Complete Guide to SBA 1919 Form Section II for Assisted Living
Dec 21, 2024
Starting your own assisted living facility is a big and exciting step! But to make it happen, you need to secure funding. That’s where the SBA 1919 form comes in. It can feel confusing, like trying to solve a big puzzle, but don’t worry—I’m here to help!
This guide will focus on Section II of the form, which is all about the individual owners. We’ll break it down, step-by-step, so you know exactly what to do. By getting this part right, you’ll move one step closer to opening your own successful assisted living business!
Check out the video, too:
What Is the SBA 1919 Form?
The SBA 1919 form is a special document that you need to fill out to get a loan from the Small Business Administration (SBA). It helps the SBA learn more about your business and who’s in charge. The form has a few sections:
- Section I: This part is about the business.
- Section II: This section is about the owners (that’s what we’re talking about today!).
If you haven’t looked at Section I yet, check out our previous guide on it!
Why Section II Is So Important
Section II is all about you and anyone else who owns at least 20% of the business. The SBA wants to know:
- Who you are.
- Your background.
- If there are any financial or legal issues they should know about.
By filling this out correctly, you help the SBA understand that you’re a responsible and trustworthy business owner. This will make it easier for you to get the funding you need!
Step-by-Step Guide to Section II
1. Personal Details
Start with the basics. You need to provide:
- Your full name.
- Social Security number.
- Date and place of birth.
- Your home address and phone number.
- How much of the business you own.
Tip: Double-check your answers! Even a tiny mistake can slow things down.
2. Disclosures
Here, they’ll ask some personal questions. This includes things like your:
- Veteran status.
- Gender.
- Race and ethnicity.
You don’t have to answer these questions if you don’t want to. Just select “Not Disclosed” if you’d rather not share.
3. Legal and Financial Background
This part asks you yes or no questions about any legal or financial history. Questions like:
- Are you facing any criminal charges?
- Have you been arrested recently?
- Are you behind on child support?
Be honest! If you have to say “yes” to any of these, that’s okay. Just make sure you explain the situation and include any extra paperwork they ask for.
4. Citizenship Details
Next, you’ll need to share your citizenship status. If you’re not a U.S. citizen, they’ll ask for your USCIS registration number. Make sure everything is correct because mistakes can slow down your application.
5. Initial and Sign
Don’t forget to:
- Initial certain sections (numbers 17, 18, 19, and 20).
- Sign the form with your actual, handwritten signature.
Most lenders won’t accept electronic signatures, so make sure you do it by hand!
Common Mistakes to Watch Out For
It’s easy to make little mistakes when filling out forms. Here are some common pitfalls to avoid:
- Missing Initials: Remember to initial in the right spots!
- Leaving Questions Blank: Answer every question, even if it doesn’t seem important.
- Mismatched Details: Make sure all your information is the same throughout your loan application.
Why This Matters for Your Assisted Living Business
Getting your SBA 1919 form right shows lenders that you’re serious about your assisted living business. They need to know you’re someone they can trust with their money. This form helps them decide if they want to approve your loan.
Running an assisted living facility takes a lot of financial planning. The SBA uses this form to see if you’re ready to manage all the responsibilities that come with it. So, take your time, fill it out carefully, and don’t hesitate to ask for help if you’re unsure about any part!
Final Tips for Success
- Use the Assisted Living Investing tools to stay organized.
- Talk to your SBA lender if you have any questions.
- Check your work before sending in the form!
By following this guide, you’ll be one step closer to opening your very own assisted living facility. Good luck, and remember—you’ve got this!
Next Step?
If you need help creating a business plan for your assisted living business, download our Business Plan Checklist to ensure you have a solid business plan to help launch your assisted living business.
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
Show full transcript 👇
Transcript
00:00:00
A big part of an SBA application is the 1919 form. It's a standard form, but it can also feel a little bit daunting when you look at it. And in today's video, we're going to review how to fill out section two of the SBA 1919 form. Hey everybody, I'm Brandon Gustafson. I own and operate two assisted living facilities, and I created this channel to help people just like you learn the ins and outs of investing in assisted living. Welcome to assisted living investing.
00:00:36
hey welcome back to the channel in our last video we talked about filling out an sba 1919 form section one i gave you a full tutorial um in today's video we're going to be getting into section two of the 1919 form before we get into the tutorial i want to just kind of reframe and give a little bit more background on what the 1919 form is just so that you make sure that you have the context as we're going through and filling out this form for you
00:01:03
So what is the 1919 form? This form is a standard SBA form, and it gives SBA a high-level overview of the company that will be receiving the funds, so your company, and the individuals that are involved with the business. And there are two main sections. The first section, which we talked about in our last video, goes over the borrower information. This is the information on the business. So make sure you go and watch that video.
00:01:30
If you're looking for that portion of it in today's video, we're going to be getting into section two of the 1919 form, which is more of the individual owner information. And this is done at an individual level. So each individual business owner that has at least 20% ownership in the business is going to have to fill out section two of the 1919 form. And then they'll have to sign it at the end.
00:01:53
Once you turn this form in to the SBA lender, the SBA is going to use this form just to make sure that there's no outstanding legal issues for any of the business owners or the business itself. They use this information to do background checks and just make sure things are set up the way that they should be set up.
