SBA Form 1920 Lender's Application for Loan Guaranty for All 7(A) Loan Programs

SBA Form 1920 is a U.S. Small Business Administration form also known as the "Lender's Application For Loan Guaranty For All 7(a) Loan Programs". The latest edition of the form was released in January 1, 2018 and is available for digital filing.

Download an up-to-date SBA Form 1920 in PDF-format down below or look it up on the U.S. Small Business Administration Forms website.

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Lender’s Application for Loan Guaranty
OMB Control No.: 3245-0348
For all 7(a) Loan Programs
Expiration Date: 07/31/2020
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.
A. Processing Method
Processing Options (if applicable)
7(a) Small Loan ($350,000 or less with an acceptable credit score)
CAPLINE Program
SBA Express
Export Express
7(a) Non-Delegated
Working Capital
Builders
Revolving
Revolving
Processing
Seasonal
Contract
Term Loan
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)
7(a) Delegated
Other (Explain):
Processing
B.
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:
City, ST, Zip:
Legal Structure:
Business Location:
Rural
Urban
Sole Proprietor
Partnership
Corp
LLC
Other
Applicant Primary Contact:
Primary Contact Phone:
(
)
-
# of employees prior to this loan:
# of jobs created because of this loan:
# of jobs retained because of this loan:
OC /
Co-Applicant:
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:
Lender ID:
Address:
City:
ST:
Zip:
Lender Contact:
Ph:
(
)
-
Cell or Ext: (
)
-
Contact Email:
Title:
Alternate Contact Information (
Check if this contact will be the primary contact for loan processing information)
Alternate Name
:
Contact Type:
Lender Employee
LSP
(if other than Lender)
Alternate Contact:
Ph:
(
)
-
Cell or Ext: (
)
-
Alternate Contact Email:
Title:
| 1
SBA Form 1920 (01/18)
P a g e
Lender’s Application for Loan Guaranty
OMB Control No.: 3245-0348
For all 7(a) Loan Programs
Expiration Date: 07/31/2020
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.
A. Processing Method
Processing Options (if applicable)
7(a) Small Loan ($350,000 or less with an acceptable credit score)
CAPLINE Program
SBA Express
Export Express
7(a) Non-Delegated
Working Capital
Builders
Revolving
Revolving
Processing
Seasonal
Contract
Term Loan
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)
7(a) Delegated
Other (Explain):
Processing
B.
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:
City, ST, Zip:
Legal Structure:
Business Location:
Rural
Urban
Sole Proprietor
Partnership
Corp
LLC
Other
Applicant Primary Contact:
Primary Contact Phone:
(
)
-
# of employees prior to this loan:
# of jobs created because of this loan:
# of jobs retained because of this loan:
OC /
Co-Applicant:
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:
Lender ID:
Address:
City:
ST:
Zip:
Lender Contact:
Ph:
(
)
-
Cell or Ext: (
)
-
Contact Email:
Title:
Alternate Contact Information (
Check if this contact will be the primary contact for loan processing information)
Alternate Name
:
Contact Type:
Lender Employee
LSP
(if other than Lender)
Alternate Contact:
Ph:
(
)
-
Cell or Ext: (
)
-
Alternate Contact Email:
Title:
| 1
SBA Form 1920 (01/18)
P a g e
D
Loan Structure Information
.
Amount of Loan Request:
$
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
1
0.000
Fixed
Un-Guaranteed
Fixed Base Rate
Other
(explain in Credit Memo)
Variable
Full
Guaranteed
Prime
SBA LIBOR
SBA Peg Rate
0.000
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)
When will first adjustment occur:
(see SOP 50 10 “SBA requirements for SBA Note”)
Complete Project Information (Round to dollars & must be supported in lender credit memo)
E.
Use of Proceeds (Sources and Uses)
SBA 7(a) Loan
Other Financing
Borrower Injection
Total for Line
$
$
$
$
0
Land Acquisition (
with or
without improvements)
$
$
$
$
0
New Construction
Expansion
Renovations
Leasehold Improvements to property owned by others
$
$
$
$
0
Machinery & Equipment
$
$
$
$
0
Furniture & Fixtures
$
$
$
$
0
Inventory Purchase
$
$
$
$
0
Working Capital
$
$
$
$
0
$
$
$
$
0
Acquire Business (
Asset or
Ownership Interest)
0
$
$
$
$
Pay off SBA Loan (
SID /
Other Lender /
Both)
$
$
$
$
0
Pay Notes Payable (
SID /
Other Lender /
Both)
Pay Accounts Payable
$
$
$
$
0
SBA Guarantee Fee
$
$
$
$
0
Other (explain):
$
$
$
$
0
Other (explain):
$
$
$
$
0
Total
:
(sum of last column should match sum of first 3 across)
$
0
$
0
$
0
$
0
Will more than $10,000 of the loan proceeds be used for construction/renovation?
(If “Yes,” SBA Form 601 must be completed.)
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
Yes
No
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
Yes
No
defined by 13 CFR Part 121), and (5) able to demonstrate a need for the desired credit.
The Small Business Applicant’s products and/or services are available to the general public.
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
Yes
No
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 (01/18)
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
OR
Use the Alternative size standard
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
True
standard for the primary industry of the applicant and its affiliates, whichever is higher (13 CFR 121.104);
OR
The combined size calculation of applicant and its affiliates meets the alternative size standard.
True
