsidiaries are eligible)
A financial business primarily engaged in the business of lending, e.g. banks, life Insurance companies (independent agents may be
eligible), finance companies, factoring companies, investment companies and other businesses whose stock in trade is money and which
are engaged in financing.
a. A pawn shop where more than 50% of its revenue for the previous year was from interest on loans.
b. A mortgage service company where any loans funded are not sold within 14 days of loan closing.
A passive business owned by developers or landlords that do not actively use or occupy the assets acquired or improved with the loan
proceeds that is not an Eligible Passive Company (discussed below).
a. A motel, recreational vehicle park, campground, marina or similar type of business that derives more than 50% of its gross
annual revenue from transients who stay for periods of time exceeding 30 days.
b. A business primarily engaged in sub-dividing real property into lots and developing it for resale on its own account or in owning
or purchasing real estate and leasing it for any purpose.
A business located in a foreign country or owned by undocumented (illegal) aliens.
A pyramid sale distribution plan.
A business involved in any illegal activity.
A business principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or
secular setting. If the Applicant appears to be connected, associated, or affiliated with a religious organization or to have a religious
component, the Lender must complete SBA Form 1971, Religious Eligibility Worksheet.
A consumer or marketing co-operative.
A business that earns 1/3 or more of its gross annual revenue from packaging SBA loans.
A business that derives directly or indirectly more than 5% of its gross revenue through the sale of products or services, or the presentation
of any depiction or displays, of a prurient sexual nature or that presents any live performances of a prurient nature.
A business primarily engaged in political or lobbying activities.
A speculative business (such as mining, and research & development).
A business that derives more than 1/3 of gross annual revenue from legal gambling, or is a racetrack, casino or otherwise has gambling as
its primary reason for being.
A private club or business that limits the number of memberships for reasons other than capacity.
A Government-owned entity (except for businesses owned or controlled by a Native American tribe, but is a separate legal entity from the
tribe).

 Employee Stock Ownership Plan (“ESOP”) - Complete if the Small Business Applicant is a Qualified Employee Trust or
equivalent trust. (All questions below must be answered as TRUE to be eligible.)

•

•
•

The Qualified Employee Trust (or equivalent trust) meets the requirements and conditions for an ESOP prescribed in all
applicable IRS, Treasury and Department of Labor regulations AND the small business will provide the funds needed by the
trust to repay the loan and will provide adequate collateral.

 True

Loan will help finance the growth of the Qualified Employee Trust’s employer’s small business or will purchase ownership
or voting control of the employer.

 True

Loan proceeds will be used to purchase: 1) qualified employer securities; or 2) a controlling interest (51% or more) in the
employer (ownership and control will vest in the trust by the time the loan is repaid).

 True

N. Citizenship
The Small Business Applicant is at least 51% owned and controlled by US citizens and/or by persons who meet one of the following conditions
(if neither applies, the loan is not eligible).

o

The business is at least 51% owned by individuals who are  U.S. citizens and/or who have  Lawful Permanent Resident
(LPR) status, whose status the lender has verified with the USCIS through the SBA, AND will control the management and
daily operations of the business;

 True

OR

o

The business is at least 51% owned by aliens with an alien status other than LPR, which the lender has verified with the
USCIS through the SBA; the lender has determined that continual and consistent management of the business has been
provided by a U.S. citizen or by an LPR, whose status lender has verified with the USCIS through the SBA, for at least one
year and will continue indefinitely; AND collateral within the jurisdiction of the U.S. is pledged that meets the requirements
of SOP 50 10. (Businesses less than one year old do not meet these requirements.)

SBA Form 1920 (05/17)

Page | 4

 True

O.

 Change of Ownership – Complete this section for all changes of ownership (including between existing owners) to
determine type of business valuation needed and eligibility.

If part of the Use of Proceeds will be used to fund or refinance a change in ownership:
•

The change will promote the sound development or preserve the existence of the Applicant business.
(If “No,” the loan is not eligible.)

 Yes

 No

•

The change is between existing owners of the small business and will result in 100% ownership by the remaining
owner(s) or is the purchase of 100% of a business resulting in a new owner and meets the requirements provided in
the SOP 50 10. (If “No,” the loan is not eligible.)

 Yes

 No

•

The loan proceeds will not pay off an SBA-guaranteed loan of the seller with the same lender.
(If “No,” application may not be processed under delegated authority.)

