For SBA lenders
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.
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.
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.
Insider move
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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