How to fill out

Form 413
Personal Financial Statement
by FitSmallBusiness.com
All
Loan applicants

must complete SBA Form 413 –
the Personal Financial Statement,

Which is used to evaluate your loan
e...
If you and your spouse file a joint tax return,

both you and your
spouse’s name

should be on the form.
SBA Form 413

Must be completed by:

•Each proprietor of the business.
•Each limited partner with 20% or more interest.
•E...
FormInstructions
413
Step-by-Step
General

Information
Expiration Date
The expiration date is listed in the top right-hand side. Make sure that
the form is ...
General

Information
Expiration Date
The expiration date is listed in the top right-hand side. Make sure that
the form is ...
General

Information
Name
If you are married and file a joint tax return you should provide
both your name and your spouse...
General

Information
Name
If you are married and file a joint tax return you should provide
both your name and your spouse...
General

Information

BUSINESS NAME AND APPLICANT NAME
It is recommended to leave this blank until you talk to your bank o...
General

Information

BUSINESS NAME AND APPLICANT NAME
It is recommended to leave this blank until you talk to your bank o...
ASSETS
Cash on Hand & in Banks

Provide the total amount in all your
personal checking accounts.
ASSETS
Cash on Hand & in Banks

Provide the total amount in all your
personal checking accounts.

Savings Accounts

Provid...
ASSETS
IRA and Other Retirement Accounts
Provide the total value of all your Roth IRAs, IRAs, and 401ks.
ASSETS
IRA and Other Retirement Accounts
Provide the total value of all your Roth IRAs, IRAs, and 401ks.

Accounts & Notes...
ASSETS

Life Insurance- Cash Surrender Value Only
This only applies to certain types of life
insurance policies that inclu...
ASSETS

Life Insurance- Cash Surrender Value Only
This only applies to certain types of life
insurance policies that inclu...
ASSETS
Real State

List the value of all residences and commercial
property that you own in your personal name.
ASSETS
Real State

List the value of all residences and commercial
property that you own in your personal name.

Automobil...
ASSETS
Other Personal Property

Here you can include an estimate of the total
value of your miscellaneous personal
possess...
OTHER

ASSETS

This is a catch all section for all of your personal
property, including the net worth of your
ownership st...
TOTAL

ASSETS

Here you add up the total of
all your assets.
Liabilities

Accounts Payable

This section is for products and services
purchased on credit or on a regular payment
basis...
Liabilities

Accounts Payable

This section is for products and services
purchased on credit or on a regular payment
basis...
Liabilities

Installment Account (Auto)

Is for the total of all your vehicle loans and
leases, including cars, boats, air...
Liabilities

Installment Account (Auto)

Is for the total of all your vehicle loans and
leases, including cars, boats, air...
Liabilities

Loans on Life Insurance

If you have taken a loan against your life
insurance policy, list the total amount
o...
Liabilities

Unpaid Taxes

Include any unpaid real estate, income, or school
taxes.

Other Liabilities

Is a catch all for...
Liabilities

Total Liabilities

Add up the value of all your liabilities here.

Net Worth

This spot is for your total ass...
Section 1
Sources of Income
Salary

Include all wage income for you and
your spouse.
Only include the amount that you report on
your W2 or 1099 tax fo...
Net Investment
Income

This section includes any income from
dividends and interest from
stocks and bonds.
Real State Income
This is your annual net
income from rental
properties after
expenses.
Other Income
This section is for other
income that you receive on a
regular basis. Describe this
income in the box provide...
Section 2

Notes Payable to Banks and Others
This section details all your
debts and
accounts payable
This section details all your
debts and
accounts payable
Such as credit cards, personal
loans, and student loans. If you
d...
Name and Address
of Noteholders

Try to enter the name
and address of the banks
that hold your debt.
Space is limited, so ...
Original Balance:
Put the total amount when the
account was first established.
For credit cards, put $0. For
other loans, ...
Current
Balance:
Put the total
amount that you
currently owe.
Payment Amount
Frequency:
Put the minimum payment
and the schedule, which
is usually monthly.
How Secured or Endorsed
Type of Collateral:
Here you should indicate how your
loans are secured by describing the
object o...
Section 3
Stocks and Bonds
This section is where you list all the
marketable securities you
and your spouse own.
This section is where you list all the
marketable securities you
and your spouse own.
There is space for four, but if
need...
Number of Shares - Mark the total number you own.
Name of Security - Mark the name.
Cost - Mark the initial cost of your p...
Date of Quotation/Exchange This is the day you took the value.

Total Value – Multiply the market
value by the number of s...
Section 4
Real Estate Owned
This section is for a detailed
description of all the property
you own in your name.
List any property that you
report on ...
Type of Property: List type of property, such as “primary
residence”, “undeveloped lot”, or “investment property”.

Addres...
Present Market Value: Use the current
appraised value of the property if sold today.

