The SBA Lender verifies that the Applicant filed its federal business tax returns (an Applicant that has not filed is ineligible) and that the financial statements it relied on agree with them, obtaining IRS transcripts (via IVES or a fully completed IRS Form 8821 naming the Lender, and any LSP, as designee; never filed by the borrower or its tax preparer; transcript types showing amendments) and reconciling differences: for 7(a) before first disbursement, for 504 before requesting debenture funding. It covers the last 3 years (industry size standard) or 2 years (alternative standard) for the Applicant or OC, or all years of a younger business, excluding the latest year if its year-end is within 6 months of application (with any extension and proof of estimated tax payment), plus the Schedule C of a sole proprietor and the seller's data in a change of ownership (third-party verification where a division is bought). It follows up after 10 business days with a second request. If the IRS has no record, it disburses only with proof of filing and of payment or refund matching the return (or, for a missing middle year, a documented good faith basis); for amended returns it obtains the signed return and filing evidence. Delegated 7(a) lenders who disburse unverified risk guaranty repair or denial, and CDCs cannot submit the debenture closing package until reconciled. SBA Express and Export Express lenders verify filing and size always and reconcile when they used business financial data; territory filers are verified with receipt-stamped territorial returns.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.