{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/which-individuals-must-complete-sba-form-413-and-how-does-it-inform-credit-decisions","api_url":"https://dealroom.so/api/public/questions/which-individuals-must-complete-sba-form-413-and-how-does-it-inform-credit-decisions","question":"Which individuals must complete SBA Form 413 and how does it inform credit decisions?","topic":"Required Forms","audience":"lender","bot_mode":"lender","short_answer":"SBA Form 413 (Personal Financial Statement) must be completed by all owners of 20% or more of the business, all partners, officers, directors, and any other individuals providing a personal guaranty. It informs credit decisions by detailing personal assets, liabilities, and net worth, which is crucial for assessing guarantor strength.","rule":"The Personal Financial Statement (SBA Form 413) provides a snapshot of the individual's financial condition, including liquid assets, real estate, debts, and other liabilities. Lenders use this information to evaluate the guarantor's ability to support the loan if the business defaults, aligning with prudent lending standards and collateral requirements.","example":"A business has three owners: 50%, 30%, and 20%. The lender requires all three owners to complete SBA Form 413. The form reveals one owner has significant unencumbered personal real estate, which the lender may then consider for additional collateral or as a strong indicator of guarantor strength.","what_lenders_check":"Lenders must ensure all required individuals complete Form 413 accurately and completely. Incomplete or misleading information can indicate character issues or hidden liabilities, impacting credit decisions and potentially jeopardizing the SBA guaranty if not properly verified and addressed.","required_facts":["Owner > 20%","Partners/officers","Guarantors","Personal assets","Net worth"],"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":"How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-sba-form-1919-ensure-borrower-eligibility-compliance-for-a-7-a-loan"},{"question":"What is the primary purpose of SBA Form 1919 and how does a lender use it in 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-sba-form-1919-and-how-does-a-lender-use-it-in-7-a-underwrit"},{"question":"What is the significance of the \"Statement of Personal History\" section on SBA Form 1919 for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-is-the-significance-of-the-statement-of-personal-history-section-on-sba-form-1919-for"},{"question":"Which SBA forms are mandatory for every 7(a) loan application?","url":"https://dealroom.so/for-lenders/questions/which-sba-forms-are-mandatory-for-every-7-a-loan-application"},{"question":"What is the purpose of collecting borrower certifications on SBA Form 1919?","url":"https://dealroom.so/for-lenders/questions/what-is-the-purpose-of-collecting-borrower-certifications-on-sba-form-1919"},{"question":"What is the importance of the SBA Form 1919 (Borrower Information Form) in the 7(a) loan application process?","url":"https://dealroom.so/for-lenders/questions/what-is-the-importance-of-the-sba-form-1919-borrower-information-form-in-the-7-a-loan-appl"}],"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":"Required guarantor","url":"https://dealroom.so/glossary/required-guarantor"},{"term":"SBA Form 1919 Disclosure","url":"https://dealroom.so/glossary/sba-form-1919-disclosure"},{"term":"SBA Credit Approval","url":"https://dealroom.so/glossary/sba-credit-approval"},{"term":"Required Lien Position","url":"https://dealroom.so/glossary/required-lien-position"}],"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/which-individuals-must-complete-sba-form-413-and-how-does-it-inform-credit-decisions","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."]}