{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7","api_url":"https://dealroom.so/api/public/questions/what-is-the-primary-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7","question":"What is the primary purpose of SBA Form 413, and which individuals must complete it for a 7(a) loan?","topic":"SBA Forms","audience":"new","bot_mode":"buyer","short_answer":"SBA Form 413, the 'Personal Financial Statement,' details the personal assets and liabilities of loan applicants and guarantors. It must be completed by all owners of 20% or more of the business and any other guarantors.","rule":"The SBA requires this form to assess the financial strength and liquidity of the individuals responsible for the loan, including their ability to make payments on the personal guarantee if the business defaults. It provides a comprehensive picture of personal net worth.","example":"A business owner and their spouse, who are both guarantors, complete separate SBA Form 413s, listing their joint and individual assets (e.g., real estate, savings, investments) and liabilities (e.g., mortgage, car loans, credit card debt).","what_lenders_check":"Lenders verify the accuracy of the information on Form 413, often requesting supporting documentation like bank statements and tax returns. They analyze the personal financial statement to determine the guarantor's ability to support the loan.","required_facts":["Personal Financial Statement","Assets and liabilities","20% ownership threshold","All guarantors","Assesses net worth","Repayment capacity"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[],"related_terms":[{"term":"SBA Form 148","url":"https://dealroom.so/glossary/sba-form-148"},{"term":"SBA Form 912","url":"https://dealroom.so/glossary/sba-form-912"},{"term":"Complete Change of Ownership","url":"https://dealroom.so/glossary/complete-change-of-ownership"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"SBA Form 1919 Disclosure","url":"https://dealroom.so/glossary/sba-form-1919-disclosure"},{"term":"Ineligible Purpose","url":"https://dealroom.so/glossary/ineligible-purpose"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}