SBA loan basics
Short answer
A personal financial statement is a document outlining your personal assets, liabilities, and net worth, which lenders use to assess your overall financial strength and capacity to repay the loan.
The SBA requires a personal financial statement (SBA Form 413) from all 20% or more owners and guarantors. This provides lenders with a clear picture of the borrower's personal liquidity, debt burden, and ability to support the business, especially in its early stages or during downturns.
A borrower submits a PFS showing $200,000 in liquid assets, $500,000 in real estate equity, and $150,000 in personal debt. The lender analyzes this to ensure sufficient personal resources are available if the business faces challenges.
Insider move
Lenders verify the accuracy of the information on the PFS, often requiring supporting documentation for assets and liabilities. They assess the borrower's ability to inject additional capital if needed and their capacity to handle both personal and business debt.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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