SBA SOP 50 10 8, B.Ch3.D.1 — Contents of Lender’s Application for Guaranty
Verbatim text of SBA SOP 50 10 8 section B.Ch3.D.1 (Contents of Lender’s Application for Guaranty), effective 2025-06-01. 8 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 SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
See also
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, B.Ch3.D.1 — Contents of Lender’s Application for Guaranty — 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.Ch3.D.1
1. Contents of Lender’s Application for Guaranty The contents of the Lender’s application for guaranty vary depending on the size of the loan and the method of processing chosen by the Lender. Based on the method of processing, the Lender may or may not be required to submit the documentation and exhibits to SBA, but in all cases must maintain those documents and any that support the guaranty request in their loan files. Lender must submit to E-Tran all terms and conditions required by E-Tran data fields. Lender must list in E-Tran at least 81% of the total direct and indirect ownership of the Applicant. The ownership percentage of married spouses and minor children must be combined. SBA Form 1919 includes information on 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. CAPLine Non-Delegated and PLP Processing: Program forms can be found at www.sba.gov/document.
SOP 50 10 8 B.Ch3.D.1.i
i. Centralized 7(a) Loan Submission Instructions can be found at the 7(a) Loan Guaranty Processing Center (“LGPC”) website along with other forms, telephone numbers and fax numbers: www.sba.gov/CitrusHeightsLGPC. ii. All CAPLine 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. PLP Lenders processing loans under their PLP authority must obtain and retain the documentation listed below in their file. Additionally, Lender must submit the information required in SBA Form 1919 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 and will either approve or decline the loan in E-Tran. In addition, Lender must submit as part of the Application for guaranty those items below emphasized in bold. i. 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. ii. Lender’s Credit Memorandum must address all requirements detailed in Paragraph C, Credit Standards in this Chapter.
SOP 50 10 8 B.Ch3.D.1.i.iii
iii. Owner Financial Statement (business or personal, as appropriate) 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. If the Lender requires owner financial statements for its similarly-sized, non-SBA guaranteed loans, these statements must be submitted to LGPC as part of the application. If the Lender uses a credit score to evaluate the owner financials, then the Lender does not need to obtain owner financial statements.
SOP 50 10 8 B.Ch3.D.1.i.iv
iv. 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. Interim financial statements must be dated within 120 days prior to submission to SBA. The following information must be provided: a) Year End Balance Sheet for the last 3 years, including detailed debt schedule; b) Year End Profit & Loss Statements for the last 3 years; c) Interim Balance Sheet, including a detailed debt schedule; and interim Profit & Loss Statement. v. Copy of Lease, if applicable; vi. A detailed listing of all assets purchased with loan proceeds; vii. A detailed listing of all collateral
SOP 50 10 8 B.Ch3.D.1.i.viii
viii. Provide the following if real estate is to be purchased with loan proceeds under a Builders CAPLine: a) Appraisal (see appraisal requirements in Paragraph C.3.e, Real Estate Appraisal Requirements in this Chapter); b) Copy of signed purchase agreement; and c) Lender’s environmental questionnaire (if applicable – see Section A, Ch. 5, Para. E, Environmental Policies and Procedures). ix. Franchise: For any Applicant operating under a franchise, license or similar agreement, refer to Section A, Ch. 1, Para. G., “Franchises”.
SOP 50 10 8 B.Ch3.D.1.x
x. 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.
SOP 50 10 8 B.Ch3.D.1.x.xi
xi. 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. CAPLine-Specific Application Requirements For all CAPLines, Lender must obtain the information outlined in Paragraph c. above. In addition, the Lender must obtain and provide the following as applicable for each type of CAPLine: i. Working Capital CAPLine: If the Working Capital CAPLine will be disbursed using a BBC, a sample Borrowing Base Calculation. If the Lender will not be using a BBC, Lender must provide a collateral basis calculation. ii. Seasonal CAPLine: a) Documentation of the seasonal nature of the business (i.e., month-by- month historical documentation of the needs); and b) Applicant prepared month-to-month cash flow projection for the upcoming 12 months. iii. Contract CAPLine: a) A project cost schedule depicting all direct material, labor, and overhead attributable to the contract to be financed. (Profit may not be included.) The schedule must illustrate each cost by line item; b) A current annual income statement depicting the changes (increases/decreases) in operating, investing, and financing cash flows to establish affordability and to confirm adequate cash flow for repayment; and c) A copy of the contract(s) being financed by the Contract CAPLine. iv. Builders CAPLine: a) Month-to-month cash flow for all work to be performed by Applicant; b) A letter from: i) A mortgage lender indicating that permanent mortgage money is available to qualified purchasers to buy such properties; ii) A real estate broker indicating that a market exists for the proposed building and that it will be compatible with its neighborhood; and iii) An architect, appraiser or engineer agreeing to make inspections and certifications to support interim disbursements. c) A letter from a Lender who has its own real estate lending department, staffed by personnel with appraisal and engineering experience may be substituted for one or more of the letters required in d)ii) above. E-Tran Terms and Conditions–- CAPLines.
SOP 50 10 8 B.Ch3.D.1.i
i. Zero Balance Period Requirements: With the exception of Seasonal CAPLines, there is no requirement that a zero balance be maintained for any specific time period on any CAPLines. A “clean up” period may be included in the E-Tran Terms and Conditions at the Lender’s option. ii. See Chapter 5, E-Tran Terms and Conditions through Disbursement for all 7(a) Loans, in this Section below, for additional SBA requirements for the E- Tran Terms and Conditions.
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