Lender's Application for Loan Guaranty
The lender's submission to SBA describing the loan structure, use of proceeds, eligibility determinations and credit analysis summary for 7(a) guaranty approval.
The lender's authorized officer. Brokers do not sign Form 1920 but typically supply most of the content.
Section by section
- 1
Loan terms
Amount, maturity, interest rate and spread over the base rate, guaranty percentage, and whether the loan is standard, small, Express or another delivery method. Terms must align with SOP 50 10 maximum maturities: 10 years for working capital and business acquisition, 25 years for real estate.
- 2
Use of proceeds
Itemized sources and uses including purchase of real estate, construction, equipment, inventory, working capital, debt refinancing and change of ownership, each supported by a document in the package.
- 3
Eligibility
Size standard, type of business, credit elsewhere test, personal resources of owners, franchise status, affiliates, citizenship and character. The credit elsewhere narrative must explain why the borrower cannot obtain the loan on reasonable terms without a guaranty.
- 4
Guaranty fee and lender certifications
Upfront guaranty fee schedule based on loan amount and maturity, annual service fee, and lender certifications regarding agent fees, which tie directly to Form 159.
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