SBA Form 413 is a form used by the Small Business Administration (SBA). It is also known as a Personal Financial Statement. It is completed when a small business owner wants to apply for a loan or surety bond with the SBA. It provides personal financial information for each partner or stockholder of a business who owns at least 20% of the business. It is also used for any party who provides a guaranty on the loan. The SBA will use the information to determine if providing you with a business loan is a good risk.
An SBA Form 413 is known as a Personal Financial Statement. It will be used by the United States Small Business Administration. This form needs to be completed by each proprietor for the business, as well as each partner or stockholder who owns 20% or more interest or stocks and any party who has given a guaranty on the business’ loan.
Each will need to include their personal identifying information and contact information. The next section will be for the personal financial information. That will include the party’s assets and liabilities. Assets such as stocks, real estate, and other taxes should be listed individually. Liabilities including unpaid taxes should also be described in detail. The SBA will verify this information to determine the state of the party’s finances and their creditworthiness.
The SBA Form 413 is commonly used by all SBA 7(a) or SBA 504 loan applicants. Â Each of the following people must complete SBA Form 413:
A SBA 413 contains the following sections:
Some important terms on the SBA 413 include:
When you complete your SBA Form 413, you should gather the following documents:
The assets section of SBA Form 413 summarizes information that you provided in prior steps and includes new information. Â Amounts should be rounded up to the nearest dollar.
Contingent liabilities are debts that will become your responsibility if a certain event happens. Â In the liabilities portion of SBA Form 413, you are summarizing the contingent liabilities reported in the Other Liabilities section.
To complete an SBA Form 413, you need to provide the following information:
If you are married and file a joint tax return, your name and your spouse’s name should be on the form.  You must report all joint assets and liabilities on the form, unless you have a legal document such as a prenuptial agreement that specifically separates certain assets.
If you exclude assets, they may be found in a background check. Â Excluding assets could hurt your relationship with your loan provider.
You only need to include certain types of life insurance policies that offer a cash surrender value upon cancellation.
The value of your personal property items is an estimate of the value that your would receive if you sold the item tomorrow.
You do not need to provide documentation for claims on your Form 413. Â Your loan provider may ask for supporting documentation during their due diligence phase.
Once you have completed the form, you should be sure that you have signed and dated it. Â Put it in a binder with the supporting documents. Â Be prepared to provide your lenders with copies upon request.
