What is a personal financial statement and what goes on it?
A personal financial statement is a form, often SBA Form 413 or a lender's own version, listing all your assets (cash, real estate, investments, retirement accounts), liabilities (mortgages, loans, credit cards), and resulting net worth, plus contingent liabilities like guarantees on other loans. Nearly every commercial, SBA, and larger investor loan requires one from each guarantor owning 20 percent or more of the borrowing entity, and lenders use it to assess liquidity, leverage, and whether you could absorb a problem with the property.
What goes on the form
| Category | Examples |
|---|---|
| Cash and cash equivalents | Checking, savings, money market accounts |
| Investments | Brokerage accounts, stocks, bonds, retirement accounts |
| Real estate owned | Each property, its value, and its debt |
| Other assets | Business interests, vehicles, personal property of significant value |
| Liabilities | Mortgages, auto loans, credit card balances, personal loans |
| Contingent liabilities | Guarantees you have signed on other loans, even if not currently in default |
| Net worth | Total assets minus total liabilities |
Who has to provide one
Typically every individual or entity owning 20 to 25 percent or more of the borrowing entity, since each of those owners is usually required to personally guarantee the loan. On an LLC with 4 equal members at 25 percent each, all 4 typically submit one.
How lenders use it
Liquidity. Cash and easily liquidated investments show whether you could cover reserves, cost overruns, or a payment gap.
Net worth relative to the loan. Agency and larger commercial lenders often want combined guarantor net worth near or above the loan amount.
Real estate owned schedule. Lenders cross-reference this against your credit report to confirm all financed properties and their debt are accounted for, since undisclosed properties or debt can signal a problem.
Contingent liabilities. A guarantee on another borrower's large loan counts against you even if that loan is performing, since you could be called on to pay it.
Common mistakes
- Listing assets at purchase price rather than current value, or vice versa, when the form asks for one specifically.
- Forgetting to list contingent liabilities from guaranteeing a partner's or family member's loan.
- Omitting a property because it is titled in an LLC, when the lender wants beneficial ownership disclosed regardless of entity.
- Overstating illiquid asset values without support.
What supports the numbers
Most lenders want the statement backed by 2 months of bank and brokerage statements, and a schedule of real estate owned with addresses, values, and current loan balances for each property.
How often it needs updating
Most lenders want a personal financial statement dated within 90 days of application, and some request an updated one again closer to closing if the process runs long.
How CommFi handles it
Our lending desk reviews your personal financial statement before submission to catch common errors and omissions that slow underwriting. It funds direct when it fits, and when the desk searches a database of 7,000+ lenders, a complete and accurate statement moves your file faster through every one of them. Zero upfront fees.
Related reading
Related questions
- What is a personal financial statement?
- A form listing all your assets, liabilities, and resulting net worth, required by most commercial and SBA lenders from each significant owner of the borrowing entity.
- Who needs to complete a personal financial statement?
- Typically each individual or entity owning 20 to 25 percent or more of the borrower, since each usually personally guarantees the loan.
- What counts as a contingent liability?
- A guarantee you have signed on another loan, even one that is currently performing, since you could be called on to pay it.
- How current does my personal financial statement need to be?
- Most lenders want one dated within 90 days of application, sometimes refreshed again closer to closing.
- What documents support a personal financial statement?
- Typically 2 months of bank and brokerage statements and a schedule of real estate owned with values and current loan balances.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.