 Yes

 No

•

The loan proceeds will not finance any amount in excess of the business valuation. (If “No,” the loan is not
eligible.)

 Yes

 No

•

A business broker will receive a commission from the sale of the business paid by the Applicant.

 Yes

 No

If “Yes,” Name of Business Broker Firm:

Representative:

Firm Address:

Commission $

P. Type of Business Valuation Requirements – (use worksheet to determine what type of business valuation is required)
Less down payment paid to Seller:

$
-$

Less buyer injection :

-$

Total Amount being Financed (including 7(a), 504, Seller or Other financing) (A):

$

Appraised Value of Commercial Real Estate being financed in purchase of /or with the business (B):
Appraised Value of equipment being financed in the purchase of the business (C):

-$
-$

Value of intangible assets to be Financed (A) – (B) – (C) = (D):

$

Total Purchase Price to be paid to seller per purchase contract:
Source & Type of Injection:

If the value of (D) above is $250,000 or less AND there is not a close relationship between Buyer & Seller, you have included an
internally prepared business valuation that supports the value being paid for the business?
OR



If the value of (D) above is over $250,000 OR there is a close relationship between Buyer & Seller, you have obtained an
independent business valuation from a qualified source that supports the value being paid for the business? (For loans processed
under lender’s delegated authority, the independent business valuation has been or will be obtained prior to closing/disbursement.)



Q. Financing of Intangible Assets – (choose one below)
The purchase price of the business does not include intangible assets (including, but not limited to, goodwill, client/customer lists,
patents, copyrights, trademarks and agreements not to compete) in excess of $500,000.



OR
The purchase price of the business includes intangible assets (including, but not limited to, goodwill, client/customer lists, patents,
copyrights, trademarks and agreements not to compete) in excess of $500,000 and the borrower and/or seller are contributing at
least 25% equity. (If less than 25% equity, this loan may not be processed under delegated authority.)



R. Franchise/License/Jobber/Membership or Similar Agreement

•

Does the applicant business operate under a Franchise/License/Jobber/Membership or similar Agreement?
Tradename under the Agreement:

 Yes

 No

Franchise Identifier Code:

For non-delegated loans, the Lender must submit a copy of the agreement and the SBA Addendum (SBA Form 2462) or the Certification (SBA
Form 2463) and SBA Negotiated Addendum (whether executed or not), along with any related documents the franchisor requires the franchisee
to execute with their loan documentation to the LGPC.
When processing under its delegated authority, the Lender must obtain an executed copy of the franchise agreement, either the executed SBA
Addendum (SBA Form 2462) or Certification (SBA Form 2463) and SBA Negotiated Addendum, and all other documents the franchisor
requires the applicant franchisee to sign prior to any disbursement. The Lender must ensure that the system meets all SBA eligibility
requirements and must review all other documents the franchisor requires the applicant franchisee to execute to ensure compliance with either
addendum and SBA Loan Program Requirements (e.g., there are no restrictions recorded against the real estate).

SBA Form 1920 (05/17)

Page | 5

S.

 Loan is to an Eligible Passive Company (“EPC”) If any statement cannot be answered “True,” the loan is not eligible.
• The EPC will use the loan proceeds to acquire or lease, and/or improve or renovate real or personal property (including
 True
eligible refinancing) that it leases 100% to one or more OCs.

•

The OC is an eligible small business and the proposed use of proceeds would be an eligible use if the OC were obtaining the
financing directly.

 True

•

The EPC (with the exception of a trust) and the OC each are small under SBA’s size standards.

 True

•

The EPC is eligible as to type of business, other than being passive.

 True

The lease between the EPC and OC will be in writing, will have a remaining term at least equal to the terms of the loan
(including options to renew exercisable solely by the OC), will be subordinated to SBA’s lien on the property and the rents
will be assigned as collateral for the loan. (Lender must obtain an executed copy of the lease prior to any disbursement.)

 True

The OC will be a guarantor or a co-borrower. (If loan proceeds include working capital or assets to be owned by the OC, the
OC will be a co-borrower.)

 True

Each 20% or more owner of the EPC and each 20% or more owner of the OC will guarantee the loan.

