If you plan on applying for an SBA Loan, you’ll be asked to provide an SBA Form 413 Personal Financial Statement (or a PFS). An SBA Form 413 Personal Financial Statement is a balance sheet that displays your assets and liabilities to show your net worth. It’s important that your Personal Financial Statement is filled out carefully and accurately (not conservatively or optimistically – but ACCURATELY. ) Your lender is going to rely on your accuracy in the beginning, but will eventually ask for proof – so there is no benefit in overstating or understating the facts.

Where to Download the SBA Form 413

You can download the latest version of the SBA Form 413 Personal Financial Statement directly from the SBA website by clicking here.

Getting Started

The SBA Form 413 Personal Financial Statement is formatted for digital input for your convenience. This means that the easiest way to complete the form is on a computer. Simply download the PDF form from the SBA website, and click on each box to enter text.

It is important to complete it on a computer, because the form contains automatic calculations that do the math for you. This saves you time and helps with accuracy. Then, when you’re finished, you can simply print the form out to sign or complete with an e-signature.

If you’re unable to complete the form on a computer, then pay close attention to the bottom line calculations for the ASSETS and LIABILITIES columns. (More about this at the end of the respective sections.)

Who Needs to Complete SBA Form 413?

If you’re applying for an SBA 7(a) loan, SBA 504 loan, or an SBA Disaster Loan, you’ll need to include a personal financial statement as part of your loan application. Here’s who specifically needs to fill out their own personal financial statement:

• • • Owner/future owner of the business
    • Any current/future owner or limited partner who holds at least a 20% equity stake in the business
    • Anyone or any entity guaranteeing the loan

If your SBA loan type requires you to submit Form 413 and you file a joint tax return, you must include your spouse’s financial information. This doesn’t mean your spouse becomes a guarantor on the loan, but it does inform the SBA and your lender of any shared assets and liabilities. You’ll need to report combined assets and liabilities unless you have a legal document, like a prenuptial agreement, that separates certain assets.

Gathering Your Supporting Documents

To make things easier, gather all your financial documents before you start. You’ll need paperwork that shows your assets and liabilities for the most recent full month. For example, if you’re filling out the form on September 8, 2024, you should collect documents dated through August 31, 2024.

Here’s a list of documents you may need:

• • • Checking and savings account statements
    • IRA, 401(k), and other retirement account statements
    • Life insurance documents showing the current cash surrender value
    • Documents for stocks, bonds, or other investments, showing their current value
    • A pay stub showing your current annual salary
    • Statements for disability income, pensions, real estate income, or other income sources
    • Mortgage, auto loan, credit card statements, and any other loan documents showing your account number, payment amounts, and balances

Once you’ve gathered these documents, keep them handy. You’ll likely need to reference them throughout the loan application process. Having everything organized makes filling out the form much easier, and it could take as little as 15 minutes, depending on your number of assets and liabilities.

Page 1 – Choosing the Loan Type or Program

On the first page of Form 413, you’ll check off the boxes that apply to the type of loan or program you’re applying for:

• • • Check the first box if it’s for an SBA 7(a) or 504 loan or a surety bond
    • Check the second box if it’s for a disaster business loan
    • Check the third box if it’s for the Women-Owned Small Business (WOSB) Federal Contracting Program
    • Check the fourth box if it’s for the 8(a) Business Development Program.

Note: You might need to check multiple boxes.

This section is pretty self explanatory. First, enter your name, address, phone number, business name, business address, etc.

What to Do if You Haven’t Formed Your LLC/Corporation Yet

If you are in the process of finalizing your LLC or corporation while completing the personal financial statement,  just put “TBD” for To Be Determined in those lines. Leave the business type boxes unchecked. 

For the line that says “This information is current as of” – put today’s date, as it is the day you are verifying the numbers you are entering.

In this final line, only check the boxes IF you are applying for the SBA Woman-Owned Small Business Program. If you are applying for anything else, like an SBA 7(a) or 504 loan (even if you are a woman), leave both of these boxes unchecked.

