SBA 7(a) Q&A
Short answer
A personal financial statement (PFS) provides a snapshot of your personal assets and liabilities, and it's needed to assess your overall financial strength and capacity to support the business loan.
All owners with a 20% or more stake in the business are required to submit a PFS (SBA Form 413). This document details personal cash, investments, real estate, other assets, and all personal debts. Lenders use it to evaluate the borrower's global financial picture, including personal liquidity and net worth, which impacts their ability to make equity injections and provide personal guaranties.
A PFS would list your home's value, mortgage balance, car loans, credit card debt, bank account balances, and investment holdings, calculating your personal net worth and debt-to-income ratio.
Insider move
Lenders scrutinize the PFS to verify the information, identify any undisclosed liabilities, and ensure the borrower's personal financial position is strong enough to support the business loan, especially in case of default. They often request supporting documentation for major assets and liabilities.
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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