 True

The aggregated amount of the SBA portions for this application and for all outstanding loans to the EPC, the OC, and their
affiliates does not exceed $3,750,000. ($4,500,000 for International Trade (IT) and EWCP loans - The amount guaranteed
for working capital for the IT loan combined with any other outstanding 7(a) loan for working capital cannot exceed
$4,000,000.)

 True

Neither the EPC nor the OC is a trust, or SBA requirements regarding trusts are met.

 True

•
•
•
•

•

T. Delegated Processing: If any statement is answered “True,” the application is not eligible for processing under PLP, SBA
Express, Export Express, PLP-EWCP, or delegated CA authority.”

•

•
•
•

Lender is aware that the application was previously submitted to SBA under any SBA program, including SBA Express,
Export Express, PLP, 7(a) Small Loan, Community Advantage or Standard 7(a).
(Loan is not eligible to be submitted under delegated authority unless the LGPC Director has waived this prohibition
because the application was preliminary or incomplete when previously submitted, or has changed materially since the
previous submission. If the applicant does not receive an acceptable credit score on a 7(a) Small Loan, non-delegated
lenders may submit a Standard 7(a) loan application to the LGPC (following the procedures for loans over $350,000),
while delegated lenders may process using their delegated authority (following the procedures for loans over $350,000), or,
if the lender is an SBA or Export Express lender, as an Express application.)

 True

Lender has made or will make a personal loan to an individual for the purpose of providing an equity injection into the
business.

 True

Loan will finance the sale of the participating lender’s Other Real Estate Owned (OREO). (If “Yes,” loan is not eligible for
delegated processing and must contain the additional documentation and information required by SOP 50 10.)

 True

Loan will be collateralized by commercial property that will not meet SBA’s environmental requirements OR that will
require use of a non-standard indemnification agreement.

 True

U. Prior Loss to Government/Delinquent Federal Debt: If any statement is answered “True,” loan is not eligible,
unless waived by SBA for good cause.)
• Applicant business previously defaulted on a Federal loan or Federally-assisted financing that resulted in the Federal
 True
government, or any of its departments or agencies, sustaining a loss, including any compromise agreement with any such
agency/department.

•

•

Another business owned or controlled by any Associate of the Small Business Applicant or guarantor defaulted on a
Federal loan (or guaranteed a loan which was defaulted) and caused the Federal government, or any of its agencies, or
departments to sustain a loss in any of its programs, including any compromise agreement with any such
agency/department.

 True

An Associate of the Small Business Applicant or guarantor is currently delinquent on any Federal debt.

 True

V. Program Specific Requirements/Limitations

 Community Adjustment and Investment Program (CAIP)
•

If the Small Business Applicant is eligible for guaranty fee reimbursement under the Community Adjustment and
Investment Program (CAIP), the loan cannot be delivered via PLP. (If the CAIP loan is approved, the Lender must
follow the procedure in SOP 50 10 to request the reimbursement.)

SBA Form 1920 (05/17)

Page | 6

 Acknowledged

 Community Advantage (loan amount is $250,000 or lower)
•
•

If the loan is being processed through Community Advantage, SBA Form 2449, Community Advantage Addendum,
must be completed and attached to SBA Form 1919, Borrower Information Form.

 Yes

 No

Applicant meets the minimum credit score requirement for Community Advantage loans. (If no, loan must be
submitted under Standard 7(a) guidelines for loans over $350,000.)

 Yes

 No

 Yes

 No

 Yes

 No

 7(a) Small Loan (loan amount is $350,000 or lower)
•

Applicant meets the minimum credit score requirement for 7(a) Small loans. (If the applicant does not receive an
acceptable credit score, non-delegated lenders may submit a Standard 7(a) loan application to the LGPC (following
the procedures for loans over $350,000), while delegated lenders may process using their delegated authority
(following the procedures for loans over $350,000), or, if the lender is an SBA or Export Express lender, as an
Express application.)

Lender’s Credit Memorandum includes:

•

A brief description of the history of the business and the management team of the company; Owner/Guarantor analysis; confirmation of
Lender’s collection of business tax returns, and verification and reconciliation of the applicant’s financial data against income tax
transcripts received from the IRS; a determination that equity and pro-forma debt-to-worth are acceptable based on Lender’s written
policies and procedures for similarly-sized, non-SBA guaranteed commercial loans; a list of collateral and its estimated value (if secured);
and the impact any affiliates may have on the applicant’s repayment ability.

