SBA Form 413: Personal Financial Statement Guide
Everything you need to know about completing your Personal Financial Statement for SBA loans, business credit, and commercial mortgages.
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What is a Personal Financial Statement?
A Personal Financial Statement (PFS) is a comprehensive document that summarizes your individual financial position at a specific point in time. It lists all your assets (what you own), liabilities (what you owe), and calculates your net worth (assets minus liabilities).
Banks, lenders, and the SBA use this document to assess your creditworthiness and repayment ability when you apply for:
- Small business loans (SBA 7(a), 504, microloans)
- Commercial real estate loans
- Business lines of credit
- Business credit cards
- Investment property mortgages
- Personal loans and home mortgages
Key Point: Your personal financial statement should be current within 90 days of your loan application (30 days for SBA 8(a) program).
Who Needs to Complete SBA Form 413?
According to SBA requirements, the following individuals must submit a Personal Financial Statement:
The business owner must complete the form
Every general partner in a partnership
Managing members with 20% or more ownership
Corporate owners with 20% or more equity
Anyone providing a personal guarantee
Joint assets/liabilities must be included
SBA Programs That Require Form 413
The SBA uses the Personal Financial Statement to assess the financial situation of applicants for multiple programs and certifications:
SBA 7(a) Loans
The most common SBA loan program for general business purposes including working capital, equipment, and real estate.
Loan amounts up to $5 million
SBA 504 Loans
Long-term, fixed-rate financing for major fixed assets like real estate and equipment.
Typically used for commercial real estate purchases
SBA Disaster Loans
Low-interest loans for businesses affected by declared disasters.
Available for physical damage and economic injury
Surety Bond Guarantees
SBA guarantees bid, payment, and performance bonds for small contractors.
Helps small businesses compete for contracts
Woman-Owned Small Business Certification
Certification for federal contracting opportunities reserved for WOSBs.
Opens access to set-aside contracts
8(a) Business Development Program
Business development program for small disadvantaged businesses.
Includes federal contracting preferences and business support
What to Include on Your Personal Financial Statement
Assets (What You Own)
- Cash & Bank Accounts: Checking, savings, money market accounts
- Investments: Stocks, bonds, mutual funds, CDs, brokerage accounts
- Retirement Accounts: 401(k), IRA, pension plans (vested value)
- Life Insurance: Cash surrender value only (not term life)
- Real Estate: Primary residence, investment properties, land
- Vehicles: Cars, boats, recreational vehicles
- Business Interests: Equity value in businesses you own
- Other Assets: Jewelry, art, collectibles, receivables owed to you
Liabilities (What You Owe)
- Mortgages: Primary residence and investment property loans
- Auto Loans: Vehicle financing balances
- Student Loans: Education debt balances
- Credit Cards: Outstanding balances on all cards
- Personal Loans: Bank loans, family loans, 401(k) loans
- Business Loans: If personally guaranteed
- Unpaid Taxes: Any federal, state, or local taxes due
- Other Liabilities: Judgments, liens, alimony/child support
Net Worth Formula: Total Assets - Total Liabilities = Net Worth
How to Fill Out SBA Form 413 (Step-by-Step)
Gather Your Documents
Bank statements, investment account statements, mortgage statements, loan documents, tax returns, and insurance policies.
Enter Personal Information
Full legal name, current address, and the "as of" date for the statement (should be within 90 days of application).
List All Assets
Use current market values, not purchase prices. For real estate, use recent appraisals or conservative estimates.
Document All Liabilities
Use current outstanding balances, not original loan amounts. Include monthly payments and interest rates.
Review Your Net Worth
Verify calculations are accurate. Your net worth should be positive for most loan approvals.
Sign and Date
Sign the certification that all information is accurate and complete. False statements can result in loan denial or fraud charges.
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Our guided online generator walks you through each step and automatically calculates your net worth. Create a professional, bank-ready PFS in just 5 minutes.
Create Your PFS FreeCommon Mistakes to Avoid
Overstating Asset Values
Don't inflate real estate or vehicle values. Use conservative, realistic market values. Lenders will verify.
Omitting Liabilities
Leaving out debts can be seen as fraud. Include ALL debts, even small credit card balances.
Using Outdated Information
Your PFS must be current within 90 days. Use recent statements, not last year's numbers.
Mixing Business and Personal
Unless you're a sole proprietor, show business equity as an asset, not individual business assets/liabilities.
Forgetting Spouse's Information
SBA requires joint assets and liabilities with your spouse to be included on your PFS.
Personal Financial Statement for Real Estate Investors
Real estate investors frequently need Personal Financial Statements for various financing scenarios:
DSCR Loans
Debt Service Coverage Ratio loans for rental properties often require PFS for qualification.
Commercial Mortgages
Multi-family and commercial property loans require personal guarantees and PFS.
Hard Money Loans
Fix-and-flip lenders often request PFS to assess borrower strength.
Portfolio Refinancing
Refinancing multiple rental properties requires comprehensive financial documentation.
How to Report Investment Properties
- • List each property separately in the Real Estate Assets section
- • Use current market value, not purchase price
- • List corresponding mortgages in the Liabilities section
- • Your equity = Market Value - Mortgage Balance
- • Include rental income in your income sources if applicable
Frequently Asked Questions
How long does it take to complete a Personal Financial Statement?
With BankReadyDocs, you can complete a professional PFS in approximately 5 minutes. Manually filling out spreadsheets or PDF forms typically takes 30-60 minutes.
Do I need to include my spouse's information?
Yes, for SBA loans. You must include assets and liabilities held jointly with your spouse. This doesn't make your spouse a loan guarantor—the SBA just wants a complete picture of household finances.
What credit score do I need for SBA loans?
Most lenders require a minimum credit score of 650-680 for SBA loans. Scores of 720+ significantly improve your approval odds and may qualify you for better terms.
Can I have a negative net worth and still get approved?
It's possible but more difficult. Lenders prefer positive net worth as it shows financial stability. However, strong business cash flow and other factors can sometimes offset a negative personal net worth.
How often should I update my Personal Financial Statement?
Update your PFS at least annually, or whenever you apply for new financing. For active loan applications, ensure your statement is current within 90 days (30 days for 8(a) certification).
Will banks verify the information on my PFS?
Yes, lenders may request documentation to verify your assets and liabilities. They may also pull your credit report to verify debts. Always be truthful—misrepresentation can result in loan denial or fraud charges.
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