Name and Address of Mortgage
Holder:...
Amount of Payment per Month/Year:
Put your monthly/yearly mortgage payment.
Write N/A if your mortgage is paid off.

Statu...
Section 5

Other Personal Property
Section 5

Other Personal Property
This section is for any personal
property of significant value, such as
jewelry, electr...
You can also use this section to detail the value of
your ownership stake in your small business.
You can add details that...
Section 6
Unpaid Taxes

List any unpaid taxes here,
and specify whether they
are state, federal, or local
taxes.
Section 7
Other Liabilities

This section is a catch all
where you can list any other
liabilities not previously
disclosed...
Section 8
Life Insurance

List all the life insurance policies
you have, including term, whole life,
and variable life ins...
Finishing up
Once you are finished completing the form, print it off
and assemble it in a binder with all the supporting
d...
And Finally...
To learn how to
simplify the process of
running your business
visit us at....
www.FitsmallBusiness.com
Thanks for watching

Click here to tweet this
presentation.
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How to Fill Out Form 413 - The Personal Financial Statement

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Transcript of "How to Fill Out Form 413 - The Personal Financial Statement"

  1. 1. How to fill out Form 413 Personal Financial Statement by FitSmallBusiness.com
  2. 2. All Loan applicants must complete SBA Form 413 – the Personal Financial Statement, Which is used to evaluate your loan eligibility based on the personal net worth of you and your spouse.
  3. 3. If you and your spouse file a joint tax return, both you and your spouse’s name should be on the form.
  4. 4. SBA Form 413 Must be completed by: •Each proprietor of the business. •Each limited partner with 20% or more interest. •Each general partner. •Each stockholder owning 20% or more voting stock. •Any person or entity providing a guaranty on the loan.
  5. 5. FormInstructions 413 Step-by-Step
  6. 6. General Information Expiration Date The expiration date is listed in the top right-hand side. Make sure that the form is current and has not expired.
  7. 7. General Information Expiration Date The expiration date is listed in the top right-hand side. Make sure that the form is current and has not expired. “As of” Date This indicates the date that all the information provided is based off of.
  8. 8. General Information Name If you are married and file a joint tax return you should provide both your name and your spouse’s name.
  9. 9. General Information Name If you are married and file a joint tax return you should provide both your name and your spouse’s name. Residence Use your current address.
  10. 10. General Information BUSINESS NAME AND APPLICANT NAME It is recommended to leave this blank until you talk to your bank or CPA as this may change on their advice.
  11. 11. General Information BUSINESS NAME AND APPLICANT NAME It is recommended to leave this blank until you talk to your bank or CPA as this may change on their advice. Business and Residence Phone For business phone, provide a direct business line, not a secretary. For residence phone, give your cell phone to enable quicker communication.
  12. 12. ASSETS Cash on Hand & in Banks Provide the total amount in all your personal checking accounts.
  13. 13. ASSETS Cash on Hand & in Banks Provide the total amount in all your personal checking accounts. Savings Accounts Provide the total amount in all your savings accounts, money market accounts, and CDs.
  14. 14. ASSETS IRA and Other Retirement Accounts Provide the total value of all your Roth IRAs, IRAs, and 401ks.
  15. 15. ASSETS IRA and Other Retirement Accounts Provide the total value of all your Roth IRAs, IRAs, and 401ks. Accounts & Notes Receivable This section includes any personal loans you have given people.
  16. 16. ASSETS Life Insurance- Cash Surrender Value Only This only applies to certain types of life insurance policies that include a cash payout when the policy is cancelled
  17. 17. ASSETS Life Insurance- Cash Surrender Value Only This only applies to certain types of life insurance policies that include a cash payout when the policy is cancelled Stock and Bonds Indicate the total value of all marketable securities owned by you, your spouse, and jointly.
  18. 18. ASSETS Real State List the value of all residences and commercial property that you own in your personal name.
  19. 19. ASSETS Real State List the value of all residences and commercial property that you own in your personal name. Automobile-Present Value This section includes the present value of all of the cars, boats, and recreational vehicles you own.
  20. 20. ASSETS Other Personal Property Here you can include an estimate of the total value of your miscellaneous personal possessions, such as jewelry, tools, artwork, electronics, antiques, etc.
  21. 21. OTHER ASSETS This is a catch all section for all of your personal property, including the net worth of your ownership stake in any businesses. There are many ways to value a company, which you can find here.
  22. 22. TOTAL ASSETS Here you add up the total of all your assets.
  23. 23. Liabilities Accounts Payable This section is for products and services purchased on credit or on a regular payment basis.
  24. 24. Liabilities Accounts Payable This section is for products and services purchased on credit or on a regular payment basis. Notes Payable to Banks and Others This section is for the total balance of all your credit cards and personal lines of credit.
  25. 25. Liabilities Installment Account (Auto) Is for the total of all your vehicle loans and leases, including cars, boats, airplanes, etc.
