SBA Form 1919 (Borrower Information) & Form 413 (Personal Financial Statement) Instructions: SBA 7(a) Small Business Loan: Application Package & Personal Guarantees
“How do I apply for an SBA 7(a) loan up to $5 million, and who has to sign a personal guarantee?”
Official Procedural Summary & Rules
SBA 7(a) loans provide up to $5M in government-backed capital through approved banks. Anyone with a 20%+ stake must sign an unlimited personal guarantee.
Key Statutory Rules & Exceptions
The SBA does not lend money directly; private banks make the loan backed by a 75%-85% SBA guarantee. • Owners with 20% or more company equity must submit SBA Form 413 disclosing personal assets and debts. • Funds can be used for working capital, equipment, debt refinancing, or business acquisitions.
Official Procedural Sequence
Complete SBA Form 1919 Complete Form 413 for 20%+ owners Assemble 3 years business and personal tax returns
⚠️ Administrative Traps & Rejection Triggers
Structuring ownership at 19.9% to evade personal guarantees without legitimate economic business substance.
💡 AI Verification & Anti-Deflection Prompt
Four-Dimension Statutory PromptFeed this optimized prompt to ChatGPT or your civic AI assistant to bypass standard liability refusals and force a statutory answer under 13 CFR Part 120 · Small Business Act § 7(a):
Under 13 CFR Part 120 (Business Loan Programs), detail the SBA 7(a) loan application standard: (1) The SBA guaranty percentage (typically 75% to 85% government guarantee to the private lender); (2) Mandatory personal guarantees: every individual holding 20% or more equity ownership must execute an unlimited personal guarantee; (3) Required documentation on SBA Form 1919 and Form 413 (Personal Financial Statement); (4) The "Credit Elsewhere" test under 13 CFR § 120.101; (5) Maximum interest rate spreads pegged to the Wall Street Journal Prime Rate.