 CAPLine - If the loan is a CAPLine, please complete the following:
Applicant qualifies under standard 7(a), has been in operation for at least 12 calendar months and is able to
 Seasonal

 Yes

 No

Applicant qualifies under standard 7(a), is a construction contractor or homebuilder under NAICS codes
236220, 236115, 236116, or 236118 with a demonstrated managerial and technical ability in profitable
construction or renovation, will either perform the construction/renovation work or manage the job with at
least one supervisory employee on the job site during the entire construction phase, will conduct prompt
and significant renovations, as defined in SOP 50 10, and has demonstrated a successful performance
record in bidding and completing construction/renovation at a profit within the estimated construction
period, is able to demonstrate prior prompt payments to suppliers and subcontractors, and the prior
successful performance have been of comparable type and size to the proposed project.

 Yes

 No

Applicant qualifies under standard 7(a), is able to demonstrate an ability to operate profitably based upon
the prior completion of similar contracts, possesses the overall ability to bid, accurately project costs,
perform the specific type of work required by the contract(s), and has the financial capacity and technical
expertise to complete the contract on time and at a profit.

 Yes

 No

Applicant qualifies under standard 7(a) and generates accounts receivable (not notes receivable) and/or has
inventory.

 Yes

 No

demonstrate a definite pattern of seasonal activity.

 Builders

 Contract

 Working
Capital

W. Leasing and Leasehold Improvements
Leasing part of new construction to another business
Some of the Use of Proceeds are for construction of (or the refinancing of the construction for) a new building. If checked, answer the
following questions: (If any of the questions below cannot be answered as “TRUE,” then the loan is not eligible.)


•

If building will contain rental space, Applicant (or Operating Companies) will permanently occupy at least 60% of the
rentable property for the term of the loan; lease long term no more than 20% of the rentable property to one or more tenants;
plans to occupy within three years some of the remaining rentable property not immediately occupied or leased long term;
and plans to occupy within ten years all of the rentable property not leased long term.

 True

•

Community improvements do not exceed 5% of the loan amount.

 True

•

If refinancing a construction loan, the construction loan is not with the same lender. If this question cannot be answered
“True,” then loan may not be processed under delegated authority.

 True

•

Loan proceeds will not be used to remodel or convert any rental space in the property.

 True

Leasing part of an existing building to another business



To provide funds for the acquisition of land or existing building or for renovation or reconstruction of an existing building.
If checked, answer the following questions: (If any of the questions below cannot be answered as “TRUE,” then the loan is not eligible.)
•

Applicant (or Operating Companies) will occupy at least 51% of the rentable property.

•

Loan proceeds will not be used to remodel or convert any rental space in the property.

SBA Form 1920 (05/17)

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 True
 True

Leasehold Improvements made to a building owned by an unrelated third party



To provide funds for or refinance leasehold improvements. If checked, answer the following questions:
•

Loan proceeds will be used to improve space occupied 100% by Applicant. (If not “True,” loan is not eligible.)

 True

•

The building where improvements will be made is owned by any principals of the Operating Company. (If “True,” the loan
is only eligible if structured as an EPC/OC loan unless building and business are both owned as a sole proprietorship.)

 True

X. Export Loan Programs
•

 Yes

 No

The applicant business has been operating, although not necessarily in exporting, for at least 12 full months. If less
than 12 months, the applicant’s key personnel have clearly demonstrated export expertise and substantial previous
successful business experience, AND the lender processes the Export Express loan using conventional commercial
loan underwriting procedures and does not rely solely on credit scoring or credit matrices to approve the loan. For
non-bank lenders that do not have a conventional loan portfolio, a written approval from the Office of Credit Risk
Management for their underwriting procedures has been has been obtained prior to making the Export Express loan.

 Yes

 No

Applicant has demonstrated to lender that loan proceeds will enable it to enter a new export market or expand an
existing export market.

 Yes

 No

Loan proceeds will be used for an export development activity as defined in the SOP 50 10.

 Yes

 No

If proceeds are being used to finance indirect exports, the applicant has provided certification to lender from the
applicant’s domestic customer (typically in the form of a letter, invoice, order or contract) that the goods or services
are in fact being exported.

 Yes

 No

Proceeds will not be used to finance overseas operations, except for the marketing and/or distribution of
products/services exported from the U.S.

