#Chamber members looking for an SBA Guaranteed Loan? New SBA 7a Loan Guaranty Application Procedures Started 01/01/14

Effective January 1, 2014, the U. S. Small Business Administration is using Forms 1919 and 1920 for all 7a loan applications (except for the Export Working Capital Program which uses SBA Form 84-1) and will no longer accept guaranteed loan applications using SBA Form 4 or 2301. The revised versions of SBA Forms 1919 and 1920 are in the final clearance stage and are expected to be approved for use soon. Until then, lenders must use the existing 1919 and 1920 forms (Revised 5/2012 versions), accessible via the following links:

1. Borrower’s Application - SBA Form 1919 (Rev 5/2012); and
2. Lender supplemental information - SBA Form 1920SX Part B; and
3. Eligibility information – SBA Form 1920 SX Part C and

As a reminder, other procedures that lenders must also complete as a part of the loan guaranty application process include:

1. Lenders are required to input their loan data into E-Tran.
2. All small business loan applicants must have a DUNS number.
3. Lenders are responsible for ensuring that loan applicants (including any affiliates) and guarantors have not had a prior loss on a federal loan and can check this information through Credit Alert Verification Reporting System (CAIVRS). Instructions on how to access the system is available in the CAIVRS FAQs.
4. Lenders are responsible for consulting the System for Awards Management (SAM) Excluded Parties List System (EPLS) or successor system to determine if a key employee of the applicant business or agent involved with the loan application has been debarred, suspended or otherwise excluded by SBA or other federal agency.
5. The IRS verification process (IRS Form 4506: Request for Transcript of Tax Return) must be completed prior to the submission of the application to the Loan Guaranty Processing Center (LGPC). For delegated lenders, the IRS verification process must be completed prior to the first disbursement.


Date: 1/3/2014 Author Information: Angie Wells, angela.wells@sba.gov or
314-539-6613

Source: SBA email communication