SBA Form 413: How To Fill Out the SBA’s Personal Financial Statement

The SBA Form 413 is an important form that helps you understand your personal financial statement. The form can help provide insight on how to make smart decisions about money and finances, as well as increase a person’s understanding of the risk factors in their investments.

The “SBA Form 413: Personal Financial Statement” is a form that is used to report personal financial information. The form can be filled out by an individual or a business. Read more in detail here: sba form 413 personal financial statement.

SBA Form 413 is available for download.

SBA Form 413 is a personal financial statement that may be used to apply for SBA 7(a), SBA 504, and SBA Disaster loans. The personal financial information you provide will be used into your lender’s assessment of your company’s creditworthiness and repayment capabilities. Have your financial documentation prepared and ready to complete SBA Form 413 quickly and simply.

SBA Form 413 Instructions

A personal financial statement must be included in the loan application package for an SBA 7(a) loan, SBA 504 loan, or an SBA Disaster Loan. Each of the following individuals is responsible for completing and submitting their own personal financial statement:

• The owner of the company
• Each generic associate
• Each owner or limited partner with a 20% or greater ownership stake in the company
• Any person or organisation that provides a loan guarantee

If the sort of SBA loan you’re applying for requires you to submit SBA Form 413 and you file a joint tax return, you’ll need to include your spouse’s information. This does not imply that your spouse will be a guarantor on the loan, but it does alert the SBA and your lender to the fact that you have shared assets and responsibilities. Unless a formal instrument, such as a prenuptial agreement, clearly splits some assets, you must list your combined assets and obligations.

Gather Financial Documents Before Filling Out Form

It would be simpler to complete the form if you collect your financial papers ahead of time. Gather papers from the previous month that shows your assets and obligations. If you fill out the form on November 8, 2021, for example, you should collect papers from October 31, 2021.

You’ll need the following financial information:

• Statements from your checking and Accounts of savings
• Statements for individual retirement accounts (IRAs), 401(k)s, and other retirement accounts
• Current cash surrender value of life insurance documentation
• Current value of stocks, bonds, and other investment papers
• Paystub for the current year’s paycheck
• Disability income, pensions, Investing in real estate income, and other forms of income statements
• Statements for mortgages, auto loans, credit cards, and other sorts of loans that provide your account number, payment amount, and current balance.

You’ll want to keep this material in a safe place after you’ve gathered it since you’ll most likely need to refer to it during the SBA loan process. After you’ve completed this basic work, you may go on to filling out the remainder of the SBA personal financial statement form. Filling out the remainder of the form is quite straightforward if you have all of your documents collected and arranged. SBA Form 413 might take as little as 15 minutes to complete, depending on how many assets and liabilities you have.

Your name, address, phone numbers, and company name are required at the beginning of the form. The assets and liabilities section is followed by a summary section. It’s better to finish the assets and liabilities sections last, as weird as it may sound. The information in the other parts of the form is summarized in these sections. Complete parts one through eight first, then total your assets and liabilities using the information from those sections.

Section 1: List Sources of Revenue & Contingent Liabilities are a kind of liability that may arise at any time.

SBA Form 413, Section 1

You’ll mention your revenue sources and any obligations in this area. Revenue that you anticipate to get on a regular and recurrent basis is one of your potential income sources. Debts that become your obligation if and when something else occurs are known as Contingent Liabilities are a kind of liability that may arise at any time.. If you cosign a loan to purchase a car for someone else, for example, you become liable if the other person defaults. You’re summarizing the Contingent Liabilities are a kind of liability that may arise at any time. you’ll include in the Other obligations section in this section (Section 7).

Sources of Revenue

The following are the instructions for submitting this information, as well as explanations of words used on this form:

• Include all wage income for you and your spouse in this category. Include just the amount on your W-2 or 1099 tax forms. If your business is a partnership or an LLC, don’t enter revenue from distributions, withdrawals, or guaranteed payments in this area.
• Interest received on Accounts of savings, dividends and interest earned on Stocks and bonds are two types of investments., and recurrent capital gains or losses on the sale of assets are all included in net investment income.
• After costs, Investing in real estate income is your yearly net operating income (NOI) from rental properties.
• Other sources of income include child support, pensions, distributions, dividends, and guaranteed payments from the firm that you get on a regular or recurrent basis. In the box given under Section 1, describe this revenue in detail.

Contingent Liabilities are a kind of liability that may arise at any time.

