February 11, 2014
By Bob Coleman
Editor Coleman Report
SBA Form 1919 is to be used for SBA 7(a) loans. Now, I know the question of when you need to use the forms is critical, but the SBA notice dated February 7th, is silent on a new effective date. When we have clarification, we will publish the effective date.
The character determination questions (questions 1-6) have been changed to mirror the questions asked on the current SBA Form 912, and the instructional information detailing when a Form 912 is required has been updated.
A chart has been added for the Small Business Applicant to identify 100% of the ownership of the business. In addition, the fields for the owners of the Small Business Applicant to identify veteran status, gender, race and ethnicity have been modified to match what is asked from the lender on Form 1920.
A new question was added to incorporate the Addendum for Community Advantage applicants, which identifies any management or technical assistance the applicant received. This information was previously collected as part of SBA Form 2301, Part A.
The New SBA 1920 for SBA Express Loans
The SBA Information Notice also announces a new SBA 1920 form for SBA Express loans.
Unfortunately, we couldn’t find the new form on SBA’s website. We’ll post it as soon as it is up on the website
However, here are the changes:
The revised Form 1920 dropped the SX suffix, and the separate parts A, B, and C were merged to form one comprehensive Form 1920.
Instructions were added to explain how both delegated and non-delegated lenders are to complete the borrower information section (formerly Form 1920SX, Part B).
A field was added to identify the FRUNS numbers when the Small Business Applicant is a franchise.
Certified Public Accountants were removed from the list of individuals qualified to perform a business valuation.
The revised Form 1920 will now be used by non-delegated lenders, as well as for loan programs previously not covered by this form, such as IT, EWCP and all CAPLines (not just PLP-CAPLines).
As with Form 1919, character eligibility questions were modified to conform to changes on Form 912.
A certification by SBA required under the Right to Financial Privacy Act was added, in addition to the lender certification formerly contained in Form 4-I.
Read the SOP Notice here
The New SBA Form 1919 for SBA 7(a) loans
The New SBA 1920 for SBA Express loans