If size standard is exceeded by no more than 25%, Applicant agrees to use the loan proceeds within a labor surplus area.
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. (If a person will be executing the note as a borrower in an individual capacity, that person
does not also have to execute a personal guarantee.)
True
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
True
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.
True
If the answer to this statement cannot be answered “True,” the loan is not eligible.
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
True
6 months ago and there were no convictions for crimes against minors.
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
True
issue(s) from SBA headquarters through the SBA field office.
SBA Form 1920 (01/18)
Page | 3
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:
True
1.
A non-profit Business (for-profit subsidiaries are eligible)
2.
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.
A mortgage service company where any loans funded are not sold within 14 days of loan closing.
b.
3.
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.
4.
A business located in a foreign country or owned by undocumented (illegal) aliens.
5.
A pyramid sale distribution plan.
6.
A business involved in any illegal activity.
7.
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.
8.
A business that earns 1/3 or more of its gross annual revenue from packaging SBA loans.
9.
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.
10. A business primarily engaged in political or lobbying activities.
11. A speculative business (such as mining, and research & development).
12. 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.
13. A private club or business that limits the number of memberships for reasons other than capacity.
14. A Government-owned entity (except for businesses owned or controlled by a Native American tribe, but is a separate legal entity from the
tribe).
M.
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
True
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.
Loan will help finance the growth of the Qualified Employee Trust’s employer’s small business or will purchase ownership
True
or voting control of the employer.
Loan proceeds will be used to purchase: 1) qualified employer securities; or 2) a controlling interest (51% or more) in the
True
employer (ownership and control will vest in the trust by the time the loan is repaid).
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
True
daily operations of the business;
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
True
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 (01/18)
Page | 4
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.
Yes
No
(If “No,” the loan is not eligible.)
The change is between existing owners of the small business and will result in 100% ownership by the remaining
Yes
No
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.)
The loan proceeds will not pay off an SBA-guaranteed loan of the seller with the same lender.
Yes
No
(If “No,” application may not be processed under delegated authority.)
The loan proceeds will not finance any amount in excess of the business valuation. (If “No,” the loan is not
Yes
No
eligible.)
Yes
No
A business broker will receive a commission from the sale of the business paid by the Applicant.
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)
Total Purchase Price to be paid to seller per purchase contract:
$
-$
Less down payment paid to Seller:
Source & Type of Injection:
Less buyer injection :
-$
$
0
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):
$
0
Value of intangible assets to be Financed (A) – (B) – (C) = (D):
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. Franchise/License/Jobber/Membership or Similar Agreement
Yes
No
Does the applicant business operate under a Franchise/License/Jobber/Membership or similar Agreement?
Franchise Identifier Code (if applicable):
Tradename under the Agreement:
Please answer the following statements (if the answer to any statement below is “no,” the loan is not eligible):
Applicant’s brand is eligible for SBA financial assistance and either (a) it meets the FTC definition of
Yes
No
a franchise and is included on the SBA Franchise Directory, or (b) does not meet the FTC definition of
a franchise.
If Applicant operates under multiple agreements, Lender has determined that all of Applicant’s brands
Yes
No
are eligible, and those brands that meet the FTC definition of a franchise are on the SBA Franchise
Directory.
For non-delegated loans, if the Applicant’s brand is not on the SBA Franchise Directory, Lender has
Yes
No
determined that the brand does not meet the FTC definition of a franchise, but is eligible for SBA
financial assistance. Lender has explained its determination in its credit memorandum and submitted
the agreement and any other documentation required by the brand to the LGPC with its application.
For delegated loans, if the Applicant’s brand is not on the SBA Franchise Directory, Lender has
Yes
No
determined that the brand does not meet the FTC definition of a franchise, but is eligible for SBA
financial assistance. Lender has explained its determination in its credit memorandum and retained all
supporting documentation in its file.
SBA Form 1920 (01/18)
Page | 5

Download SBA Form 1920 Lender's Application for Loan Guaranty for All 7(A) Loan Programs

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