The following are the instructions for submitting this information, as well as explanations of words used on this form:

• List the total possible outstanding debt on any loans you’ve co-signed or guaranteed as an endorser or comaker.
• Legal claims and judgements: Make a list of any prospective debts related to legal claims and judgments.
• Provision for federal income taxes: Include any funds put aside to cover anticipated federal income taxes.
• Other special debt: This is a catch-all category for any conceivable debts that haven’t previously been stated.

Include Bank and other remittance notes in Section 2

SBA Form 413, Section 2

All of your debts, including credit cards, personal loans, and installment loans, are included in this area. To ensure you don’t miss anything, we suggest reading your credit report. It’s also a good idea for established firms to double-check their credit reports.

Attach another piece of paper with the essential information if you don’t have enough room to list all of your debts. You are free to use as many additional pages as you like. If you do, make sure they all have the “as of” date on your SBA personal financial statement, mention Section 2, the company applicant’s name, and are signed by you and your spouse.

The following are the instructions for supplying this information and giving definitions for words used in this section:

• Noteholders’ names and addresses: Fill in the names and addresses of the banks that hold your debt. If you have numerous loans or credit cards from the same bank, make a note of the account numbers’ last four digits so they can be linked to a credit report.
• List the entire amount borrowed when the account was originally formed as the original balance. Put a zero for credit cards.
• Current state of affairs: Make a list of how much you owe right now. If you pay your credit card debt in whole each month, put Current balance: List the amount that you currently owe. Put $0 for credit cards if you pay your balance in full each month. for credit cards.
• Payment amount: Make a note of the minimum payment due with each statement. You may write “varies” for credit cards.
• Payment Frequency: Describes how often payments are made. This is usually done on a monthly basis.
• How secure or endorsed is the collateral, and what kind of collateral is it? Describe the item or property that was used as collateral, such as the type and model of the car that was utilized to secure the loan. In the text box, type “unsecured” if collateral isn’t needed. The vast majority of credit cards are unsecured.

Section 3: Make a note of your Stocks and bonds are two types of investments..

SBA Form 413, Section 3

You’ll list the marketable securities you and your spouse possess in this area. This does not include retirement funds, which will be stated separately on the form. You may add extra pages with more entries if necessary.

The following are the instructions for supplying this information and giving definitions for words used in this section:

• Number of shares: Make a list of all the shares you possess.
• Name of the stock or bond: Type the name of the stock or bond here.
• Cost: Make a list of the purchase’s original cost.
• Exchange/quotation of market value: Enter the security’s value as of the “as of” date you choose.
• Report the date of the value you reported (the same as the “as of” date) and the date of the quotation/exchange.
• Total cost: Divide the market value of each security by the number of shares you hold, and record the result.

Include Investing in real estate Owned in Section 4

Form 413, Section 4

This is where you’ll provide a full description of all the real properties you own under your own name. Make a list of any Investing in real estate you’ve included on your personal tax return. If you own Property A, it is your principal dwelling. If you own more than three properties, provide extra sheets or a “Investing in real estate schedule” that includes the same information as the SBA personal financial statement form.

The following are the instructions for submitting this information, as well as explanations of terminology used in this area of the form:

• List the kind of properties you have, such as “main dwelling,” “undeveloped land,” or “investment property.”
• List the property’s physical address in this section.
• Use the date on your mortgage bill of sale as your purchase date.
• List the original purchasing price.
• Present market value: If you were to sell the property today, use the current appraised value; you may get an estimate by contacting a broker or using an internet tool like Zillow.
• Name and address of mortgage holder: Fill in the name and address of the lender who owns the property’s mortgage.
• Payment amount each month/year: Input your monthly or annual mortgage payment.
• Mortgage status: Indicate your mortgage’s current repayment status, such as current, foreclosure, or paid in full.

Section 5: Make a list of any Other personal belongings and assets you own.

Form 413, Section 5

You’ll report important personal property in this area. This includes jewelry, IRAs, and other retirement funds, as well as Automobiles and recreational vehicles. Include the make, model, and year of the vehicle, as well as a fast assessment of its current worth using a source like Kelley Blue Book.

You won’t be required to produce proof of your company’s worth immediately away. However, if your lender requests it, you should be prepared to offer it. You may either hire a consultant to offer an official business valuation or estimate the worth of your company and record your calculations.

Section 6: Describe Any Taxes That Have Not Been Paid

SBA Form 413, Section 6

You may fill out this part with a full explanation of any federal, state, or municipal taxes you owe. You should also specify whether the taxes owed are current or past due. In the Other obligations area of the form, include any taxes you owe to a foreign government.

