SBA Form 413 is an application form used by the US Small Business Administration (SBA) in assessing if the business owner should be deemed worthy of a loan. The relevant loans provided by the SBA involve the following types:
The SBA Form 413 aids in understanding if the applicant for the above-mentioned loans should be able to return the borrowed money. From 413 is called the Personal Financial Statement because business owners provide information about their assets and all their relevant financial liabilities.
The SBA exists mainly to support small businesses and to serve businesses in securing loans. If you are an entrepreneur intending on receiving a loan for your company, you will have to prepare a substantial package to apply for a loan program with the SBA.
Form 413 is one of the documents typically included in such a package.
Each proprietor and each owner of 20% or more of the equity should be listed in the form, together with the general partner, a manager of a limited liability company (LLC), and anyone who acts as a financial guarantor for the borrowing.
You should return the completed form to the business or the individual identified in the SBA 413 form for each specific loan type. These are the appropriate organizations and individuals for processing the relevant forms for each loan type:
The contents of Form 413 include the minimum required information about the applicant, such as their name and contact address, and detailed information about their assets and liabilities. This includes descriptions of all their sources of income and any unpaid taxes.
The applicant agrees to the processing of the stated information and permits the appropriate companies or individuals to inquire whether the stated information is correct. This is necessary for them to prove the creditworthiness of the applicant.
Crucially, the applicants also confirm that the information in the form and additional documents are accurate to the best of their knowledge. False statements in an SBA Form 413 are prosecuted as they violate federal law. The applicant lying in the form may receive large penalties or be prosecuted, in addition to the expected, in such circumstances, refusal of the application. Deliberately lying about the details in an SBA Form 413 can result in years of imprisonment and large fines.
To make sure that you have filled the form as accurately as possible, use our form-building software and follow our step-by-step guide.
As in many financial and legal documents, the first section requires you to state your name, full address, and your personal and work telephone numbers. Include the name of your business.
Here first, include assets stored in your accounts and any relevant property, including real estate. Calculate the total worth of these possessions. In the following sections, you will be asked to describe the assets in great detail.
The second part of the section of Form 413 lists your liabilities. These data are often related to loans or mortgages. Calculate the total and check that you have included every liability. Add any possible liabilities in the “contingent liabilities” box underneath.
There is a separate section for your income description.
Here you should also provide the details of the noteholders. Attach documents if necessary, to provide details.
Here you should also include attachments if needed.
Provide information about the type of real estate you have, including the mortgaged properties.
Make sure you provide an accurate and detailed description of your assets, unpaid taxes, and liabilities.
Do not omit any information about unpaid taxes or other liabilities.
If you do, provide the amount and the name of the insurance company.
Provide the date and let the applicants sign the form. Also, state their social security numbers. Carefully read the form before signing.