Cash on Hand & in banks

Include all of the cash you have in your checking accounts, in your wallet, under your mattress, in a shoebox, etc. These accounts should only reflect personal funds, not business bank accounts or funds. If you are married, include all joint accounts.

Savings Accounts

Similar to checking accounts, include all current balances of your savings accounts. If you are married, include all joint accounts.

*Note: when verifying your liquidity, underwriting will verify your liquidity via three (3) months of bank statements. Therefore, the cash reported on these lines must be seasoned to be utilized as equity for the loan. This is referred to as seasoned funds and these are the only types of cash accepted for the equity injectioni at closing. This practice was put in place to track funds and make sure they were legally obtained, and to thwart any investments that are not made in the best interests of the security of the United States.

IRA or Other Retirement Account

Include the total current value of your IRA or Retirement accounts. If your spouse is a guarantor on the loan, include their retirement account balances as well. Be prepared to provide details in Section 5.

Accounts & Notes Receivable

Did you lend your cousin Bobby the down payment for his house, which he plans to pay back to you in increments? This is considered an Account or Notes Receivable. Be prepared to explain this further in Section 5.

Life Insurance – Cash Surrender Value Only

This is the one item that is flubbed the most! For this line, only include WHOLE LIFE INSURANCE cash surrender value only. In this case, Term Life Insurance is not an asset, as you can’t borrow against the policy like you can with Whole Life Insurance. (Learn more about the difference in Life Insurance policies in this article.)

Stocks and Bonds

Include today’s value of your stocks and bonds. These should not include the same stocks that you already listed for your IRA/Retirement Accounts. Be prepared to provide details of these accounts in Section 3.

Real Estate

Include the total value of all your real estate. This includes your primary residence and any income properties. If you partially own a piece of real estate, then include the property’s value times your percent ownership. Be prepared to provide details in Section 4.

For example, if you own a $1 million income property with your 3 brothers at 25% ownership apiece, then you would add $250,000 (and you would add in 25% of the mortgage balance, but more on that later!)

Automobiles

This line is for automobiles that you own or are financing to own. Do not include vehicles that you are currently leasing! On this line, insert the total  resale value of your automobiles in today’s current market. Consider their make, model, trim, year, mileage, condition, etc. Check a resale source like Kelly Blue Book or Carmax if you’re unsure.

If you’re married, you can count all family vehicles, as they are considered joint assets. Just be sure not to include any vehicles that are for/paid for by your business or work. If the vehicles are owned by your company, you should include them on the company/entity’s financial statement (also known as a Balance Sheet) — not your personal financial statement.

Other Personal Property

This is the line to include any other high-ticket items that can increase your net worth. Not only is it the space to put your motorcycle or boat, it’s also the space to include other items you might not have considered – like the valuables in your home(s).

Consider this: if you were to sell everything in your house, how much money would you make? Consider appliances, furniture, electronics, and art. Be prepared to provide details in Section 5.

Separately, you can also include high-end jewelry and watches as Personal Property. As mentioned, be prepared to provide details in Section 5.

Other Assets

This line is vague, we know. For the business owner, we recommend including today’s valuation of your business(es). The same rules apply as with the real estate – if you are a partner or partial owner, you. can only include your percent of the value of the business.

For example, if you own 25% of a $1 million business, you would only count $250,000 of that business’s value.

TOTAL

This one is pretty easy! Add up all of the numbers in the column to total your ASSETS.

Accounts Payable

This line should include all short-term debts such as any balances on utilities or services. This is also the place to include personal loans (like the one from your Uncle).

Notes Payable to Banks and Others

Here is where you put your outstanding credit card debt, personal lines of credit, and consolidation loans. Make sure to also list and explain each note in Section 2.

Installment Account (Auto) 

This line (and its subline) corresponds to the automobiles that you previously listed in the ASSETS column. Here, you should place the total balance of all of your car loans. In the small line on the right that says “Mo. Payments” – put the total monthly payment due for all of your car loans each month.

