Personal Financial Statement Form 413

The Personal Financial Statement, often referred to as a PFS for short, is one of the most important documents to the loan application.

The PFS must be completed by all individuals who own 20% or more of the borrowing entity and is to include all personal assets, liabilities, annual income and debt obligations. I want to stress personal financial information, not business. I will address what is necessary to properly document Business financial information in future episodes.

The PFS requires that all requested and relevant information be included. Leaving out details such as monthly rent, credit card obligations,home equity lines of credit and real estate owned will render the PFS incomplete and cause delays, or even worse, a mis-understanding of one or more of the business owners capacity to borrow, which can be the difference between a decline or approval.

The PFS reveals to the underwriter the guarantors capacity to borrow as well as how they’ve historically managed their personal finances which acts as a strong indicator how they will operate the subject business and how trustworthy they are to repay the loan, if approved.

Next I’m going to reveal five best practices to ensure the PFS is completed accurately and quickly.

1. Find a time and place to complete the PFS where you will not be interrupted by customers or employees
2. Review the PFS and then gather all required supporting documents prior to starting, including bank, retirement, brokerage, life insurance and mortgage statements
3. Instead of stopping when you are confused or don’t know how to answer a particular question, create a list of questions and keep moving forward
4. Email your list of questions to your ThinkSBA loan specialist or discuss via phone
5. Be honest and accurate, as all information will be confirmed through the collection of supporting documents and a personal credit check

Once you’ve answered all the questions you are now required to sign the form, certifying the honesty and accuracy of your answers to the Federal Government. Therefore always, I stress always answer the questions honestly and accurately. Inaccurate or fraudulent answers will be discovered and may result in future prosecution.

In conclusion, the PFS is vitally important to successfully completing the SBA Loan application. When you’re stuck, don’t stop but keep moving forward writing down your questions and then contact your ThinkSBA loan specialist right away.

Congratulations! You’re now ready to complete Personal Financial Statement Form 413.

My SBA Loan Pro

The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.

Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.

You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.

You can listen and subscribe on your favorite platforms including Apple Podcasts, Spotify, Google Podcasts, Anchor and Stitcher.