If you are married and file a joint tax return with your spouse, your spouse must appear on the form to prove that you have joint assets and liabilities. However, your spouse is not considered a guarantor of the SBA loan. In the top field of page two, you will be asked for your personal data such as your name, home address and some questions about the company. Keep in mind that any owner or member who owns 20% or more of the business must complete form SBA 413. In this section, you will be asked to provide the following information about your business and personal sources of income: In this section, you will provide a detailed description of all the properties you own on your own behalf. List all the properties that are reported on your personal tax return. Property A is your principal residence if you own it. If you own more than three properties, include additional sheets or a « real estate plan » that identifies the same information as on the SBA`s personal financial statement form. Once collected, you should keep these documents in an accessible place, as you will likely need to refer to them throughout the SBA loan process. Once this preparatory work is complete, you can begin filling out the rest of the SBA form for personal financial statements. Once you`ve gathered and organized all your paperwork, filling out the rest of the form is relatively easy. Depending on the number of assets and liabilities you have, completing form SBA 413 can take as little as 15 minutes. Do all business owners need to complete Form 413? The short answer is yes.

Any owner who owns 20% or more of the business must complete Form 413. The Small Business Administration (SBA) requires Form 413, personal financial report, for most SBA loans, such as EIDL loan, loan 7(a), and 504 loan. The SBA will review your personal financial information to determine if you are able to repay the requested loan. While completing multiple forms can be tedious, it`s important to pay close attention to SBA Form 413, as this can affect your business` ability to secure financing. In this blog post, you`ll learn how to fill out this form in order to increase your chances of being approved for an SBA loan. Once you have completed the form, sign and date page three and send it to your lender. It is important that you do not omit any relevant information, especially in the context of responsibilities. If a lender finds a debt that you didn`t enter on Form 413, they might think you`re trying to hide information and reject your application. Form SBA 413 is a personal financial statement used to apply for disaster loans SBA 7(a), SBA 504 and Small Business Administration (SBA). Your lender will include the personal financial information you report in their analysis of your business` creditworthiness and repayment. To complete the SBA 413 form quickly and easily, organize and make available your financial records.

With respect to the EIDL program, the SBA initially stated that the total potential amount a business could be eligible for is based on its revenue and cost of goods sold (COGS) in 2019. We have received proprietary information that SBA loan officers use cash flow analysis to approve or reject EIDL loan applications (and likely other types of loans as well). Form 413 is part of this calculation. Once you have completed the summary of assets and liabilities and each person listed in the SBA`s Personal Financial Report has completed and signed the certification on page 3, you will have finished preparing for form SBA 413. You provide this form to your lender along with your SBA loan application and other supporting documents. When you have completed form SBA 413, sign and date the form, then put it in a folder with your receipts. Don`t add anything you can`t support with the documentation, as your lender will likely ask you for some of it. Be prepared to provide copies to your lender upon request. In this section, you list the negotiable securities that you and your spouse own.

This does not include retirement planning, as this is indicated in another section of the form. If necessary, you can attach additional pages with additional entries. In this section, you provide more details about the banknotes that you have listed in the Liabilities field. Provide the name of the account holder, your balance, and other balance information. The initial balance would be $0 for credit cards and lines of credit. In this section, you must provide each type of property you own, the address, date of purchase and initial cost, current market value and any relevant mortgage information. If the property is listed on your personal tax return, it must be included in this section. If you need to submit Form SBA 413 for the type of SBA loan you are applying for and you are filing a joint tax return, your spouse`s information must be included.

This does not mean that your spouse will be the guarantor of the loan, but the inclusion of your spouse`s financial information informs the SBA and your lender that you have joint assets and liabilities. Your combined assets and liabilities must be reported, unless a legal document, such as . B a prenuptial agreement, does not explicitly separate certain assets. The instructions for providing this information and the definitions of the terms used in this form are as follows: If you do not have enough space to list all your loans, attach another piece of paper with the required information. You can use as many additional pages as you need. If so, make sure they all include the date of « status » in your personal BSO financial statements, see Section 2, include the name of the business applicant and are signed by you and your spouse. Just like in the section above, section 3 (Stocks and Bonds) is the field where you provide more information about this type of asset. In section 7, list the details of any other responsibilities you assume. Indicate what it is, how much you owe, who you owe, when it is due and how much you pay monthly. It is important that you be honest and accommodating when filling out this form. If you don`t, the SBA will likely disqualify your application.

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