{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-413-and-who-needs-to-fill-it-out","api_url":"https://dealroom.so/api/public/questions/what-is-the-primary-purpose-of-sba-form-413-and-who-needs-to-fill-it-out","question":"What is the primary purpose of SBA Form 413, and who needs to fill it out?","topic":"How to apply","audience":"new","bot_mode":"buyer","short_answer":"SBA Form 413, the Personal Financial Statement, is used to detail an applicant's personal assets, liabilities, and net worth. It must be completed by all owners of 20% or more of the business and any other guarantors.","rule":"SBA Form 413 provides a snapshot of the personal financial health of the business principals. Lenders use this information to assess the applicant's creditworthiness, evaluate the personal guaranty's strength, and confirm the source and sufficiency of the equity injection. All individuals who will personally guarantee the loan, typically 20% or greater owners, must complete this form.","example":"A husband and wife each own 50% of a business. Both would need to complete a separate SBA Form 413, listing their individual assets (cash, investments, real estate), liabilities (mortgages, credit card debt), and calculating their personal net worth.","what_lenders_check":"Lenders carefully review Form 413 for accuracy and consistency with other financial documents. Discrepancies, undisclosed liabilities, or insufficient assets could indicate a higher risk or impact the strength of the personal guaranty.","required_facts":["Personal Financial Statement","Assets and liabilities","Net worth","20%+ owners complete","Guarantors complete"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs"],"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"}],"related_questions":[{"question":"What basic financial documents will I need to prepare for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/what-basic-financial-documents-will-i-need-to-prepare-for-an-sba-7-a-loan-application"},{"question":"Will the Small Business Administration (SBA) help me find a lender for a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/will-the-small-business-administration-sba-help-me-find-a-lender-for-a-7-a-loan"},{"question":"What is the role of SBA Form 1919 in the 7(a) loan application process?","url":"https://dealroom.so/sba-loans/basics/what-is-the-role-of-sba-form-1919-in-the-7-a-loan-application-process"},{"question":"What if an owner provides incomplete or inconsistent information on their loan application forms?","url":"https://dealroom.so/sba-loans/basics/what-if-an-owner-provides-incomplete-or-inconsistent-information-on-their-loan-application"}],"related_terms":[{"term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"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":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"SBA Form 1919 Disclosure","url":"https://dealroom.so/glossary/sba-form-1919-disclosure"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"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-who-needs-to-fill-it-out","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."]}