What is included in a Personal Financial Statement?

A Personal Financial Statement includes: liquid assets (cash, savings, investments), real estate holdings, retirement accounts, business ownership interests, personal property, mortgages, loans, credit card balances, and other liabilities. The net worth is calculated as total assets minus total liabilities.

What is a Personal Financial Statement?

Q: Who requires a Personal Financial Statement?

Personal Financial Statements are required by banks for business loans, the SBA for 7(a) and 504 loans, mortgage lenders for jumbo loans, commercial real estate lenders, and private equity firms. Business owners with 20% or more ownership typically must provide one.

A Personal Financial Statement (PFS) is a financial document that lists all of an individual's assets, liabilities, and calculates their net worth at a specific point in time. Banks, SBA lenders, and mortgage companies require this document to evaluate creditworthiness and loan eligibility. The PFS shows lenders exactly what you own and what you owe.

Key Facts

20%+

Ownership threshold requiring PFS for SBA loans

90 days

Maximum age of PFS for most lenders

Form 413

Official SBA Personal Financial Statement form

How Net Worth is Calculated

Total Assets - Total Liabilities = Net Worth

A positive net worth means your assets exceed your debts. Lenders typically want to see positive net worth for loan approval.

What's Included in a Personal Financial Statement

Assets (What You Own)

Cash and savings accounts
Checking accounts
Stocks, bonds, and mutual funds
Retirement accounts (401k, IRA)
Real estate (market value)
Business ownership interests
Vehicles and personal property
Life insurance cash value

Liabilities (What You Owe)

Mortgage balances
Auto loans
Student loans
Credit card balances
Personal loans
Business loans (if personally guaranteed)
Lines of credit
Other debts

Who Requires a Personal Financial Statement?

Banks & Credit Unions

Required for business loans, commercial mortgages, and lines of credit over $100,000.

SBA Lenders

Required for all SBA 7(a), 504, and disaster loans. Business owners with 20%+ ownership must submit SBA Form 413.

Mortgage Lenders

Required for jumbo loans, investment property mortgages, and self-employed borrowers.

Private Investors & Partners

Often required when seeking private equity investment or business partnerships.

Personal Financial Statement vs. Net Worth Statement

These terms are often used interchangeably, but there's a subtle difference:

Personal Financial Statement: The formal document required by banks and lenders. Follows a specific format with detailed asset/liability categories.
Net Worth Statement: A general calculation of assets minus liabilities. Can be informal.

For loan applications, lenders always require the formal Personal Financial Statement format, not just a net worth calculation.

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