{"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 application?","topic":"Required forms (1919, etc.)","audience":"lender","bot_mode":"lender","short_answer":"SBA Form 413, the Personal Financial Statement, provides a detailed snapshot of an individual's assets and liabilities, and it must be completed by all owners of 20% or more, plus any key management, and any guarantors.","rule":"Form 413 is essential for evaluating the personal financial strength of all significant individuals associated with the loan. It allows the lender to assess personal liquidity, net worth, and potential for additional collateral or repayment, aligning with prudent lending practices.","example":"For a business with three owners (40%, 30%, 30%) and a non-owner spouse who will personally guarantee the loan, all four individuals would be required to complete and submit a Form 413, providing details of their personal checking accounts, real estate, investments, debts, etc.","what_lenders_check":"Lenders rely on Form 413 for a holistic view of the borrower's personal financial position. Inaccuracies or omissions can undermine the credit analysis and may lead to eligibility issues or guaranty repairs/denials if discovered later.","required_facts":["SBA Form 413","Personal Financial Statement","Owners","Guarantors","Assets","Liabilities"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","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":"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?","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."]}