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Personal Financial Statement


How to Fill Out SBA Form 413

The application process for a SBA 504 loan can seem a bit daunting. There are documents to gather, phone calls to make, and, of course, forms to fill out. One of the most important forms in ensuring your loan is approved is the Personal Financial Statement, also known as form 413. 

According to the SBA, this form is used to determine your creditworthiness and repayment ability. Essentially, Personal Financial Statement assesses your risk as a borrower. It goes without saying that filling out this form thoroughly and accurately is important. Follow our guideline to help make the process as seamless as possible. 

Documents for the Personal Financial Statement

Before you sit down to fill out form 413, make sure you have resources available with the information you need to answer the personal financial statement’s questions regarding assets and liabilities. Gather the following documents and information beforehand:

  • Bank statements
  • Retirement account statements
  • Loan statements (mortgage, student loan, credit card debt, etc.)
  • Pay stubs and W-2s
  • Life insurance policies (you’ll need the cash out value)
  • Stocks and bonds statements
  • Car values (you can use Kelley Blue Book to help you get an estimate)
  • Installment accounts (monthly payments for cars, for example)
  • Accounts and notes payable (this is money you have loaned to a third party)
  • Unpaid taxes
  • The approximate value of any other major assets (see below)
  • Any other liability amounts (such as loans against life insurance)

Most financial statements, like loan and retirement statements, will need to be dated within 90 days. If you are married, you will also need to include the assets and liabilities of your spouse; be sure to gather those documents as well. 

What is On the Personal Financial Statement?

SBA Form 413 is a comprehensive document that serves as a snapshot of an individual’s personal financial situation. It is a four page form that involves listing personal assets, liabilities, income, and expenses. Follow these steps to fill it out as correctly as possible:

Select Your Loan Type:

Page 1 of the Personal Financial Statement is fairly straightforward: you check the type of loan for which you wish to apply. Form 413 can be used for:

  • The 7(a), 504, or Business Surety Bonds
  • A disaster business loan
  • Women-Owned Small Business Federal Contracting Program
  • The 8(a) Business Development Program

In the case of th 504, you would simply tick the first box and move onto the next page.

Personal Information, Assets, and Liabilities

Page 2 of the Form 413 starts with your personal information: name, address, business type (corporation, LLC, S-Corp, etc.) The second half of the form begins to have you list your assets and liabilities. Use the above listed documents to help you fill out any relevant portion. 

Noteholders, Real Estate, and Stocks and Bonds

Page 3 of the Personal Financial Statement has three sub-sections:

  1. Section 2 asks for further noteholder details. These are the banks and other lenders to which you owe money (your mortgage lender, for example). You will need the name, address, original loan amount, current balance, frequency of payment, and the way the loan is secured (collateral). 
  1. Section 3 asks for more information about stocks and bonds you may have. For each item, you’ll need:
  • number of shares
  • name of securities
  • cost
  • market value quote/exchange
  • date of quote/exchange
  • total value
  1. Section 4 asks you about properties you own. You’ll need address, payment, and purchase information for each real estate asset. You’ll also need the mortgage account numbers and current market value for your properties. 

You can detail any other personal property or assets in Section 5 on page 3.

Unpaid Taxes, Life Insurance, and Other Liabilities

The last page of the Personal Financial Statement also has three sub-sections:

  1. Section 6 asks you to list any unpaid taxes in detail. You will need to specify the type of tax that is unpaid, to whom it is owed, when it is due, the amount, and any property liens that exist.
  1. Section 7 gives you the opportunity to disclose any other liabilities not listed on page 1. Be as detailed as possible.
  1. Finally, Section 8 asks for details about your life insurance policy, if you have one. You will need to know the name of the insurance company and any beneficiaries. List the face amount and cash surrender value as well.

You will sign and date the form and write your social security number. Then you are done!

How Does the Personal Financial Statement Affect Your 504 Loan?

Form 413 is used to help your lender decide if you will be able to meet your repayment obligations. This can affect whether or not your loan is approved. If your debt to income ratio is too high, for example, or you cannot provide evidence of adequate cash flow to meet financial obligations, you may be turned down. 

That is why it is important to work closely with a Certified Development Company at each step of the 504 loan process. Your CDC can help you acquire the necessary information and documents and offer guidance in filling it out correctly so you reduce your risk of having a loan declined. 

If you need assistance in Colorado with your 504 loan, including filling out the personal financial statement, please contact the professionals at CEDCO. In more than thirty years, we have helped thousands of small businesses with all sorts of projects, from new builds to equipment upgrades. Call or go online today to schedule a free consultation to see how we can help you. 

snippet of the SBA personal financial statement form
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