U.S. Small Business Administration — SBA Form 413
Short answer: SBA Form 413 is the Personal Financial Statement the SBA requires from everyone who owns 20 percent or more of a business applying for an SBA loan, plus every general partner, managing member and guarantor. It lists what you own, what you owe and what you earn. The current version is effective 13 February 2025, OMB control number 3245-0188. Download it below or complete it online on this page.
Form 413 is the SBA’s snapshot of your personal finances. Everything you own, everything you owe, and where your income comes from. The SBA and the lender use it for two separate judgments: whether you can repay, and what of yours could support the loan if the business cannot.
The same form covers 7(a) loans, 504 loans, disaster loans, surety bond guarantees, the 8(a) Business Development program and Women-Owned Small Business certification. It is one page of assets and liabilities followed by eight supporting schedules.
Take the form from the SBA rather than from a search result, because older versions circulate for years and a lender will bounce one. The current file is SBA Form 413, effective 13 February 2025, on sba.gov. A Spanish translation is available on the same page, though the SBA requires applications themselves in English.
Each of these people completes their own Form 413, not a joint one:
Ownership is counted on a combined basis for spouses and minor children, so two spouses at 15 percent each are treated as a 30 percent owner and both file. If you own 20 percent or more of another business as well, expect questions about that one too.
An SBA underwriter does not read Form 413 top to bottom. They go looking for five things, usually in this order.
Before anything else they compare your cash and marketable securities against the injection the deal requires. On a 7(a) business acquisition that is commonly 10 percent; on a 504 it is usually 10 to 20 percent depending on the project. If the money is not visibly sitting in an account, the file stops.
It also needs to be seasoned. Money that appeared last month invites the question of where it came from, and a borrowed injection is not an injection. Two or three months of statements showing it sitting there does more for you than any explanation.
Making the injection is not enough. A borrower who empties every account to get to the closing table is a worse credit than one who puts in the same money and still has reserves. Post-closing liquidity is a real underwriting factor and it is read straight off this form.
Your personal debt service from Sections 2 and 4 gets added to the business debt service, and the whole thing has to be covered. A perfectly good business can be declined because of the owner’s personal obligations. That is why the mortgage and instalment balances matter as much as the assets.
The most-skipped box on the form and the one that causes the most damage. Co-signed loans, personal guarantees on another entity’s lease or debt, legal judgments and pending claims all belong here. Underwriters find them anyway, in credit reports and title searches. An undisclosed one does not just get corrected: it makes the lender doubt every other number on the page.
If most of your net worth is the estimated value of the business being financed, it is neither collateral nor liquidity, and an underwriter will discount it to nearly nothing. Net worth made of cash, marketable securities and real estate equity is worth far more to your file than the same number made of goodwill in your own company.
One consequence people do not expect. The SBA requires a lender to take available collateral before it will treat a loan as fully secured, and that includes personal real estate with meaningful equity in it. If you list a property on Section 4 with substantial equity, be ready for a lien on it. That is not the lender being difficult, it is programme rules.
Use realistic current values, not what you paid and not what you hope. Cash means the balance a statement would show today. Retirement accounts belong here and are routinely left off. Net worth must equal total assets minus total liabilities exactly; if it does not, the form comes back.
Salary, net investment income, real estate income and other income on the left. Contingent liabilities on the right. Take the right-hand side seriously; see above.
Every instalment obligation: vehicle loans, personal loans, lines of credit. The payment amount and frequency matter more than the balance, because that is what feeds global cash flow.
Marketable securities only. This is a liquidity schedule, so it feeds the injection question directly. Privately held shares in your own business do not belong here.
List every property with its current value and its mortgage balance. Listing property without the debt against it is one of the most common reasons a package is returned, and it is the schedule that decides whether a lien is coming.
Other personal property, unpaid taxes, other liabilities, and life insurance held. Unpaid taxes in particular need to be disclosed rather than discovered: an undisclosed tax lien will surface in the search and will cost you more time than the tax itself.
Sign and date it. An undated form is not a current form. In community property states a spouse’s signature may be required where spousal assets are included.
Any single one of these sends the file back for correction, and a correction cycle on an SBA package routinely costs two to three weeks.
It is the Personal Financial Statement required for SBA 7(a) loans, 504 loans, disaster loans, surety bond guarantees, and the 8(a) and Women-Owned Small Business programs. It lists your personal assets, liabilities and income so the lender and the SBA can judge repayment ability and available collateral.
Each sole proprietor, general partner, managing member of an LLC, owner of 20 percent or more of the applicant business, and any guarantor completes their own form. Spousal and minor children's ownership is counted together when working out whether you cross 20 percent.
It depends on the state and on whether the assets are jointly held. Jointly owned assets are disclosed. In community property states a spouse's signature may be required where spousal assets are included. If your spouse is a guarantor, they file their own form regardless. Ask your lender directly rather than guessing, because practice varies.
The form asks for your financial position as of the date you sign it, and lenders apply their own recency windows on top of that. The practical answer is to complete and date it in the same week you submit the package, and to refresh it if the file sits for a couple of months before it reaches underwriting.
Yes, in effect. The figures are cross-checked against your credit report, tax transcripts requested from the IRS, bank statements and title searches. The form also carries a certification, and knowingly false statements on an SBA form carry criminal penalties. Disclose problems rather than hoping they are missed. A disclosed weakness is an underwriting issue; a discovered omission is a credibility issue, and the second one is much harder to recover from.
It is not automatically fatal. SBA lending is cash-flow lending first, and a business with solid debt service coverage can carry an owner whose personal balance sheet is thin. What matters more is whether you can make the required injection, whether your personal obligations leave room for the new debt, and whether there is a clear story behind the negative number.
It can raise a question. The SBA will not guarantee a loan where the applicant has the personal resources to fund the project without assistance. Very large liquidity relative to the loan size invites that discussion. It is usually answerable, but it is better answered deliberately than in a scramble.
Form 413D was the disaster-loan version. The current SBA Form 413 on sba.gov lists disaster loans among the programs it covers, so use whichever form your lender or the SBA program page specifies, and check the effective date on the file you are handed.
The SBA itself takes the form through your lender, not directly. On this page you can complete the whole of Form 413 online and it comes to NTIB for review before anything reaches a lender, or you can download the fillable PDF and do it yourself.
Want a second pair of eyes before this goes to a lender? Complete the form below and it comes straight to us, or call 914.419.3059 or email mike@ntibfin.com. Reviewing your draft is free; if we place your financing, we charge a small fee at closing.
This page is general guidance on completing a government form, not legal, tax or accounting advice, and NTIB Finance & Consulting is neither a law firm nor an accounting firm. SBA program rules change and individual lenders apply their own overlays on top of them. Confirm current requirements with your lender or at sba.gov before you submit.
| Name & Address of Noteholder | Original Balance | Current Balance | Payment Amount | Frequency | How Secured / Collateral |
|---|---|---|---|---|---|
| Name of Securities | Number of Shares | Cost | Market Value | Total Value | Quotation / Exchange | Date of Quotation |
|---|---|---|---|---|---|---|
Spouse signature (if required — when spousal assets are included):