SBA Form 413

sba form 413
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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:

  • 7(a)
  • 504
  • Guaranteed sureties

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 lender processes the 7(a) loans.
  • The Certified Development Company (CDC) processes the 504 loans.
  • The Surety Company or Agents provide sureties.

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.

How to Fill Out the SBA Form 413

  • Include Identifying Details

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.

step 1 include identifying details - filling out a sba form 413

  • Describe Your Assets and Liabilities

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.

step 2 describe your assets and liabilities - filling out a sba form 413

  • Describe Your Sources of Income

There is a separate section for your income description.

step 3 describe your sources of income - filling out a sba form 413

  • State If There are Any Notes That Should Be Payable

Here you should also provide the details of the noteholders. Attach documents if necessary, to provide details.

step 4 state if there are any notes that should be payable - filling out a sba form 413

  • Describe Your Stocks and Bonds

Here you should also include attachments if needed.

step 5 describe your stocks and bonds - filling out a sba form 413

  • State What Real Estate You Own

Provide information about the type of real estate you have, including the mortgaged properties.

step 6 state what real estate you own - filling out a sba form 413

  • Describe Other Properties and Assets

Make sure you provide an accurate and detailed description of your assets, unpaid taxes, and liabilities.

step 7 describe other properties and assets - filling out a sba form 413

  • Provide Detailed Description of Unpaid Taxes and Other Liabilities

Do not omit any information about unpaid taxes or other liabilities.

step 8 provide detailed description of unpaid taxes and other liabilities - filling out a sba form 413

  • State If You Have a Life Insurance

If you do, provide the amount and the name of the insurance company.

step 9 state if you have a life insurance - filling out a sba form 413

  • Complete the Form By Signing It

Provide the date and let the applicants sign the form. Also, state their social security numbers. Carefully read the form before signing.

step 10 complete the form by signing it - filling out a sba form 413