SBA Application Forms: Key Document Information for Lenders and Your Clients

Learn about required SBA loan application forms and tips to avoid processing delays

The U.S. Small Business Administration (SBA) helps lenders approve more business loans by providing guarantees that significantly reduce lending risks. Along with the guarantee comes a comprehensive application package, but don’t be thrown by its requirements: most forms only require straightforward information about the borrower and/or the business or simply require a signature.

In this overview, we look at the forms and documents the SBA requires for an application and provide important tips to avoid common errors that can cause delays, especially with SBA Form 1919 and SBA Form 413. Our underwriters developed these tips based on decades of experience with the SBA, lenders and borrowers.

When your team is familiar with the forms, you’ll be better prepared to set realistic borrower expectations. And when the tips are followed, they make the entire process easier, which means borrowers have a quicker path to the funding needed to grow and succeed.

What forms will my client need to provide?

Prudent Lenders makes it easy to understand the forms your client will need to provide as part of the application process. Following an introductory call with you and your client, you’ll receive an underwriting checklist that outlines all the forms needed for a complete application. You and your clients will know what to expect, with no surprises.

Important tip: Ask your team to get this checklist to borrowers quickly and set an agreed-upon date for clients to return all paperwork.

Checklist Section 1: General Information

The information requisite for our team to complete a Fast Track Assessment (FTA) is strategically designed to obtain background information needed on your client. For loans that progress beyond the FTA stage, three additional forms are required:

Checklist Section 2: Owner Information

This section asks for documents the owner/s should have readily available, including:

  • Three years of personal tax returns
  • A copy of an acceptable government-issued photo ID
  • A resume
  • Any recent W2s, if applicable

This section also includes:

  • SBA Form 413, the Personal Financial Statement (PFS): This is a three-page form to be filled out by the borrower/s and signed by the borrower/s and spouse/s.

    Important tip: A common mistake that borrowers make when filling out this form is to add in the ownership value of their businesses and business assets. This form should only include personally owned assets. Inclusion of anything else can result in delays in processing. Another frequent error occurs when borrowers don’t include outstanding student loan balances, which makes their liabilities look lower.

  • SBA Form 1919, which provides borrower and business eligibility information for an SBA loan. If additional clearances are needed, they’ll be indicated on this form and an SBA Form 912 Clearance will also be required.

    Important tip: The most common errors for this form include improperly signed documents and missing information.

  • The Owner Questionnaire is provided by Prudent Lenders and must be completed by the borrower.
  • Depending on the borrower, additional documents that may be required include verification of veteran status and U.S. citizenship.

Checklist Section 3: Business Information

Depending on the type of business entity and the stage the business is in, some or all of the following information may be required, including:

  • Tax returns for the business
  • Business reports that include accounts receivable and accounts payable
  • Debt schedule
  • Financial projections
  • Business plan
  • Lease agreements
  • A startup or early-stage business may need an IRS Form SS4 to obtain an employee identification number (EIN)
  • IRS Form 4506-T Prudent Lenders will pre populate this form so it will only need to be signed and dated

Section IV: Affiliate Information

This section verifies business affiliations. Businesses that have affiliations will be required to provide financial statements and operating agreements detailing the relationship between the borrower and the affiliate entity.

Section V: Project Documentation

Most of the documents in this section are things that the borrower should have on hand. They include items such as:

  • Real estate purchase contracts
  • Business purchase agreements and proof of deposits made for real estate purchases
  • Proof of owner-equity contributions, for example bank statements, brokerage statements and gift letters
  • Existing real estate or equipment appraisals, if available

Submitting the file to Prudent Lenders

Once you’ve gathered all the documents and forms, you’ll submit it to us through ShareFile, a secure content-collaboration software. We’ll review it, contact you if any additional information is needed or any changes are required. We’ll also issue a final credit memo for your approval.

When we’re certain the loan application package is ready, we’ll submit it to the SBA and handle all SBA communications. SBA decisions are typically received within 10 business days.

And, as always, we’re here to help with the underwriting process and every step of SBA lending. Let us know how we can assist you.

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