 Yes

 No

If proceeds are being used to finance specific export transactions (including indirect exports), lender has determined
that U.S. companies are authorized to conduct business with the proposed country(ies) to which the goods or services
will be shipped and has reviewed the Ex-Im Bank Country Limitation Schedule (CLS) to verify that the U.S.
Government has not restricted trade with any foreign country that the applicant does business with (i.e., no country is
identified on the CLS by Note #7).

 Yes

 No

Loan is an Export Express loan and will not refinance an existing SBA-guaranteed loan.

 Yes

 No

Applicant business is an exporter, projected export sales supported by this loan? $

 Export Express
•

•
•
•
•
•

•

 To provide funds to guarantee or support a standby letter of credit. (If checked, answer the following questions.) (If both are “No,” the
loan is not eligible.)
•

Loan is an Export Express loan

 Yes

 No

•

Loan is an EWCP loan

 Yes

 No

 Export Working Capital Program (EWCP) - In addition to EIB-SBA Form 84-1, Joint Application for Export Working Capital
Guarantee, the following questions must be answered. If “No,” loan is not eligible for EWCP.
•

Applicant has been in business for at least 12 months.

 Yes

 No

•

If Applicant is an export management company (EMC) or export trading company (ETC), the EMC or ETC will take
title to the goods or services being exported and the EMC or ETC has no bank ownership.

 Yes

 No

The loan proceeds will be used solely for the purpose of 1) financing the acquisition, construction, renovation,
modernization, improvement, or expansion of productive facilities or equipment to be used in the United States in the
production of goods and services involved in international trade; 2) the refinancing of existing indebtedness that is not
structured with reasonable terms and conditions, including any debt that qualifies for refinancing under the Debt
Refinance section below; or 3) working capital [of up to $4,000,000 guaranteed amount] when IT loan is for working
capital.

 Yes

 No

•

The small business concern is either 1) in a position to expand existing export markets or develop new export
markets; or 2) is confronting increased competition with foreign firms in the relevant market and is injured by such
competition.

 Yes

 No

•

Lender will 1) take a first lien on the fixed assets financed (or re-financed) with this loan or on other assets of the
small business concern; or 2) take a second lien on the fixed assets financed (or re-financed) with this loan or on other
assets of the small business concern and Lender has determined that the second lien provides adequate assurance of
the payment of the loan.

 Yes

 No

Collateral is located in the United States, its territories and possessions.

 Yes

 No

 International Trade Loan (IT) (If any question below is answered “No,” loan is not eligible for IT.)
•

•

SBA Form 1920 (05/17)

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 International Trade Loan (IT) (If any question below is answered “No,” loan is not eligible for IT.)
•

Lender has reviewed the Ex-Im Bank Country Limitation Schedule (CLS) to verify that the U.S. Government has not
restricted trade with any foreign country that the applicant does business with (i.e., no country is identified on the
CLS by Note #7).

 Yes

 No

Y. Debt Refinancing - for each debt being refinanced.



Include a COMPLETE BUSINESS DEBT SCHEDULE that matches the most current interim business financial
statement.
Include a copy of all supporting documentation for each debt to be refinanced (e.g., note, security agreement, lease).
For credit card debt provide a copy of the most recent credit card statement evidencing the name the debt is in and
the current balance. (Lenders must follow the procedures as outlined in the current SOP50 10 for documenting their
files completely for any debt being refinanced.)

•

Demonstrate that refinancing will provide a substantial benefit to Applicant of at least 10% needed
improvement to cash flow. If more than one debt is refinanced, the new debt will have at least a 10% cash flow
improvement over the combined cash flow of the debt being refinanced. (This does not apply if the refinanced
debt is a demand note, involves a balloon payment, credit card obligation used for business related purposes, or
revolving line of credit (short term or long-term)). (For CA loans the lender must demonstrate either: a 10%
improvement in cash flow, or that the CA loan exceeds the amount being refinanced by at least $5,000 or 25%,
whichever is greater.)

Included


Included for each debt
being refinanced


Included for each debt
being refinanced

AND

•
•
•
•

•


Included for each debt
being refinanced

Existing debt no longer meets the needs of the Applicant.

Proceeds will not pay a creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an
existing debt.

 True

The application is being processed under SBA Express and the transaction is the purchase of an existing business that has an
existing SBA loan that is not with the requesting SBA Express lender.

