How To Fill Out SBA Form 413 For Your Small Business

SBA loans supply lengthy compensation phrases and extra favorable charges than different enterprise financing choices, making them a sexy possibility for a lot of small enterprise homeowners. Nearly $30 billion have been awarded to this point in fiscal 12 months 2025 for 7(a) and 504 loans, simply two of the choices accessible from the Small Enterprise Administration.

Competitors is fierce, and comes with a prolonged approval course of and strict documentation necessities, together with SBA kind 413, the Private Monetary Assertion. Lenders and the SBA use Type 413 to evaluate your creditworthiness and skill to repay a mortgage, so getting it proper is vital to approval. For debtors hoping to qualify for a 7(a), 8(a), 504, catastrophe mortgage or woman-owned small enterprise certification, figuring out the right way to fill out the shape and what to incorporate may very well be the distinction between getting funded or denied.

What’s SBA Type 413?

SBA Type 413, formally known as “Private Finance Assertion,” is a kind enterprise homeowners should fill out for many SBA loans.

The U.S. Small Enterprise Administration makes use of this type to evaluate mortgage candidates’ creditworthiness and compensation potential. The shape requires you to offer a snapshot of your distinctive monetary state of affairs by sharing details about your belongings, liabilities and revenue streams.

Who wants to finish SBA Type 413?

You’ll want to finish SBA Type 413 in the event you’re making use of for a 7(a) mortgage, 504 mortgage or surety bond. If you happen to’re making use of for a enterprise catastrophe mortgage, you could full this type except your small business is structured as a sole proprietorship.

The next sorts of candidates are required to finish SBA Type 413:

• All proprietors
• Every basic associate
• All homeowners with a 20 % or greater stake within the firm
• Every managing member of an LLC
• Any particular person guaranteeing the mortgage

A separate Type 413 is required for the proprietor’s partner and minor kids for all mortgage and program varieties, apart from catastrophe enterprise loans.

How do you fill out SBA Type 413?

If you happen to’re able to fill out SBA Type 413, comply with the steps beneath.

1. Collect required paperwork

Earlier than you start filling out SBA Type 413, collect the non-public and enterprise paperwork that comprise the knowledge wanted to finish it, resembling:

• Retirement account statements
• Financial institution statements
• Funding statements
• Life insurance coverage insurance policies
• Mortgage statements
• Pay stubs that present your annual revenue
• W-2s
• Actual property and car data, together with lien particulars, in relevant

Essential: The paperwork you present should be present: inside 90 days for catastrophe loans and 120 days for all different qualifying mortgage varieties.

2. Choose the SBA mortgage sort or program

After you’ve gathered the required paperwork, choose the SBA mortgage sort or program you’re making use of for on the primary web page of SBA Type 413.

Listed below are the choices you’ll be able to select from:

3. Enter enterprise and private data

On the prime of web page two of the shape, present your identify, enterprise identify, dwelling deal with, enterprise and residential cellphone quantity. Additionally, verify what sort of enterprise entity you have got:

Afterward, choose whether or not you’re married in the event you’re making use of for the WOSB program.

4. Add your belongings and their worth

For this part, you’ll have to checklist your whole belongings — gadgets of worth, resembling a checking account or money. You’ll additionally want to offer the worth of your partner’s belongings if married. Your partner might want to full a separate Type 413 for the WOSB and eight(a) packages.

Beneath are some further belongings you’re required to checklist:

