SBA Information Notice 5000-852422
Summary
SBA Information Notice, control no. 5000-852422, effective December 26, 2023, addressed to SBA employees and SBA Lenders, on renewals and updates of forms for the 7(a) and 504 Loan Programs. It announces that SBA revised and renewed SBA Form 1919, the SBA 7(a) Borrower Information Form, and SBA Form 2237, renewed SBA Form 1971 without revision, eliminated SBA Form 1920, and is replacing SBA Form 2449 with the new SBA Form 3518, Community Advantage Addendum – 7(a) CA SBLC. The revised forms may be used immediately, with a 30-day grace period for lenders, and the notice then summarizes the changes to Form 1919.
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Full text
SBA Information Notice
TO: All SBA Employees and SBA Lenders CONTROL NO.: 5000-852422
SUBJECT: Renewals and Updates of SBA Forms EFFECTIVE: December 26, 2023
1919, 1971, 2237; Introduction of New
SBA Form 3518; and Elimination of
SBA Forms 1920 and 2449.
Purpose of this Notice
The purpose of this Notice is to announce the renewals and updates to various forms affecting
the 7(a) and 504 Loan Programs. SBA revised and renewed SBA Form 1919, “SBA 7(a)
Borrower Information Form”; and SBA Form 2237, “7(a) Post-Approval Action Checklist”.
SBA renewed without revision SBA Form 1971, “Religious Eligibility Worksheet”. SBA
eliminated SBA Form 1920, “Lender’s Application for Loan Guaranty”; and is replacing SBA
Form 2449, “Community Advantage Addendum (7(a) Pilot Program)” with the new SBA Form
3518, “Community Advantage Addendum – 7(a) CA SBLC”.
Timeframe for Using New Forms
The revised forms may be used immediately; however, SBA will allow a 30-day grace period for
SBA Lenders to begin using the revised forms.
Summary of Changes:
SBA Form 1919, “SBA 7(a) Borrower Information Form”
SBA reorganized and streamlined SBA Form 1919. Some of the more significant revisions
include the following. Only the information required on SBA Form 1919, and not the form itself,
must be submitted into E-Tran, although the Lender must obtain and retain the signed form in its
file.
Only a single Authorized Representative of the Applicant is required to complete the
Application, certify the information provided as part of the Application, and sign the form.
The Applicant must identify all Beneficial Owners of at least 20% of the Applicant and at least
51% of the total Beneficial Owners of the Applicant. “Beneficial Owners” is defined in SOP 50
PAGE 1 of 3 EXPIRES: 12/1/24.
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
10 7.1 as “A Person who owns a concern directly or indirectly through another entity. For
example, if Jane Doe owns 100% of Jane Doe, Inc., and Jane Doe, Inc., owns 50% of the
Applicant, Jane Doe is the beneficial owner of 50% of the Applicant.” “Person” is defined in 13
CFR 120.10 as “Any individual, corporation, partnership, association, unit of government, or
legal entity, however organized.” This means that Applicants must identify, and Lenders must
list in E-Tran, direct and indirect owners of the Applicant, whether a natural person or
corporation, partnership, etc., to account for all owners (direct or indirect) as required.
Former Questions 17, 18, and 19 regarding the prior criminal history of the Applicant or an
Associate of the Applicant were revised as new Question 4. The revision now complies with the
recently revised regulatory requirements (87 FR 38900) regarding the eligibility of an Applicant
or any Associate of the Applicant presently incarcerated, on probation, on parole, or presently
subject to an indictment for a felony or any crime involving or relating to financial misconduct or
a false statement.
In Question 7, SBA added “lending activities, lobbying activities” to the list of activities that
may have an eligibility restriction.
Former Question 20 on the citizenship status of each owner and Associate was removed and
replaced with an Applicant certification.
Former Question 22 regarding child support was removed and replaced with Applicant
certification.
Existing Borrower certifications and representations were updated and consolidated. These
changes will assist with upfront eligibility and fraud checks. Included in the Application
additional certifications previously provided by the Applicant at closing.
Calculating number of employees and jobs:
SOP 50 10 7.1 includes the following guidance. SBA Form 1919 includes information on how to
calculate the number of existing employees at the time of application and the number of jobs to
be created and/or retained as a result of the loan.
Number of existing employees at the time of application is calculated in accordance with 13 CFR
§ 121.106, which states in part that SBA counts all individuals employed on a full-time, part-
time, or other basis (i.e., jobs are not converted to full-time equivalents).
Jobs “created” means the number of full-time (or equivalent) employees that the small business
expects to hire as a result of the loan.
Jobs “retained” means the number of full-time (or equivalent) employees on the payroll of the
business at the time of application that will be lost if the loan is not approved.
“Employees” does not include contractors reported via IRS Form 1099.
PAGE 2 of 3 EXPIRES: 12/1/24.
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
SBA Form 2237, 7(a) Loan Post-Approval Action Checklist
SBA revised the instruction to correct the SOP reference from SOP 50 50 to SOP 50 57.
SBA Forms no longer required by SBA:
SBA Form 1920, “Lender's Application for Loan Guaranty”
Effective August 1, 2023, SBA eliminated the procedural requirements in SOP 50 10 for a 7(a)
Lender to submit the SBA Form 1920. As a result, SBA no longer requires the use of SBA Form
1920 for Lenders in their submission of 7(a) guaranteed loan applications. Lenders will continue
to input in E-tran the relevant loan-specific details, such as the Lender-approved loan amount,
the loan’s repayment terms, the use of loan proceeds, loan maturity, interest rates, collateral, and
guarantors.
SBA Form 2449, Community Advantage Addendum – 7(a) Pilot Program
SBA Form 2449 is eliminated due to the sunset of the Community Advantage Pilot Program. CA
Pilot Lenders who were in good standing with SBA have been transitioned to CA Small Business
Lending Company (SBLC) 7(a) Lenders.
New SBA Form - SBA Form 3518, “Community Advantage Addendum – 7(a) CA SBLC”
A new SBA Form 3518, “Community Advantage Addendum – 7(a) CA SBLC” will be used in
conjunction with SBA Form 1919 by CA SBLC Lenders.
CA SBLC Lenders will collect information from the Applicant to track the number of loans
made to small businesses in underserved markets. CA SBLCs will be required to submit SBA
Form 3518 as an addendum to SBA Form 1919 when submitting the 7(a) loan Application to
SBA in E-train.
Renewed without change: SBA Form 1971, “Religious Eligibility Worksheet”
Notification and Questions:
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Alejandro C. Contreras
Acting Director
Office of Financial Assistance
PAGE 3 of 3 EXPIRES: 12/1/24.
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
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