Are you struggling with SBA paperwork? That's totally understandable. Click here to learn how to fill out a personal financial statement
Book a Consultation CallWondering how to fill out a personal financial statement? When you're filling out this document, it's crucial to understand how to do it correctly. Filling out the document correctly can keep you from having to go back and do it again.
In this article, we will give you a step-by-step guide to filling it out. By the end of the guide, you'll be able to complete and submit the required paperwork.
Much like other forms that you've ever filled out when beginning an SBA Form 413, you'll need to have all your basic information easily accessible to fill out the application. The information that you'll need is your name, address, and other contact information. If you’ve moved recently, ensure that you provide your current address as SBA places importance on accurate and updated records to streamline the approval process.
You'll also need to note your marital status on the form if you're married. Your spouse's financial information should be listed as well. Ensure that you date your application accurately because the paperwork needs to be filed within 90 days of your loan application.
Before beginning the application, all your information needs to be up to date. If it's not up to date, you may experience some issues with your application.
The next piece of information that you need to add to the application is the information that pertains to your assets. In the assets section, you'll detail information about the assets that you own, including:
Real estate properties
Bonds and stocks
IRA accounts
Bank accounts
As of new guidelines, ensure you also include the current market value of each asset, as these figures are crucial for accurate evaluation by lenders.
If you own any stocks or bonds, list the current value of all the accounts combined. If you or your spouse owns real estate, then you'll need to list the value of the properties that you all currently own.
This field asks for the value of all the assets under your or your spouse's name. At the end of this section, you'll provide the total for everything that's listed above.
All that's required in this section is to round all your asset information up to the nearest dollar amount. You'll total all the debt that you owe and subtract the amount you've gotten from that total from your assets. Remember to disclose all recent debts, including those incurred due to regulatory changes affecting your financial situation. This keeps your application transparent and up-to-date.
Once you've subtracted this number, you'll have figured out the total of your net worth. From there, you'll combine your total liabilities and net worth.
When you arrive at this section, you'll need to give information about the salary earned by you and your spouse if they are currently working. The salary that you list on your paperwork should be the same as the information that you provide on your tax returns for the year.
The next part that you'll list is the income that you achieve from all your investments. This would mean investments that you've made from stocks, bonds, real estate ventures, etc. In terms of real estate income, you'll also need to provide information about the money you earned from your real estate properties after necessary expenses have been spent.
Contingent liabilities involve debts that you've guaranteed for others. If you or your spouse were a co-signer for someone else’s loan, that should be recorded here. If you’ve incurred any legal fees or judgments, include them. Recent regulation changes mean that lenders are paying closer attention to this information to assess overall risk, to ensure accurate reporting.
If you and your spouse have life insurance, include your policy number and details about the policyholder. State the total coverage amount and the insurance company, as well as the names of any beneficiaries. Under the latest guidelines, you may also need to submit proof of your life insurance value as part of your overall financial picture.
You're in the home stretch of the application now. All that's left for you to do is sign all the authorization statements on the form. The certification statement is a short paragraph that needs to be read thoroughly before signing it.
Once you're ready to sign the document, you'll provide your name, today's date, and your social security number. Then after filling in all this information, all that's left to do is sign the form.
Now, after all that has taken place, you need to review your documents. You'll need to ensure that all the information you've provided on the application is correct and accurate. Double-check your spouse’s information as well to avoid errors.
If any of the information on the application is false or left out, you could face fines and other penalties. You may also have to complete the entire application again. Therefore, it saves you time and effort, providing all the necessary information the first time.
When answering the question of how to fill out a personal financial statement, the guide above is the best way to ensure you get the application done correctly and efficiently. As a small business owner, if you’re looking to resolve your debt post-application, consider hiring an attorney for assistance. If you're looking for SBA services to help achieve the debt relief you need, check out the services on our website. Let us help you without the added hassle.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
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