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Personal financial statement PFS
Also called SBA Form 413, PFS.
A signed schedule of an individual's assets, liabilities, income and contingent liabilities, required from significant owners and guarantors on most bank and SBA files.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
It lists what the individual owns, what they owe, what they earn, and what they have guaranteed for others. On SBA files it is submitted on a prescribed form and is required from owners at or above the ownership threshold the SBA specifies, plus guarantors; spousal information is required in defined circumstances, and community property state rules affect what is reportable and reachable.
Lenders use it for four things: global cash flow analysis combining business and personal obligations, liquidity to see whether the owner can survive a downturn, the source of any required equity injection, and collateral outside the business.
It is signed, dated and certified. That converts it from a worksheet into a representation the lender relied on, with the consequences that follow if it turns out to be wrong.
Where this one catches people
Contingent liabilities is the line people leave blank, and it is the line lenders check. Every other business obligation you have guaranteed belongs there, and UCC and credit searches will surface them anyway. An omission that feels like tidiness at application looks like misrepresentation after a default - and misrepresentation is what turns a business loss into a personal legal problem.
Where you will meet this term
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Personal financial statement — common questions
What does personal financial statement mean?
A signed schedule of an individual's assets, liabilities, income and contingent liabilities, required from significant owners and guarantors on most bank and SBA files.
Where does personal financial statement catch people out?
Contingent liabilities is the line people leave blank, and it is the line lenders check. Every other business obligation you have guaranteed belongs there, and UCC and credit searches will surface them anyway. An omission that feels like tidiness at application looks like misrepresentation after a default - and misrepresentation is what turns a business loss into a personal legal problem.
Is personal financial statement the same as an interest rate?
Personal financial statement is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does personal financial statement apply to?
Term Loan, Business Line of Credit, SBA Loan, Asset-Based Lending.
Is there a worked example of personal financial statement?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside personal financial statement?
Global cash flow analysis, Operating agreement, Personal guarantee, Qualification criteria, SBA 7(a) loan.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.