For SBA lenders
Short answer
Lenders must certify that they have performed appropriate due diligence, verified eligibility, adhered to prudent lending practices, and confirmed all information submitted is true and accurate to their best knowledge.
When submitting a loan for SBA guaranty, the lender certifies compliance with all SBA loan program requirements. These certifications affirm the lender has properly underwritten the loan, verified borrower and business eligibility, confirmed the use of proceeds, and taken appropriate collateral, among other requirements. These are now integrated into the E-Tran submission process.
In E-Tran, before final submission, the loan officer certifies that they have reviewed the application, confirmed the borrower is a small business, verified equity injection, performed the credit elsewhere test, and ensured the loan meets all 7(a) program requirements.
Insider move
Lenders face significant risk if these certifications are inaccurate, as it can lead to repair or denial of the guaranty. Therefore, a robust internal review process is essential to ensure compliance before certification.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on required forms (1919, etc.)
Terms in this answer
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