  26. 26. Liabilities Installment Account (Auto) Is for the total of all your vehicle loans and leases, including cars, boats, airplanes, etc. Installment Account (Other) Is for any other installment loans, such as student loans or other personal loans payable for more than one year.
  27. 27. Liabilities Loans on Life Insurance If you have taken a loan against your life insurance policy, list the total amount outstanding. Mortgages on Real Estate Put the total amount you owe on all your personal mortgages. Do not put the original amount, only the current outstanding debt.
  28. 28. Liabilities Unpaid Taxes Include any unpaid real estate, income, or school taxes. Other Liabilities Is a catch all for any other liabilities you have not listed so far.
  29. 29. Liabilities Total Liabilities Add up the value of all your liabilities here. Net Worth This spot is for your total assets minus your total liabilities. Total Add your total liabilities to your total net worth
  30. 30. Section 1 Sources of Income
  31. 31. Salary Include all wage income for you and your spouse. Only include the amount that you report on your W2 or 1099 tax forms.
  32. 32. Net Investment Income This section includes any income from dividends and interest from stocks and bonds.
  33. 33. Real State Income This is your annual net income from rental properties after expenses.
  34. 34. Other Income This section is for other income that you receive on a regular basis. Describe this income in the box provided.
  35. 35. Section 2 Notes Payable to Banks and Others
  36. 36. This section details all your debts and accounts payable
  37. 37. This section details all your debts and accounts payable Such as credit cards, personal loans, and student loans. If you do not have enough space, attach another spreadsheet with the same information
  38. 38. Name and Address of Noteholders Try to enter the name and address of the banks that hold your debt. Space is limited, so use abbreviations if you need to.
  39. 39. Original Balance: Put the total amount when the account was first established. For credit cards, put $0. For other loans, put the initial loan amount.
  40. 40. Current Balance: Put the total amount that you currently owe.
  41. 41. Payment Amount Frequency: Put the minimum payment and the schedule, which is usually monthly.
  42. 42. How Secured or Endorsed Type of Collateral: Here you should indicate how your loans are secured by describing the object or real estate used as collateral.
  43. 43. Section 3 Stocks and Bonds
  44. 44. This section is where you list all the marketable securities you and your spouse own.
  45. 45. This section is where you list all the marketable securities you and your spouse own. There is space for four, but if need be you can attach a spreadsheet with more. If you need to attach an additional spreadsheet, be sure to include your name, “as of” date and “SBA Form 413 - Section 3”.
  46. 46. Number of Shares - Mark the total number you own. Name of Security - Mark the name. Cost - Mark the initial cost of your purchase. Market Value Quotation/ Exchange - Mark the value of the security on the as-of day you selected.
  47. 47. Date of Quotation/Exchange This is the day you took the value. Total Value – Multiply the market value by the number of shares you own. This should match what you entered on page 1.
  48. 48. Section 4 Real Estate Owned
  49. 49. This section is for a detailed description of all the property you own in your name. List any property that you report on your personal taxes. Use “Property A” for your primary residence. Use sections B and C for additional properties.
  50. 50. Type of Property: List type of property, such as “primary residence”, “undeveloped lot”, or “investment property”. Address: Use the same address that is on your taxes. Date of Purchase: Use the date on your mortgage bill of sale. Original Cost: List the purchase price.
  51. 51. Present Market Value: Use the current appraised value of the property if sold today. Name and Address of Mortgage Holder: Put the bank name and address. If you hold numerous mortgages from same bank, put account number as well.
  52. 52. Amount of Payment per Month/Year: Put your monthly/yearly mortgage payment. Write N/A if your mortgage is paid off. Status of Mortgage: Write “current”, “In Foreclosure”, or “Paid in Full”.
  53. 53. Section 5 Other Personal Property
  54. 54. Section 5 Other Personal Property This section is for any personal property of significant value, such as jewelry, electronics, retirement accounts, personal assets, cars, recreational vehicles, etc
  55. 55. You can also use this section to detail the value of your ownership stake in your small business. You can add details that justify your valuation of your company. For more information on how to value your company, click here.
  56. 56. Section 6 Unpaid Taxes List any unpaid taxes here, and specify whether they are state, federal, or local taxes.
  57. 57. Section 7 Other Liabilities This section is a catch all where you can list any other liabilities not previously disclosed on the form.
  58. 58. Section 8 Life Insurance List all the life insurance policies you have, including term, whole life, and variable life insurance. Provide face value that would be provided to your beneficiaries. Also list the full names of policy beneficiaries.
  59. 59. Finishing up Once you are finished completing the form, print it off and assemble it in a binder with all the supporting documents that verify the details on the form.
  60. 60. And Finally...
  61. 61. To learn how to simplify the process of running your business visit us at....
  62. 62. www.FitsmallBusiness.com Thanks for watching Click here to tweet this presentation.
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