00:02:13
and this form also gathers some really high level information on the amount of money that is being requested and how many jobs it's going to create so you're giving them kind of a pro forma which i will link above i've done a video on my calculator and how you can use it but this form is also going to ask for just high level information in it and i'll get into that in the tutorial on how i generally will fill that information out as we go through the the tutorial
00:02:42
Let's jump into the tutorial. All right, welcome to the tutorial on section two of the 1919 form. So you'll see, again, this is just one big long document that we've been going through. So this is gonna be page six of this document, but this is section two. And this is the information on the individual owner. So anybody that owns at least 20% in the business is going to need to fill out this form and send it over into your SBA lender.
00:03:10
A lot of this, again, is pretty straightforward information, but it's information that the SBA needs to gather. And this section is not quite as long as section one. It's a little more straightforward. A lot of the same types of information, though, that they're gathering here that you need to be aware of. So let's jump into this really quick. So the first thing you're going to do is your full legal name, social security number, the date of birth,
00:03:37
your date of birth, your place of birth, your home address, home phone, percent of ownership, and the applicant legal name. So just really high-level information. If you have a question, I'll link up above my video on how I have structured my entities. If you have questions on how to fill things out because you have an entity that is owner rather than yourself, I would reach out to your lender and ask them how they need you to fill out this information.
00:04:07
Next is a disclosure, and this is voluntary and has no bearing on the credit decision. So you can mark not disclosed if you choose to do so, but this is your veteran status, gender, race, and ethnicity. So you're just filling in based off of the information here and putting in the corresponding number or letter into those locations.
00:04:33
Number 17 is, are you subject to an indictment or criminal information? Has anybody brought criminal charges against you? Yes or no. You just need to make sure that you're putting that information in there. Have you been arrested in the last six months for a criminal offense? And for any criminal offense other than a minor violation, have you ever...
00:04:57
done any of these things like has anything happened here so you're marking yes or no here something that is extremely important for you to do and i'm going to let me do number 20 really quick as well your citizenship you need to indicate that information here and if you have a uscis registration number put that in here along with your country of citizenship but you'll notice something and this is extremely important you don't want to miss this on the form is these sections right here there there there and
00:05:27
there you need to print this off and you have to initial these locations if you do not do it they will send it back to you and ask you to do it so make sure that you do that on the first try something that I missed my first time around and we got to the point that we were like ready to close and I had to go back in and find my old 1919 forum and I think I had an issue finding it and I had to
00:05:52
refill it out and print it off and initial these. It was just kind of a pain. So make sure you just do that from the get go. It will save you a lot of time. So make sure you print it off anywhere where it says initial. Make sure you're doing that in these sections. Number 17, 18, 19, and 20. Cannot stress that enough. I went through this process with my brother recently and I told him he needed to do it and he missed one of them. So make sure you do it in all four of those sections and get what you need done there.
00:06:21
Let's move down here then into page number seven. So these are just a few more yes or no questions. So the first one is, have you been suspended or debarment from a federal department or agency? If yes, then you can't apply. Are you delinquent on any child support? If yes, then you cannot get SBA.
00:06:47
If there's an ownership in business defined as an affiliate, make sure that you are providing that information. Again, if you have questions about your affiliate businesses, I would reach out to the SBA lender and explain to them what they need and then make sure you're just giving them the information that they need. If you're just a brand new business, then you don't need to worry about this one.
00:07:10
Have you ever filed for bankruptcy? If yes, then you need to provide those details. So it's not a straight no like these other two, but it is something you need to provide details on. Same with this section, which is around legal action or divorce. You need to make sure that you are giving that information.
00:07:28
This is the exact same question as section one above. Essentially, do you have an SBA loan with somebody else or on another business or anything like that? Delinquent or is it in default? And if yes, then you need to provide details on that information. And then page eight is just the section that you're going to print off and need to sign, print into your title and the date.
00:07:50
These do need to be wet signatures in my experience. You can talk to your lender, but in my experience, they need it printed off, signed, and then scanned back in. An electronic signature is not going to fly with them in most cases. Your lenders might be different. And as of the recording of this video in the first half of 2022, this is my understanding of the requirement. That could certainly change at some point in the future as things progress.
00:08:19
turn to be more digital rather than being paper-based. So that is the tutorial on section two. Make sure you leave comments down below, any questions that you have, and I will get to you as quickly as I can. And I hope this was helpful for you as you are trying to get funding for your assisted living facility or your small business.
00:08:41
I hope you found that tutorial to be really helpful as we were going through section two and that section one was helpful as well. If it was, make sure you smash that like button and subscribe to the channel so you can continue to receive helpful information like this to help you get your own assisted living facility or really an SBA loan for any small business that a lot of this information is applicable as you're going through that process. In our next video, we're going to be getting into listing a property for sale on BizBuySell.
00:09:11
which is something that I've had a lot of questions on since my video on this by selling what it is and how it works. Make sure you go and watch that video. If you are interested in learning more about investing in assisted living, make sure you visit me on assistedlivinginvesting.net. I have free resources over there and I also have ways for you to kind of get in contact with me and we can chat and help you through the process of getting your own SBA loan.
00:09:36
And remember, it doesn't take a lot, just a little bit. Just keep making progress step by step by step. If you are consistent, I promise you that you will be successful. Thanks for watching and have a great day.
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