Summary

SBA Form 413 (the Personal Financial Statement) is a standard form used in many SBA loan applications and certain SBA contracting programs to understand an applicant’s personal financial picture. It asks for a detailed snapshot of your assets, liabilities, income sources, and related details so the lender and SBA can evaluate creditworthiness and repayment ability.

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📄 What SBA Form 413 Is and Why It’s Used

SBA Form 413, officially called the Personal Financial Statement, is used to document your personal finances in a structured way. The SBA and participating lenders rely on it to see what you own, what you owe, and how you earn income. It’s commonly required for SBA loans such as 7(a), 504, and disaster loans, and it can also be required for certain SBA contracting programs. The goal isn’t to “judge” your finances—it’s to confirm that the information in your application is complete and that repayment ability can be reasonably evaluated based on your overall financial situation.

Takeaways:

• SBA Form 413 summarizes your personal assets, debts, income, and other financial details for SBA-related applications.

• Lenders use it to assess creditworthiness and your ability to repay a loan.

• It may also be used for eligibility in certain SBA contracting programs.

Key Terms

• Personal Financial Statement: A document that lists an individual’s assets, liabilities, income, and net worth.

• Creditworthiness: A lender’s assessment of how likely you are to repay borrowed money based on financial history and current finances.

• Net Worth: The difference between total assets and total liabilities (assets minus debts).

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👥 Who Needs to Complete SBA Form 413

If you’re applying for an SBA 7(a) loan, 504 loan, or disaster loan, you’ll typically be asked to complete SBA Form 413 (or a lender’s equivalent version). Form 413 generally isn’t required for SBA microloans because those are administered through intermediary partners with their own processes. For business applicants, the form is usually required for key stakeholders—such as proprietors, general partners, managing members of an LLC, and any owner with 20% or more equity. It’s also required for anyone or any entity providing a guarantee on the loan. If you’re married, the form commonly requires you to include your spouse’s assets and liabilities (and those of minor children) to reflect jointly held financial responsibilities—this doesn’t automatically mean your spouse is guaranteeing the loan, but it does help show the full household financial picture.

Takeaways:

• Form 413 is common for SBA 7(a), 504, and disaster loans, plus certain SBA contracting programs.

• It’s usually required for owners with 20%+ equity and other key decision-makers.

• Married applicants typically include spouse (and minor children) assets and liabilities to reflect joint finances.

Key Terms

• Guarantor: A person or entity that agrees to repay the loan if the borrower can’t.

• Equity Ownership: The percentage of a business you own.

• Managing Member: An LLC owner with authority to manage the business’s operations.

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🧾 Getting Ready: Documents to Gather First

SBA Form 413 asks for a lot of detail, and the easiest way to complete it accurately is to gather your financial documents before you start. Even if your lender doesn’t request every supporting document up front, having them on hand speeds up the process and helps you avoid guesswork. Commonly helpful items include bank statements, retirement account statements, life insurance paperwork (especially if there’s cash value), investment statements for stocks and bonds, pay stubs, and documentation of any additional income. You’ll also want statements for major debts—mortgages, auto loans, student loans, credit cards, and any other personal obligations. A practical rule of thumb is to work with financial information that’s current and recent, since outdated numbers can create inconsistencies and delays during underwriting.

Takeaways:

• Gathering documents first helps you complete Form 413 faster and with fewer errors.

• Bring both asset records (bank, retirement, investments) and debt records (mortgage, loans, credit cards).

• Using up-to-date statements reduces back-and-forth during underwriting.

Key Terms

• Underwriting: The lender’s process of reviewing your financial information to decide whether to approve the loan and on what terms.

• Supporting Documentation: Statements or records that help verify the numbers you put on the form.

• Current Financial Snapshot: A recent, accurate view of what you own and owe at the time of application.

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✅ Step-by-Step: Completing the Form from Top to Bottom

Filling out SBA Form 413 is easier when you treat it like a guided checklist. You’ll start by selecting the program type on the first page—this could be an SBA 7(a) loan, SBA 504 loan, disaster loan, or an SBA contracting program option. Next, you’ll enter basic personal and business details (names, addresses, contact information, business entity type, and the “as of” date for your financial snapshot). From there, you’ll list your assets, then your liabilities, then calculate totals and net worth. After that, you’ll provide income details and any contingent liabilities (items you might owe under certain conditions). Finally, you’ll complete the supporting sections (2 through 8) to provide additional details behind the numbers you entered earlier. The key is to be thorough, consistent, and honest—Form 413 is meant to match your real financial picture, not a “best-case” version.

Takeaways:

• Start by selecting the correct SBA loan or program category at the top of the form.

• Enter your personal/business information, then list assets, liabilities, and calculate net worth.

• Finish by adding income details and the supporting breakdown sections (2–8).

Key Terms

• “As Of” Date: The date your financial numbers reflect (your snapshot date).

• Contingent Liabilities: Potential debts you may owe if certain events happen (not always counted in the net worth calculation).

• Consistency: Making sure the totals and supporting details match across the form’s sections.

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💰 Listing Assets: What to Include and How to Value Them

The assets section is where you list what you own and the value of those items. This can include cash in checking accounts, savings (including money market accounts and CDs), retirement accounts, receivables (money owed to you), and the cash surrender value of certain life insurance policies. You’ll also list the current value of stocks and bonds, the fair market value of real estate you own, and the fair market value of vehicles (cars, boats, planes, etc.) that you own outright or are financing—typically not leased vehicles. There are also categories for other personal property (valuable items you could sell for cash, such as jewelry or collectibles) and other assets that don’t fit neatly elsewhere. When valuing assets, it helps to use reasonable, current estimates and round to the nearest dollar. If you’re married, you’ll typically include both your assets and your spouse’s assets where applicable so the form reflects the full household picture.