 True

The application is a Working Capital CAPLine, the debt is an existing SBA-guaranteed line of credit that is not with the
requesting lender and all other requirements of debt refinancing in SOP 50 10 are met (if the existing SBA-guaranteed line of
credit is same institution debt, the lender’s credit exposure will not be reduced and the loan cannot be processed using
delegated authority, but must be submitted to the LGPC in accordance with SOP 50 10).

 True

The application is being processed under 7(a) Small Loan, Standard 7(a), PLP, or the CA Pilot Program, the debt is an
existing SBA-guaranteed loan that is not same institution debt and the lender or borrower has obtained evidence that the
lender currently holding the debt is unwilling or unable to modify the current payment terms or provide an increase or a
second loan.

 True

For Same Institution Debt (“SID”) Refinancing, if the debt being refinanced is between the Applicant and the requesting SBA lender meets one of
the following conditions:

 This application is being processed under SBA Express and the debt has been current (no payment beyond 29 days past due)
for at least the last 36 months AND the new loan will not reduce the lender’s existing credit exposure to the borrower.

 This application is being processed under PLP and the debt is either an interim loan that has been made for other than real
estate construction purposes and was approved by the lender within 90 days prior to the issuance of a PLP loan number, or
the debt is a construction loan that has not been disbursed.

 This application is being processed under 7(a) Small Loan or Standard 7(a) and the lender has provided a transcript of
account for the past 36 months or the life of the loan, whichever is less and the lender has explained any late payments and/or
late charges that have occurred during the last 36 months.

 The loan is being processed under the CA Pilot Program and the lender has provided a transcript showing due dates and 6
months of timely payments for the most recent six-month period. (If there are any late payments (payments beyond 29 days
of the due date) in the most recent 6 month period, the debt may not be refinanced with a CA loan.)

 The application is being processed under 7(a) Small Loan, Standard 7(a) or the CA Pilot Program, the debt is an existing
SBA-guaranteed loan that is same institution debt that has been sold on the secondary market and the investor is unwilling to
agree to modified terms (such applications cannot be processed under PLP authority or a CA Lender’s delegated authority).

SBA Form 1920 (05/17)

Page | 9

 True
 True
 True

 True

 True

Z. Other

•

Loan will not refinance debt to a Small Business Investment Company (SBIC).

 True

Loan will not refinance an existing 504 loan unless it meets the requirements of debt refinancing in Subpart B, Chapter 2 of
SOP 50 10 and either: 1) both the Third Party Loan and the 504 loan are being refinanced; or 2) the Third Party Loan has
been paid in full and the 504 loan needs to be refinanced as part of a larger transaction to provide funding for expansion of or
renovations to the Project property. (Any applicable 504 prepayment penalties apply and refinancing a 504 loan may not be
processed under delegated authority.)

 True

•

Loan will not repay third party financing for any existing 504 project.

 True

•

Loan will not repay delinquent IRS withholding taxes, sales taxes or similar funds held in trust.

 True

•

Loan will not refinance any seller take-back financing of less than 24 months following the change of ownership.

 True

•

Loan will refinance seller take-back financing that is and has been current for the past 24 months.

 True

•

SBA Certification to Financial Institution under Right to Financial Privacy Act (12 U.S.C. 3401)
By signing SBA Form 1919, Borrower Information Form in connection with this application for an SBA-guaranteed loan, the applicant certifies that
it has read the Statements Required by Law and Executive Order, which is attached to SBA Form 1919. As such, SBA certifies that it has complied
with the applicable provisions of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401) and, pursuant to that Act, no further certification is
required for subsequent access by SBA to financial records of the applicant/borrower during the term of the loan guaranty.

Statement Regarding Lobbying (applicable only to loans exceeding $150,000)
If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this commitment providing for the
United States to guarantee a loan, the Lender will complete and submit Standard Form LLL, “Disclosure of Lobbying Activities,” in accordance with
13 CFR Part 146. Lender acknowledges submission of this disclosure is a prerequisite for making or entering into this transaction imposed by
Section 1352, Title 31, U.S. Code, and that any person who fails to file or amend a declaration required to be filed or amended will be subject to a
civil penalty in the amounts set forth in 13 CFR §146.400.

Lender Certification
On behalf of my Lending Institution,
•

I certify that my institution has complied and is familiar with SBA Loan Program Requirements, that we have accurately and correctly
completed the Lender’s Application for Guaranty for All 7(a) Programs on behalf of the Lender, that the above information is true and correct,
to the best of our knowledge, and that we have exercised due diligence to obtain the true and correct information.

