SBA Form 793, Notice to New SBA Borrowers
What Is SBA Form 793?
SBA Form 793, Notice to New SBA Borrowers is a document issued by the Small Business Administration (SBA). The SBA is an independent United States federal government agency. It helps small businesses by providing free counseling, guaranteed and disaster loans, and government contracts.
It is provided to for-profit organizations qualified as small businesses when they are requesting a guaranteed loan under Section 7(a) for the first time. The document notifies the recipients of the SBA financing about all obligations they take by lending money via this agency. The actions needed to show compliance with rules and requirements are indicated in the SBA 793.
This document is not considered a Common Form. It is required in order to obtain or retain the SBA benefits. At present, no copies of the SBA Form 793 are electronically available; neither can this document be electronically submitted. A printable version of the form is available below for reference:
Notice to New SBA Borrowers
The main purpose of the SBA 793 is to provide information to the borrowing institutions on how to show evidence that the debtor complies with the requirements of Parts 112, 113 and 117 of the SBA Rules and Regulations.
The authorized officials may examine all the facts carefully, as well as records and practices related to the operation of the small business. It can be done any time during the lifetime of a specific loan, in order to check the actual compliance with nondiscriminatory regulations.
The necessity of such inspection may arise when a complaint of discrimination is lodged against the business. In this case, the designated officials will check all the records requested in the notice and borrower’s compliance against all the rules and regulations the borrower was informed about via the SBA 793.
The subsections 112.9, 113.5 and 117.9 of the SBA nondiscriminatory regulations state that all recipients of the financial assistance are obliged to keep records that can enable authorized officials to ascertain whether the borrowers follow or have followed all the rules and regulations they were noticed about for the length of the loan. In particular, it is necessary to keep all the application and employment records, current payroll records, and other papers required for prudent conduct of business. Besides, during the compliance review, the records like admission forms that demonstrate to which extent members of minority groups are the beneficiaries of the borrower’s services are required too.
In addition to that, the recipient is obliged to display posters indicating that the specific company is an equal opportunity firm. The poster must be visible to the employees, job hunters, and the general public. The guarantee of equal opportunities is very important for all borrowers and sub-recipients of the financing. The form contains the enclosed checklist that includes varied components of necessary actions.
In case the recipient experiences any difficulties with the form, needs some additional information or assistance or just has further questions, it is recommended to contact the SBA officials for help and explanations. All the contacts, including mailing addresses, email addresses, and phone numbers can be found on the SBA official website. The website also contains the list of district offices the individual can visit for a consultation.