If you own your cars free and clear, then don’t put anything in these lines.

Installment Account (Other)

This line is for the balance of your boat loan, motorcycle loan, etc. Make sure to include your monthly payment on the “Mo. Payment” line underneath.

Loan(s) Against Life Insurance

This is the place to include balances for personal loans against your Whole Life Insurance.

Mortgages on Real Estate

Here is where you put the balance of all of your real estate loans. The same rules from the ASSETS column apply – if you only own a fraction of a property, then you’re only responsible for that fraction of the mortgage. Make sure to include the details of each mortgage in Section 4.

Note: If you have a HELOC, or Home Equity Line of Credit, add that balance it to your total Mortgages on Real Estate. Then, provide details in Section 4 (see notes for Section 4. Real Estate Owned.)

Unpaid Taxes

This one is pretty self explanitory. Explain your unpaid taxes/payment plans in detail including the type of tax, the amount owed, due dates, plus any tax liens on your property in Section 6.

Other Liabilities

Use this line to cover any other Liabilities not covered elsewhere in this column. Explain them in Section 7.

TOTAL LIABILITIES

Add up all of the lines above to get this total. If you’re completing the form on a computer, this will calculate automatically.

NET WORTH

This is the sum of your TOTAL Assets minus (-) your TOTAL Liabilities. If you’re completing the form on a computer, this will calculate automatically.

TOTAL (must equal total in the ASSETS column)

This adds the TOTAL LIABILITIES and the NET WORTH together again – which should equal the sum of your total assets.

Salary

Place the total of your household’s annual salary here. If you are married, include your spouse’s salary.

Net Investment Income

Put the total annual income earned from dividends and interest from stocks, bonds and other investments.

Real Estate Income

Insert the total annual income earned from any and all real estate investments, after expenses.

Other Income (describe below)

On this line, include the annual total of any other income you receive, including pensions, social security, and alimony. It is not recommended to include child support on this line or on this form. If you own any active or passive businesses from which you receive dividends, put the income from them here as well.

Description of Other Income

In this section, describe any income included in the “Other Income” line above. You can also break down each respective salary and real estate income by property here, if desired.

Contingent liabilities are liabilities that are only owed in the case of a certain event. this is why they are kept separate from the LIABILITIES Column.

As Endorser or Co-Maker

Include contingent liabilities you carry as a co-signer on any auto loans, apartment leases, etc.

Legal Claims & Judgements

Include any penalties that may be due pending the outcome of an active legal case against you.

Provision for Federal Income Tax

Include the amount here that you are witholding for taxes, in the case that you expect a higher income in the following year.

Other Special Debt

For any other contingent liabilities, place that amount on this line.

In this section, you will list your personal (not business!) credit cards, student loans, and lines of credit. If you have more items than lines available, attach an addendum. Make sure to label it “Addendum Section 2” – signed and dated – and attach it to the PFS when submitting it. (Also write the name of the addendum in the first line – “See Addendum Section 2” or “Refer to Addendum Section 2”.)

In this section, list your personal stocks and bonds (not inclusive of your Retirement or Roth IRA. accounts.)

If you have more items than lines available, attach an addendum. Make sure to label it “Addendum Section 3” – signed and dated – and attach it to the PFS when submitting it. (Also write the name of the addendum in the first line – “See Addendum Section 3” or “Refer to Addendum Section 3”.)

In this section, list the real estate properties you own, including both residential and commercial.

Starting in column A, provide a descriptive name for the property. (It is customary to start with your “Primary Residence” or family home in the column for Property A.) Then, follow the instructions to add the address, date of purchase, original price, and more.

If you don’t have a recent appraisal on your property, you can estimate its value by calling a local realtor for an estimate using Comparitive Market Analysis (CMA). You can also use an online appraisal website such as Redfin, Zillow, Realtor.com and more.