•

I approve this application to SBA subject to the terms and conditions stated in this and the attached documents. Without the participation of
SBA, to the extent applied for, we would not be willing to make this loan, and, in our opinion, the financial assistance approved is not otherwise
available on reasonable terms.

•

I certify that the Small Business Applicant is an eligible business and lender’s credit file contains the documentation that supports the Lender’s
determination of eligibility per SOP 50 10.

•

For applications submitted under delegated authority, I am aware and acknowledge that SBA will not review eligibility prior to issuing an SBA
loan number and that if an SBA loan number is assigned and SBA later learns that the loan is not eligible, SBA may deny liability on its
guarantee.

•

For all applications submitted under non-delegated processing:
o

•

For loans with a Change of Ownership (including existing owners)
o

•

Lender’s credit memorandum contains confirmation of Lender’s collection of business tax returns and verification and
reconciliation of the applicant’s financial data against income tax data (received in response to IRS Form 4506-T, Request for
Transcript of Tax Return) prior to submitting the application to SBA.

All Seller financial information has been signed and dated by the Seller and has been verified against IRS tax transcripts as set
out in SOP 50 10. Where there is an acquisition of a division or a segment of an existing business, other forms of verification
may be used in lieu of the 4506-T (e.g., Sales tax payment records);

I approve and certify that the Applicant is a small business according to the standards in 13 CFR Part 121, the loan proceeds will be used for an
eligible purpose, and the owners and managers of the applicant business are of good character.

SBA Form 1920 (05/17)

Page | 10

•

I certify that:
•

None of the Lender’s Associates*, including but not limited to its employees, officers, directors, or substantial stockholders (more than
10%) has a financial interest in the Applicant.

•

No Lender or Associate of Lender has a real or apparent conflict of interest with Applicant, any of Applicant’s Associates, or any of the
close relatives of Applicant’s Associates.

•

No Lender or Associate or close relative of an Associate of the lender has a significant direct or indirect financial or other interest in the
applicant, or has had such an interest within 6 months prior to the date of the application.

•

No Associate of a Lender is incarcerated, on parole, or on probation or is a convicted felon or has an adverse final civil judgment (in a case
involving fraud, breach of trust, or other conduct) that would cause the public to question the Lender’s business integrity.

•

No Lender or any Associate of Lender has accepted funding from a source that restricts, prioritizes, or conditions the types of small
businesses that Lender may assist under an SBA program or that imposes any conditions or requirements upon recipients of SBA assistance
inconsistent with SBA’s loan programs or regulations.

•

Neither the Applicant, an Associate of Applicant, close relative nor household member** of an Associate of Applicant is required to invest
in Lender.

•

None of the loan proceeds will be used to acquire space in a project for which lender has issued a real estate forward commitment.

*

Associate of a Lender is an officer, director, key employee, or holder of 20% or more of the value of the Lender’s stock or debt instruments.

** A “household member” of an SBA employee includes: a) the spouse of the SBA employee; b) the minor children of said individual; and c)
the blood relatives of the employee, and the blood relatives of the employee’s spouse who reside in the same place of abode as the employee.
[13 CFR § 105.201(d)]

Authorized Lender Official:

Date:
Signature

Type or Print Name:

Title:

FOR PLP SUBMISSIONS ONLY (in addition to above):
•

I approve and certify that the applicant is a small business according to the standards in 13 CFR Part 121, the loans proceeds will be used for an
eligible purpose, and the owners and managers of the applicant business are of good character.

Authorized Lender Official:

Date:
Signature

Type or Print Name:

Title:

NOTE: According to the Paperwork Reduction Act, you are not required to respond to this collection of information unless it displays a
currently valid OMB Control Number. The estimated burden for completing this form, including time for reviewing instructions, gathering data
needed, and completing and reviewing the form is 25 minutes per response. Comments or questions on the burden estimates should be sent to
U.S. Small Business Administration, Director, Records Management Division, 409 3rd St., SW, Washington DC 20416, and/or SBA Desk
Officer, Office of Management and Budget, New Executive Office Building, Rm. 10202, Washington DC 20503. PLEASE DO NOT SEND
FORMS TO THESE ADDRESSES.

SBA Form 1920 (05/17)

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