Form 413

Definition

The SBA statement of what each owner owns, owes, and has guaranteed.

Why It Matters

Lenders read this beside the deal itself, because your side of the ledger is half the underwrite and a thin balance sheet can decline a business that covers its own debt comfortably. Fill it conservatively: an optimistic value contradicted by the statement behind it costs credibility on every other number you have given them. Do not leave the contingent liabilities blank either, since a guarantee on someone else's loan surfaces in the credit pull anyway.

In numbers: The 413 lists what you own and owe, and the lender reconciles it against statements: a $250k brokerage line that is really $180k after a market dip is the kind of gap that reopens an approved file.