Before the SBA can authorize a loan, you must be current on all federal, state, and local taxes. Only if you have outstanding federal income taxes with an IRS-approved payment plan are you exempt. The SBA also prohibits you from using loan funds to pay back taxes such as income, payroll, Investing in real estate property, or sales that are past due.

Include Any Other obligations in Section 7

SBA Form 413, Section 7

This area of SBA Form 413 is a catch-all section where you may identify any obligations that were not previously declared and detailed in depth on the form. The following are some instances of the several sorts of liabilities that may be found here:

• Cosigned or guaranteed obligations: If you’re a co-signer or guarantor on another person’s debt, you should identify those possible responsibilities in this area. This will be reported as a contingent liability in the end.
• Obligations to foreign countries: Even though they are a tax obligation, any debts owing to foreign governments, mainly taxes, are reported here.
• Private debts: If you established a big financial arrangement to pay someone, with or without proof, you should include it here.
• Outstanding lawsuits: If you’re being sued right now but haven’t received a judgment yet, you should include your prospective obligation in this area.

You don’t want to overlook any debts since your loan provider will almost certainly locate them on your credit record and believe you’re attempting to conceal anything. If you’re not sure where a liability should go on the form, make sure it’s in this area.

Section 8: Holding Life Insurance

SBA Form 413, Section 8

In this area of the form, you must identify any life insurance policies you or your spouse presently have. List all of your life insurance plans, including term, whole life, and variable life. Provide the face value (death benefit) of your policy, as well as the cash surrender value of whole life insurance plans, to your beneficiaries if you die. Also, make a list of all policy beneficiaries’ complete names, as well as the name of the insurance firm that handles your policies. It’s possible that the insurance company isn’t the same as the agent or broker that helped you set up the policy.

Make a list of your assets.

SBA Form 413 Assets Summary

The Assets section on the first page of the form summarizes the information you supplied previously when filling out the form, as well as your cash on hand and savings account balances.

Make care you round up to the closest dollar when filling out this area. The following assets must be listed:

• Money in hand and in the bank
• Accounts of savings
• IRAs and other types of retirement accounts
• Receivables (accounts and notes)
• Life insurance with just a cash surrender value
• Stocks and bonds are two types of investments.
• Investing in real estate
• Automobiles
• Other personal belongings

Add up all of your assets from the previous line items to get a total. Make sure your math is correct by double-checking it!

Compile a list of your liabilities.

Form 413’s Liabilities section

The Liabilities section contains your Accounts receivable as well as a summary of the information you gave in the previous phases. Report the entire amount of items and services bought on credit or on a recurring payment basis, excluding those purchased using credit cards or personal lines of credit, to Accounts receivable.

Make care you round up to the closest dollar when filling out this area. The following liabilities must be listed:

• Accounts receivable
• Bank and other remittance notes
• Monthly payments and total outstanding on an installment account (car)
• Monthly payments and total outstanding on an installment account (other)
• Loans secured by life insurance (total amount)
• Mortgages on Investing in real estate
• Taxes not paid
• Other obligations

Then, to finish this portion, follow the directions for the remaining three items:

• Total liabilities: Add up all of your obligations, including those shown in the previous line items. Remember to double-check your math.
• Although net worth is not a liability, it is included in this section. You may calculate your net worth by subtracting your total assets from your total obligations on the previous line in the Assets section of the form.
• To calculate your total liabilities and net worth, multiply your total obligations by your net worth. Make sure this matches the total assets number you entered in the Assets section of the form.

Please remember to sign the form.

Form 413’s signature section

You’re finished compiling SBA Form 413 after you’ve completed the summary of assets and liabilities and each individual mentioned on the SBA personal financial statement has completed and signed the certification on page 3. This form, together with your SBA loan application and other supporting papers, will be sent to your lender.

If you’re ready to move forward, SmartBiz provides SBA 7(a) loans under $350,000 for working capital or up to $5 million for commercial Investing in real estate. With its expedited loan process, SmartBiz can often get approved loans funded in as little as 30 days.

Go to SmartBiz.com to learn more.

Conclusion

When you’ve completed filling out SBA Form 413, sign and date it, then put it in a binder with your other supporting paperwork. Don’t include anything that you can’t back up with paperwork, since your lender will almost certainly ask for some. If your lender asks for copies, be ready to offer them.

SBA Form 413 PDF is available for download.

More SBA loan application forms are available here:

The “sba personal financial statement form” is a document that you can use to report your personal finances. The form requires the following information: income, expenses, assets and liabilities.

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