Takeaways:

• Assets include cash, savings, retirement accounts, investments, real estate, vehicles, and other valuables.

• Use realistic current values and keep your estimates consistent with supporting records.

• Married applicants typically include spouse assets where required to show joint financial resources.

Key Terms

• Fair Market Value: A reasonable estimate of what an asset could sell for in today’s market.

• Cash Surrender Value: The amount you’d receive if you canceled a cash-value life insurance policy.

• Receivables: Money owed to you by someone else (for example, if you personally loaned funds).

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🧮 Listing Liabilities: Debts, Payments, and Net Worth

The liabilities section captures what you owe. This can include notes payable to banks and others (such as credit cards or personal lines of credit), auto loans, student loans, personal installment loans, mortgages, and unpaid taxes. There are also categories for less common items, like loans against life insurance and other liabilities not covered elsewhere. As you list each liability, pay attention to both the outstanding balance and (when requested) the monthly payment. After you total your liabilities, you’ll calculate your net worth by subtracting total liabilities from total assets. If your liabilities are higher than your assets, that doesn’t automatically mean you’ll be denied. It simply gives the lender and SBA a clearer understanding of your obligations so they can evaluate repayment ability alongside the rest of your application.

Takeaways:

• Liabilities include credit cards, personal loans, auto loans, mortgages, unpaid taxes, and other debts.

• Totals matter, but so do monthly payments since they affect cash flow and repayment capacity.

• A lower net worth doesn’t automatically disqualify you—it’s one part of the overall evaluation.

Key Terms

• Liability: A debt or financial obligation you are responsible for paying.

• Installment Loan: A loan repaid in regular payments (often monthly) over a set term.

• Net Worth: Total assets minus total liabilities.

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📥 Income and Contingent Liabilities: What the Form Is Really Asking

After you list assets and liabilities, SBA Form 413 asks about your sources of income—typically salary, net investment income (like dividends and interest), real estate income (net income after expenses), and other income. If you receive other income from sources like a pension or Social Security, you’ll describe it in the space provided. The form also includes a section for contingent liabilities, which are potential financial obligations that could become real if certain events happen. Examples include debts where you acted as a co-signer or guarantor, pending legal claims and judgments, and certain tax provisions tied to expected changes in income. Depending on your situation, you might not have anything to report here—and that’s okay. The main goal is transparency so reviewers can understand both your steady income and any potential obligations that could affect repayment.

Takeaways:

• Report income sources clearly, including salary, investments, and net real estate income.

• Use the “other income” description box to clarify income that doesn’t fit common categories.

• Contingent liabilities are “if-this-happens” obligations and may not apply to everyone.

Key Terms

• Net Real Estate Income: Rental or property income after expenses are subtracted.

• Dividend/Interest Income: Earnings paid to you from investments like stocks, bonds, or savings vehicles.

• Co-signer/Guarantor Obligation: A debt you may have to pay if the primary borrower doesn’t.

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📝 Sections 2–8: Adding the Details Behind Your Numbers

Once the top-level totals are complete, SBA Form 413 asks you to provide backup details in sections 2 through 8. These sections help explain and support what you listed earlier—like breaking down credit cards and lines of credit, listing specific stocks and bonds, describing each real estate property you own, and providing notes for “other assets” or “other personal property.” There are also areas to explain unpaid taxes, other liabilities, and any life insurance policies included in your asset totals. You may not need to fill out every section in depth if certain categories don’t apply to you. But when they do apply, the supporting sections are where you make your numbers easier to verify—reducing confusion and helping the review move faster. If you need to attach additional pages, label them clearly as part of your personal financial statement and sign where required.

Takeaways:

• Sections 2–8 provide the itemized details that support the totals you entered earlier.

• Complete the sections that apply to your finances and leave the rest as “not applicable” when appropriate.

• Clear details and properly labeled attachments can help avoid underwriting delays.

Key Terms

• Itemization: Breaking a total number into the individual accounts or assets that make it up.

• Attachment: An additional page added to provide extra detail when the form doesn’t have enough space.

• “Not Applicable” (N/A): A notation used when a section doesn’t apply to your situation.

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🔍 Review, Sign, and Submit with Confidence

Before you sign the form, take time to review everything carefully. Small mistakes—like totals that don’t add up, missing account details, or inconsistent values—can create delays or trigger follow-up questions. It can be helpful to have a business accountant, attorney, or loan specialist take a quick look, especially if your finances are complex. Once you’re confident the information is accurate, you’ll sign and date the form and provide the requested identification details. If you own 20% or more of the business and included jointly held assets with a spouse, your spouse may also need to sign. Completing the form fully and correctly helps keep your application moving smoothly through underwriting.

Takeaways:

• Double-check totals and consistency across all sections before signing.

• A professional review can help catch errors that slow down underwriting.

• Signatures matter—make sure all required parties sign based on ownership and shared assets.

Key Terms

• Accuracy Check: A final review to confirm totals, supporting details, and consistency across the form.

• Application Delay: Slowdowns caused by missing, unclear, or inconsistent information.

• Required Signatory: Anyone who must sign the form due to ownership, guarantee, or joint financial reporting rules.

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Conclusion

SBA Form 413 is a detailed but straightforward way to show the SBA and your lender what your personal financial picture looks like—assets, liabilities, income, and supporting details. By gathering documents first, entering realistic values, completing the supporting sections carefully, and reviewing everything before you sign, you can reduce confusion and help your loan or program application move through the process faster and more smoothly.