In the space for Status of Mortgage, be sure to write “current”.  (Note: If you are not current on your mortgage, you will not qualify for an SBA loan.)

If you have more properties than columns available, attach an addendum. Make sure to label it “Addendum Section 4” – signed and dated – and attach it to the PFS when submitting it. (Also write the name of the addendum in the first line – “See Addendum Section 4” or “Refer to Addendum Section 4”.)

This section is a very important descriptive section for the SBA Form 413. You should describe several lines included in the ASSETS column on page 2, including:

Describe IRA or Other Retirement Accounts

List your retirement accounts and your spouse’s retirement accounts, respectively (as you reported in the ASSETS column.)

Describe Accounts & Notes Receivable

List the details of any outstanding personal loans you’ve made to family or friends (as you reported in the ASSETS column.)

Describe Automobiles

Whereas these numbers are totaled in the ASSETS and LIABILITIES columns, you’ll want to separate them out here so the underwriter can see each respective  vehicle’s values and debts. For each vehicle, be sure to include the:

• • • Year
    • Make
    • Model
    • Current resale value (instructions above)
    • Loan balance
    • Monthly payment for each of your vehicles

Describe Other Personal Property

Include the estimated value of any items in your home (or rental properties) that could be converted to cash. These may include:

• • • Jewelry
    • Art
    • Household appliances
    • Electronics
    • Furniture/Antiques
    • Collectibles/Memorabilia
    • Designer Clothing
    • Handbags/Leather Goods

Be prepared to provide documentation for high-ticket items valued at more than $2,000 – in case the underwriting team asks for proof.

Other Assets

As instructed above, include a list of your businesses owned here, along with their respective valuations. If you’re unsure of the current valuation, you can try using these two estimations:

• • • Calculate three times the business’s annual gross income
    • Considering what you know now, how much would you pay to acquire this business?

If you run out of room in this section, attach an addendum. Make sure to label it “Addendum Section 5” – signed and dated – and attach it to the PFS when submitting it. (Also write the name of the addendum in the box – “See Addendum Section 5” or “Refer to Addendum Section 5”.)

In this box, be sure to include any unpaid taxes. When detailing unpaid taxes, you should include the following information:

• • • Type of tax that remains unpaid
    • Entity to whom the tax is owed
    • Due date for the tax
    • Total amount owed
    • Any property liens associated with the unpaid tax
    • Any active payment plans

Do not include any taxes that are anticipated but not yet due.

In the “Other liabilities” section of the SBA 413 personal financial statement is where you should list any debts that do not fit into other categories on the form. When completing this section, be sure to include:

• • • Description of the liability
    • Total amount owed
    • Name of the person or organization to whom the debt is owed
    • Due date for the debt
    • Monthly payment amount for the debt

For substantial amounts, consider attaching bills or other supporting documents.

For each life insurance policy with a cash value, provide the following details:

• • • Name of the insurance company
    • Beneficiaries of the policy
    • Face amount of the policy
    • Cash surrender value of the policy

Additionally, you should authorize the SBA, lender, or surety company to conduct inquiries to confirm the accuracy of your information and assess your creditworthiness.

Congratulations! You’ve come to the end of the SBA Form 413 Personal Financial Statement. Be sure to sign and date with your printed name and Social Security Number.

If you are married, your spouse must sign this form – regardless if they are a co-guarantor or not part of the loan application at all. (They are essentially endorsing you to list their shared/joint assets.

Just to be clear (legal): by signing this form, you’re officially stating that everything you’ve filled in, and any extra documents you’ve provided, are true and accurate to the best of your knowledge. This isn’t just a formality—if any of the information turns out to be false or misleading, it could lead to serious legal trouble, including criminal charges.

The SBA and its partners, like lenders or surety companies, will rely on the details you’ve provided to make important decisions about your application for things like loans, surety bonds, or participation in special programs such as the Women-Owned Small Business (WOSB) or 8(a) Business Development programs. So, please make sure you’ve double-checked everything and that you’ve read all the attached legal statements carefully.

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