• Retirement accounts. Checklist the worth of your retirement accounts, resembling Roth IRAs, Conventional Roths, 401(okay)s and 403(b)s. If married, embody the entire worth of your spouses’ accounts as properly.
• Accounts and notes receivable. You probably have unpaid invoices, checklist the worth right here.
• Life insurance coverage — money give up worth solely. In case your life insurance coverage coverage features a money worth element, you’ll must checklist the present payout quantity you’d obtain after canceling your coverage. This selection comes with complete everlasting life insurance coverage insurance policies. Time period life insurance policies — insurance policies with a set expiration interval — don’t embody a money worth possibility.
• Shares and bonds. Write down the present market worth of any shares and bonds you and your partner have bought. You’ll present further particulars in part three.
• Actual property. Present the entire present market worth of all the actual property you and your partner personal, together with main residences, rental properties and business property. You’ll share extra particulars in part 4.
• Vehicles. Checklist the present market worth of vehicles you and your partner personal. Don’t embody any leased automobiles — they aren’t thought of belongings.
• Different private property. Embody the approximate worth of your private stuff, resembling an engagement ring, furnishings and electronics.
• Different belongings. Present an estimated worth for any asset not listed above. You’ll describe them intimately in part 5.

5. Add your liabilities and their worth

This part requires you to checklist your liabilities. If married, you’ll additionally checklist any joint liabilities you have got together with your partner.

Liabilities you’ll present data for embody:

• Accounts and notes payable. If you happen to’ve personally loaned cash to a 3rd social gathering, checklist the excellent quantity.
• Car installment accounts. Present month-to-month funds and complete excellent steadiness for any automobiles you lease or finance.
• Different installment accounts. You probably have every other sort of installment accounts, embody these.
• Loans towards life insurance coverage. If you happen to’ve taken out a mortgage utilizing your life insurance coverage coverage as collateral, embody the entire quantity you borrowed.
• Mortgages on actual property.
• Unpaid taxes. Write down any taxes you owe since submitting your most up-to-date tax return.
• Different liabilities. Checklist the entire excellent steadiness on every other money owed not listed above. You’ll present extra particulars in part seven.

When you’ve completed itemizing your liabilities, add them up. Afterward, calculate your web value by subtracting your complete liabilities out of your complete belongings.

6. Checklist revenue and any contingent liabilities

In part one, you’ll have to checklist your sources of revenue, together with:

• Wage. Checklist your annual wage in your tax return and your partner’s annual wage if married.
• Web funding revenue. Present the entire quantity you earn from curiosity or dividends in your investments.
• Actual property revenue. Checklist the quantity you earn from actual property minus bills.
• Different revenue. Enter every other revenue not listed above and describe it intimately within the final field on web page two. Together with alimony or youngster assist funds to you is non-compulsory, however you might embody it to depend in direction of your complete revenue.

You might also have to checklist contingent liabilities in the event you meet sure necessities:

• As endorser or co-maker. Enter any money owed through which you or your partner are co-signers.
• Authorized claims and judgments. Present the excellent quantity of any pending litigation.
• Provision for federal revenue tax. Checklist the estimated quantity your small business must put aside to cowl federal taxes for the present 12 months.
• Different particular debt. Share every other debt you didn’t checklist above.

7. Add any further particulars

When you’ve stuffed out part one, full sections two by way of eight — these sections require you to checklist further details about the belongings and liabilities you listed earlier.

• Part 2: Checklist particulars of any money owed you owe to banks or different lenders.
• Part 3: Share extra details about shares and bonds you personal.
• Part 4: Present extra particulars about any actual property you personal.
• Part 5: Add further particulars about every other private property and different belongings you listed.
• Part 6: Present particulars about any unpaid taxes.
• Part 7: Enter extra particulars about any liabilities you listed within the different liabilities part.
• Part 8: Share particulars about any life insurance coverage coverage you included.

8. Overview the shape, signal and date

Double-check the knowledge you offered on the shape to make sure accuracy since errors could result in an SBA mortgage denial. If you happen to need assistance reviewing the shape, contemplate contacting an accountant or mortgage specialist. As soon as completed, you’ll signal, date and supply your Social Safety quantity. If you happen to’re married, together with spousal belongings, and are a enterprise proprietor, your partner may even must signal, date and supply their SSN.

The underside line

SBA loans typically include decrease charges and extra versatile compensation phrases than standard enterprise loans. However getting one is usually a prolonged course of. Though gathering the required paperwork to fill out SBA Type 413 might be tedious, doing so could provide help to qualify for top-of-the-line small enterprise financing choices.

Steadily requested questions