{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7-a-loan","api_url":"https://dealroom.so/api/public/questions/what-is-the-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7-a-loan","question":"What is the purpose of SBA Form 413, and which individuals must complete it for a 7(a) loan?","topic":"Required forms (1919, etc.)","audience":"lender","bot_mode":"lender","short_answer":"SBA Form 413 (Personal Financial Statement) collects detailed financial information from individuals required to guarantee the loan. It must be completed by all owners of 20% or more, non-owner spouses, and other key individuals as required by the lender and SBA.","rule":"SBA Form 413 provides the lender and SBA with a snapshot of an individual's personal assets, liabilities, and net worth. This information is critical for assessing the personal financial strength and repayment ability of guarantors, ensuring they meet prudent lending standards. The form also captures details on contingent liabilities and other relevant financial commitments.","example":"For a business with two owners, one owning 70% and the other 30%, both would be required to complete and sign SBA Form 413. If the 70% owner's spouse is not an owner but has significant personal assets, the lender might also require the spouse to complete a Form 413.","what_lenders_check":"Lenders must ensure the form is accurately and completely filled out, dated, and signed. They verify the information against credit reports, tax returns, and other financial documentation to identify inconsistencies, undisclosed liabilities, or insufficient liquidity for personal guaranties.","required_facts":["Owner percentage","Guarantor requirement","Spousal involvement","Personal assets/liabilities","Credit assessment"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form","13 CFR Part 120 - Business Loans"],"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":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What specific fields in SBA Form 1919 are most critical for initial eligibility review, and what common errors lead to delays?","url":"https://dealroom.so/for-lenders/questions/what-specific-fields-in-sba-form-1919-are-most-critical-for-initial-eligibility-review-and"},{"question":"What specific certifications about criminal history are required from principals on SBA Form 1919 for 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-certifications-about-criminal-history-are-required-from-principals-on-sba-fo"},{"question":"What is the lender's responsibility for validating the business purpose and use of proceeds certified on SBA Form 1919?","url":"https://dealroom.so/for-lenders/questions/what-is-the-lender-s-responsibility-for-validating-the-business-purpose-and-use-of-proceed"},{"question":"What is the consequence for a lender if there are inconsistencies between the borrower's SBA Form 1919 and other application documents?","url":"https://dealroom.so/for-lenders/questions/what-is-the-consequence-for-a-lender-if-there-are-inconsistencies-between-the-borrower-s-s"},{"question":"Which specific lender certifications are required on the Lender's Application for Guaranty (or its E-Tran equivalent) to ensure loan eligibility?","url":"https://dealroom.so/for-lenders/questions/which-specific-lender-certifications-are-required-on-the-lender-s-application-for-guaranty"},{"question":"What is the purpose of SBA Form 413, and which individuals must complete it for a 7(a) loan application?","url":"https://dealroom.so/for-lenders/questions/what-is-the-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7-a-loan-"}],"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":"Acceleration of the Note","url":"https://dealroom.so/glossary/acceleration-of-the-note"},{"term":"Complete Change of Ownership","url":"https://dealroom.so/glossary/complete-change-of-ownership"},{"term":"M&A advisor","url":"https://dealroom.so/glossary/ma-advisor"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"}],"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/for-lenders/questions/what-is-the-purpose-of-sba-form-413-and-which-individuals-must-complete-it-for-a-7-a-loan","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."]}