Personal financial statement: SBA Form 413 guide
Who completes SBA Form 413, what goes on each line and schedule, how to value assets, and the 90-day rule for 7(a) and 504 loans under SOP 50 10 8.1.
Published · 8 min read · By the AceTheSBA team
Key points
- SBA Form 413 is the personal financial statement SBA lenders use. It lists your personal assets, liabilities, income and contingent liabilities, and shows your net worth.
- For 7(a) and 504 loans it is required from each proprietor, general partner, LLC managing member, every owner of 20% or more and every guarantor (SOP 50 10 8.1 excludes supplemental guarantors).
- It must be signed and dated within 90 days of submission to SBA under SOP 50 10 8.1, even though the current form (05-24) still prints 120 days for 7(a) and 504.
- Every figure is checked against something: bank statements, credit reports, mortgage statements, tax returns. Accuracy matters more than a high net worth.
SBA Form 413, the Personal Financial Statement, shows a lender what you own, what you owe and what you earn. Because every owner of 20% or more personally guarantees an SBA loan, your personal finances are part of the loan decision.
Who completes it
For 7(a) and 504 loans, the form is completed by:
- Each proprietor
- Each general partner
- Each managing member of an LLC
- Each owner of 20% or more of the business, including the assets of the owner’s spouse and minor children
- Anyone providing a guaranty on the loan (SOP 50 10 8.1 excludes supplemental guarantors)
The ownership of spouses and minor children is combined. If a husband owns 15% and his wife owns 10%, both are treated as part of a 25% interest and both guarantee the loan.
The 90-day rule
The form must be signed and dated within 90 days of submission to SBA under SOP 50 10 8.1. The current form (edition 05-24) still prints “within 120 days” for 7(a) and 504. The SOP took effect on October 1, 2026 and is the later rule, so use 90 days. If your application is delayed, expect to sign a fresh statement.
For 504 loans, each person also provides their last year’s federal income tax return.
Page 1: the summary
Header. Your name, home address, the business name and the business type. Enter the “current as of” date: the date your figures are true.
Assets (omit cents):
- Cash on hand and in banks; savings accounts: match your latest bank statements. The lender may compare them.
- IRA or other retirement accounts: the current balance. Describe in Section 5.
- Accounts and notes receivable: money owed to you personally. Describe in Section 5.
- Life insurance, cash surrender value only: not the death benefit. Describe in Section 8.
- Stocks and bonds: market value. List in Section 3.
- Real estate: present market value. List each property in Section 4.
- Automobiles: with year, make and model in Section 5.
- Other personal property and other assets: describe in Section 5, including any lien on them.
Liabilities:
- Accounts payable
- Notes payable to banks and others: detail in Section 2.
- Installment accounts (auto and other): with the monthly payment.
- Loans against life insurance
- Mortgages on real estate: detail in Section 4.
- Unpaid taxes: detail in Section 6.
- Other liabilities: detail in Section 7.
Net worth is total assets minus total liabilities. Total liabilities plus net worth must equal total assets.
Section 1, income and contingent liabilities. Your salary, net investment income, real estate income and other income. Contingent liabilities are debts you could become responsible for: loans you co-signed or endorsed, legal claims and judgments, provision for federal income tax and other special debt. Alimony or child support received need not be listed as income unless you want it counted.
Pages 2 and 3: the schedules
- Section 2, notes payable: each lender’s name and address, original and current balance, payment amount and frequency, and collateral.
- Section 3, stocks and bonds: shares, name, cost, market value and the quotation date.
- Section 4, real estate: each property separately: type (primary residence, rental, land), address, purchase date, original cost, present value, mortgage holder, account number, balance, payment and status.
- Section 5, other personal property and other assets: description, and any lien holder, amount, terms and delinquency.
- Section 6, unpaid taxes: type, to whom payable, when due, amount and any property a tax lien attaches to.
- Section 7, other liabilities
- Section 8, life insurance: face amount, cash surrender value, insurer and beneficiaries.
Signing
You authorize SBA, the lender or the CDC to verify the information, and you certify under penalty of criminal prosecution that it is true and complete. Knowingly making a false statement is a federal crime. The spouse of a 20% owner signs when spousal assets are included.
How lenders use it
- Liquidity: before certifying that credit is not available elsewhere, the lender must consider the liquidity of the business and of every owner of 20% or more.
- Global cash flow: your monthly payments on the form (mortgages, auto and installment loans) feed the global debt service test, which must reach at least 1.0.
- Equity injection: the cash you say you are injecting should be visible on the form and in your bank statements.
- Consistency: the lender compares the form to your credit report, tax returns and bank statements. Unexplained differences cause delays.
Common mistakes
- Listing the death benefit of life insurance instead of the cash surrender value.
- Leaving out a co-signed loan, a judgment or a tax payment plan.
- Using a statement more than 90 days old.
- Valuing a home at an optimistic list price instead of a supportable market value.
- Mixing business accounts into personal cash.
- Forgetting the spouse’s assets and signature when they are included.
This article reflects SBA Form 413 (05-24) and SBA SOP 50 10 8.1, effective October 1, 2026.