SBA 856 Forms
What Is SBA Form 856 Series?
The SBA 856 forms include the SBA Form 856 (Disclosure Statement Leveraged Licensees) and the SBA Form 856A (Disclosure Statement Non-Leveraged Licensees). The latest versions of both the SBA Form 856 and SBA Form 856A were released by the Small Business Administration (SBA) in May 2012. The statements have to be completed by the management of a Small Business Investment Company (SBIC) and addressed to an SBA examiner before submission.
The main purpose of the SBA Form 856 is to submit the required information about any borrowed funds of license holders. The information about certain obligations, transactions, and relationships is collected as part of an on-site examination of the SBIC.
The SBA Form 856A is used for documenting information about the non-borrowed funds of license holders. All SBIC representatives filing the form are subject to fines and penalties for providing false on incomplete information.
SBA Financial Disclosure Statement
Both of the financial disclosure statements are necessary for the participants of an SBIC. The information submitted through the forms is needed to ensure that all participants of the SBIC program are financially independent and will be able to return funds.
Providing knowingly false statements on both the SBA Form 856 and SBA Form 856A can lead to fines, imprisonment of up to 30 years, and civil fraud fees of three times the government’s loss.
SBA SBIC Program
These two forms in the SBA 856 series are used with the SBIC program only. The SBA SBIC Program is a way for the SBA to indirectly invest in small businesses by providing funding to some qualified investment management firms.
The SBIC Program application process consists of two parts meant to evaluate the qualifications of SBIC applicants. All future applicants are encouraged to schedule a pre-screening interview with the SBA Investment Division to assess their compliance with the program and receive the necessary guidance on completing the application forms.