Small Business: SBA Form 912 revision aids Homeland Security Department

Sam Jones is the Region VII SBA Administrator.

To underscore how the U.S. Small Business Administration is working with our new Homeland Security Department, I want to point out a revision we made in October to SBA Form 912, Statement of Personal History. At face value, this information means nothing to you. In fact, had I not decided to tell you about this change, the vast majority of you may never have noticed it.

But, you could be positively affected by its implementation, and I want to tell you how.

SBA uses Form 912, a Statement of Personal History, in making character and credit eligibility decisions in determining whether to guarantee or make a loan, guarantee a surety bond, certify a firm for section 8(a) program status, issue certificates of competency, or for other forms of SBA assistance.

The change to SBA Form 912 addressing the status of aliens was changed, as recommended by the U.S. Immigration and Customs Enforcement (formerly part of the Immigration and Naturalization Service), to reduce the possibility that illegal aliens can use SBA programs to defraud the American public.

SBA Form 912 was revised to further address the legal status of aliens. The previous version of the form asked the "yes" or "no" question: are you a U.S. citizen? The form was revised to add a follow-up question for those who indicate they are not a U.S. citizen, asking whether respondents are "lawful permanent resident aliens" or "legal permanent resident aliens." If the applicant for SBA services did not indicate they were lawful permanent resident aliens, services would be denied. If they indicated they are, all non-U.S. citizens applying for SBA assistance must then continue to provide their alien registration number.

This is an important revision, and SBA district offices are making sure SBA Form 912 is being used by their participating lenders or surety bond guarantee companies. In addition, we are asking lenders to make sure they comply with all other requirements of SBA's Standard Operating Procedures when determining the eligibility of businesses owned by persons who are not citizens of the United States. If lenders or sureties have any questions regarding the change, we are asking them contact their nearest district office.

While SBA has always denied services to those who are not U.S. citizens, these safeguards which ask for small changes in the way SBA provides services, guaranteed loans and other services, mean quite a bit in the total planning for citizen protection. They mean less likelihood of an illegal alien entering one of SBA's Business Information Centers and using its free computers for illegal or possible destructive activity. The changes significantly decrease the likelihood of federal government complicity in helping illegal operations in the United States.

Luckily, we have an active Homeland Security Department, willing to dot the "i's" and cross the "t's" across all our federal agency lines and one with enough open communication to affect real and lasting changes for the benefit of the protection of Americans.