SBA SOP 50 10 8, B.Ch1.D.1 — Contents of Lender’s Application for Guaranty & Submission to SBA
Verbatim text of SBA SOP 50 10 8 section B.Ch1.D.1 (Contents of Lender’s Application for Guaranty & Submission to SBA), effective 2025-06-01. 5 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, B.Ch1.D.1 — Contents of Lender’s Application for Guaranty & Submission to SBA — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 B.Ch1.D.1
1. Contents of Lender’s Application for Guaranty & Submission to SBA Regardless of the processing method (delegated or non-delegated), all 7(a) loan files must include the forms and information the Lender requires in order to make an informed credit decision. Any application form obtained by the Lender from the Applicant must be certified by the Applicant as true and complete. For all loans submitted using the Lender’s PLP delegated authority, Lender must submit the information required in SBA Form 1919 and the loan terms and conditions into E-Tran. For all loans submitted using the non-delegated process through the LGPC, the Lender must submit applications for guaranty and all attachments via E-Tran to SBA. SBA will make the final determination as to the eligibility and creditworthiness of the Applicant, including approving the uses of proceeds, the adequacy of the collateral being pledged, the structure of the loan, and any equity contribution to be required from the Applicant. SBA will either approve or decline the loan in E-Tran. The Lender must obtain and retain in its file all documentation listed below. In addition, Lender must submit as part of the application for guaranty those items below emphasized in bold. Lender must submit to E-Tran all terms and conditions required by E-Tran data fields. SBA Form 1919: A separate SBA Form 1919 for each Co-Borrower must be completed and signed by the authorized representative of the Applicant and submitted to the Lender. The aggregate amounts of the “Purpose of the loan” sections across all SBA Forms 1919 should equal the total amount of the loan request. 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. Lender’s Credit Memorandum must address all requirements detailed in Paragraph C, Credit Standards in this Chapter. Owner Financial Statement (business or personal, as applicable) signed and dated within 120 days of submission to SBA, for all owners of 20% or more (including the assets of the owner’s spouse and minor children), and proposed guarantors, except Supplemental Guarantors. Lenders may use SBA Form 413 or their own equivalent form. Tax transcripts in accordance with Section A, Ch. 5, Para. B, IRS Tax Transcript/Verification of Financial Information and either business financial statements or tax returns for the last 3 years and interim financial statements for the Applicant and any affiliates. For start-ups, new businesses, changes of ownership, and other applications based on projections, include detailed projections, including the supporting assumptions that reflect a debt service coverage equal to or greater than 1.15 within 2 years from loan funding or, for construction projects, within 2 years from the end of construction. Interim financial statements must be dated within 120 days prior to submission to SBA. The following information must be provided: i. Year End Balance Sheet for the last 3 years, including detailed debt schedule; ii. Year End Profit & Loss Statements for the last 3 years;
SOP 50 10 8 B.Ch1.D.1.iii
iii. Interim Balance Sheet, including a detailed debt schedule, and interim Profit & Loss Statements. Copy of Lease, if applicable; Detailed listing of machinery and equipment to be purchased with loan proceeds and cost quotes, if applicable; A detailed listing of all assets purchased with loan proceeds; A detailed listing of all collateral; Franchise: For any Applicant operating under a franchise, license or similar agreement, refer to Section A, Ch. 1, Para. G., “Franchises”. Provide the following if real estate is to be purchased with loan proceeds:
SOP 50 10 8 B.Ch1.D.1.i
i. Appraisal (See appraisal requirements in Paragraph C.3.d, Real Estate Appraisal and Business Valuation Requirements in this Chapter; ii. Copy of signed purchase agreement; iii. Lender’s environmental questionnaire (if applicable – see Section A, Ch. 5, Para. E, Environmental Policies and Procedures); and iv. Cost breakdown where improvements to the real estate are included; Provide the following if purchasing an existing business with loan proceeds: i. Copy of buy-sell agreement; ii. Copy of business valuation that meets the requirements in Paragraph C.3.d.v, Business Valuation Requirements - Change of Ownership in this Chapter; iii. Pro forma balance sheet for the business being purchased as of the date of transfer;
SOP 50 10 8 B.Ch1.D.1.i.iv
iv. Copy of seller’s financial statements for the last 3 complete fiscal years or for the number of years in business if less than 3 years. The financial statements must be dated and either signed or certified by the seller within 120 days prior to submission to SBA; and
SOP 50 10 8 B.Ch1.D.1.v
v. Seller’s interim financial statements no older than 120 days from date of submission to SBA. The financial statements must be dated and either signed or certified by the seller. If seller’s financial statements are not available, the seller must provide an alternate source of verifying revenues. If seller’s financial statements are not available, Lender must discuss in its credit analysis: a) Why financial statements are not available; and b) How the Lender verified business revenue. Debt Refinancing. Lenders must maintain copies of all notes being refinanced, security agreements, leases, transcripts for the most recent 12 months (to prove debt being refinanced is current) or other documentation evidencing the debt to be refinanced in the loan file. For non-delegated loans, Lender must submit copies of all these documents for the debt to be refinanced to the LGPC with the application. Documentation of U.S. National and/or LPR/USCIS status verification in accordance with Section A, Ch. 1, Para. F, “Businesses Owned by Non-U.S. Citizens”. Lenders must receive verification of the status of each alien required to submit USCIS documents prior to submission of the application or request for loan number to SBA. Lender may submit a copy of the verification received from USCIS or SBA-SLPC or confirm in its credit memorandum that verification has been obtained. Lender must retain documentation proving a U.S. National’s status (birth certificate and/or passport) in the loan file. Management agreements, if applicable, and if the management agreement is not part of the franchise disclosure documents for a brand listed on the Franchise Directory. See Section A, Ch. 1, Para. E.3.e. on management agreements.
Operationalizing SBA SOP 50 10 8, B.Ch1.D.1 — Contents of Lender’s Application for Guaranty & Submission to SBA
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Source of record: https://claudeforcompliance.com/regs/sba-sop-b-ch1-d-1/
· register sba-sop-b-ch1-d-1 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.