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SBA Form 413 is the Small Business Administration's personal financial statement. It records an owner's assets, liabilities, income and contingent liabilities on one form, and the SBA and its lenders use it as one of several sources for judging repayment ability and creditworthiness on 7(a) and 504 loans. It is also used for disaster loans, surety bond guarantees and the WOSB and 8(a) programs. For a 7(a) or 504 loan, you return the completed form to the lender or Certified Development Company handling your application, not to the SBA, and the figures must be current to within 120 days of submission.
Who has to complete SBA Form 413
The form itself cites SBA regulations requiring any loan guarantor and the individual owners of the small business applicant to submit a personal financial statement. In practice, lenders generally ask for one from every owner of 20% or more and from each guarantor. Owners at that level are usually required to personally guarantee an SBA loan, so the two groups tend to overlap.
The certification must be signed by each person submitting the form, and by the spouse of any 20% or more owner when spousal assets are included. For the WOSB and 8(a) programs, a married applicant's spouse completes a separate form unless the spouses are legally separated.
Timing matters as well. The "current as of" date must fall within 120 days of submission for 7(a), 504, surety bond, 8(a) and WOSB purposes, and within 90 days for disaster loans. A statement prepared early in a slow application can go stale, so check the date before your lender submits the file.
What each section of SBA Form 413 asks for
The current edition, available from the SBA's Form 413 page, carries OMB approval through August 31, 2027. Its first page summarizes assets and liabilities in whole dollars, since the form says to omit cents. Net worth is the difference between the two, and total liabilities plus net worth must equal total assets. Most summary lines point to a numbered section where you give the detail.
| Section | What it covers | What to have ready |
|---|---|---|
|
Summary |
Assets from cash to vehicles; liabilities from payables to unpaid taxes |
Recent bank, brokerage and retirement statements |
|
1. Source of income and contingent liabilities |
Salary, investment, real estate and other income; obligations as endorser or co-maker, legal claims and judgments, other special debt |
Pay records, latest tax return, any loan you have guaranteed |
|
2. Notes payable to banks and others |
Each noteholder, original and current balance, payment amount and frequency, collateral |
Loan statements |
|
3. Stocks and bonds |
Number of shares, name of security, cost and market value |
Brokerage statements |
|
4. Real estate owned |
Each property separately: purchase date, cost, market value, mortgage holder, balance and payment |
Mortgage statements and a recent valuation |
|
5. Other personal property and other assets |
Vehicles by year, make and model, retirement accounts, receivables and other assets, plus any liens on them |
Titles and account statements |
|
6. Unpaid taxes |
Type, to whom payable, when due, amount and any property a lien attaches to |
Tax notices or payment plan letters |
|
7. Other liabilities |
Debts not captured elsewhere |
Supporting statements |
|
8. Life insurance held |
Face amount, cash surrender value, insurer and beneficiaries |
Policy statements |
Two lines are easy to get wrong. Contingent liabilities include any loan you have co-signed or guaranteed, even if the other borrower is current on it. And the form says alimony or child support should not be listed as other income unless you want it counted toward total income.
How lenders read your personal financial statement
Lenders use the form to see what stands behind the business if it hits a rough patch. Liquid assets show whether an owner could cover a shortfall, and personal debt payments feed into the lender's view of total obligations. Real estate equity can matter when business assets do not fully secure the loan, because SBA lenders commonly look to other available collateral in that situation.
Consistency counts too. The figures should line up with the bank statements, tax returns and credit report in the rest of your file, so a lender reviewing the full set of business loan documents does not have to reconcile conflicting numbers. Mixed personal and business finances make that harder, which is one more reason to keep personal and business credit separate.
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Common mistakes that delay an SBA file
- A "current as of" date that has passed the 120-day window by the time the lender submits.
- Totals that do not balance, or a net worth figure that does not equal assets minus liabilities.
- Market values with no support, especially for real estate and vehicles.
- Leaving out contingent liabilities, or loans from family members, which belong under notes payable to banks and others.
- A missing spouse signature when spousal assets are included.
- Unsigned attachments. Each attachment must be identified as part of the statement and signed.
Every round of corrections can add days to a process that already runs longer than most business financing. That timeline is a real constraint for a business with a near-term need. For owners in that position, BusinessCapital.com, a business financing platform, can match the business with SBA loans as well as faster options such as short-term loans and lines of credit.
You are signing a certification
By signing, each person certifies under penalty of criminal prosecution that the information is true and complete. The form's notice to loan applicants cites penalties under 18 U.S.C. 1001 of up to five years in prison, a fine of up to $250,000, or both, and under 18 U.S.C. 1014 of up to 30 years, a fine of up to $1,000,000, or both, when the statement goes to a federally insured institution. Use statement balances wherever they exist, and say so on a signed attachment where a value is an estimate.
Frequently asked questions
Who needs to complete SBA Form 413?
For 7(a) and 504 loans, lenders generally require a separate form from each owner of 20% or more and from anyone else guaranteeing the loan. Disaster loans and the 8(a) and WOSB programs set their own submission rules.
How recent does the information need to be?
For 7(a) and 504 loans, the "current as of" date must be within 120 days of submission. For SBA disaster loans, the window is 90 days.
Does completing SBA Form 413 affect my credit?
The form itself does not. Signing it authorizes the SBA, lender or surety company to make inquiries to verify your statements and creditworthiness, and lenders typically check credit as part of the application.
Where do I send the completed form?
To the lender processing a 7(a) application, or to the Certified Development Company handling a 504 loan. Disaster loan applicants send it to the SBA's Disaster Processing and Disbursement Center.
Do lenders outside the SBA ask for a personal financial statement?
Many banks use their own version for larger or longer-term loans. Online lenders and short-term products often skip it and rely more on bank statements and revenue.
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