SBA Form 413 is the Personal Financial Statement the Small Business Administration requires when you apply for a 7(a) or 504 loan. It captures your personal finances -- what you own, what you owe, and your resulting net worth -- separately from your business's books. Lenders use it to judge whether the people behind the business have the financial strength and the stake to stand behind the loan.
This guide walks through who has to file it and what every line asks for, and it gives you a worksheet you can fill in before you touch the official form. It is orientation, not lending or legal advice -- always confirm the current form and your lender's specific requirements before you submit.
What SBA Form 413 Is, and Is Not
Form 413 is a snapshot of your personal financial position on a single date. It is not your business financial statements, and it is not your tax return. Owners often confuse the three:
- Form 413 = your personal assets, liabilities, and net worth.
- Business financial statements = the company's P&L, balance sheet, and cash flow. Those are a separate part of the package; see financial statements for an SBA loan.
- Tax returns = what you filed with the IRS, personal and business, usually for the last three years.
The SBA wants all three, and they need to roughly agree with each other. A personal financial statement that contradicts your tax returns is a fast way to draw extra questions.
Who Has to Complete Form 413
Generally, a personal financial statement is required from each of the following:
- Every owner of 20% or more of the applicant business.
- Sole proprietors and general partners.
- Managing members of an LLC and, in many cases, key officers.
- Anyone the lender requires to personally guarantee the loan.
The 20% ownership threshold is the one owners miss most often. If three partners each own 30%, all three file. Married owners should also check whether their lender wants a combined or separate statement, since spousal assets and guarantees can come into play.
The Form 413 Net-Worth Worksheet
Work through the two tables below before you open the official form. Enter current, supportable values, total each side, and your net worth is simply the difference. The line items match the form's Assets and Liabilities columns, so anything you fill in here transfers straight across. A downloadable version that totals itself is linked at the end of this section.
Assets: what you own
List everything at its fair, current value -- what it is worth today, not what you paid.
| Form 413 line | What goes here | Your amount |
|---|---|---|
| Cash on hand and in banks | Current checking balances and cash | $ |
| Savings accounts | Current savings balances | $ |
| IRA or other retirement account | Vested balance (IRA, 401(k), and similar) | $ |
| Accounts and notes receivable | Money owed to you personally | $ |
| Life insurance, cash surrender value | The cash value only, not the death benefit | $ |
| Stocks and bonds | Current market value (list on the supporting schedule) | $ |
| Real estate | Current market value (list on the supporting schedule) | $ |
| Automobiles | Current value of vehicles you own | $ |
| Other personal property | Furnishings, equipment, valuables | $ |
| Other assets | A stake in another business, and anything not listed above | $ |
| Total assets | Add every row above | $ |
Use realistic values. Inflating a home or a private business interest to lift your net worth tends to backfire when the lender asks for support.
Liabilities: what you owe
List the current balance of everything you owe, including debts you have guaranteed for someone else.
| Form 413 line | What goes here | Your amount |
|---|---|---|
| Accounts payable | Credit card balances and other amounts due | $ |
| Notes payable to banks and others | Personal loans and notes (terms on the supporting schedule) | $ |
| Installment account (auto) | Auto loan balance, plus the monthly payment | $ |
| Installment account (other) | Other installment debt, plus the monthly payment | $ |
| Loan against life insurance | Any loan taken against a policy | $ |
| Mortgages on real estate | Balances owed, matched to the real estate in your assets | $ |
| Unpaid taxes | Any past-due tax balance | $ |
| Other liabilities | Includes contingent debts, such as a loan you have personally guaranteed | $ |
| Total liabilities | Add every row above | $ |
Contingent liabilities are the second most-missed item. If you have guaranteed another loan, disclose it -- lenders find these in the credit pull anyway, and an omission reads as a red flag rather than an oversight.
Net worth
| Line | Amount |
|---|---|
| Total assets | $ |
| Total liabilities | $ |
| Net worth (assets minus liabilities) | $ |
The figure matters less for hitting a magic number and more for being accurate, consistent, and supportable.
Download the worksheet: the SBA Form 413 net-worth worksheet (Excel) uses the same lines and totals the columns and your net worth automatically. Free, no email required. Fill it in, then copy the figures onto the official form.
Net Worth and Signatures
Net worth is total assets minus total liabilities, the figure you calculated above. Once it is right, sign and date the form, and make sure every required owner submits their own. An unsigned or undated form, or a missing owner, is one of the most common reasons a package gets sent back.
Where Form 413 Fits in the Loan Package
Form 413 is one document in a larger SBA application that also includes business financial statements, tax returns, a debt schedule, and projections. The personal statement is usually the easy part; the business financials are where applications stall, especially if the books are behind. If your bookkeeping is not current, that is the work to start now -- read financial statements for an SBA loan and accountant vs controller for SBA loan financials to figure out who should prepare them, and start here if the books are a mess.
If the loan is funding an equipment, vehicle, or system purchase, one more question belongs before the package: does the purchase pay for itself, and does the business survive the payment? Should you buy this equipment at all? runs that test from your own numbers.
Frequently Asked Questions
Who has to fill out SBA Form 413?
Generally every owner of 20% or more of the applicant business, plus sole proprietors, general partners, managing members, and anyone the lender requires to guarantee the loan. If three partners each own 30%, all three file.
What is SBA Form 413 used for?
It is the Personal Financial Statement in an SBA 7(a) or 504 loan application. It reports each owner's personal assets, liabilities, and net worth, separate from the business's financial statements, so the lender can judge the financial strength behind the loan.
Do my Form 413 numbers need to match my tax returns?
They should be consistent. The SBA reviews the personal financial statement, business financials, and tax returns together, and a personal statement that contradicts your returns tends to draw extra questions.
Next Step
Form 413 is straightforward; getting the whole SBA package lender-ready is the real project. The SBA-readiness diagnostic at GetAFractional helps you see what your application still needs -- and which finance help to line up -- in about three minutes.
This article is informational and does not constitute financial, legal, or tax advice. Confirm the current SBA Form 413 and requirements with your lender or a qualified professional before submitting.