Personal financial statement walkthrough

If you personally guarantee a business loan, your lender will ask for a personal financial statement. This walkthrough explains each section in plain English, from assets and liabilities to contingent liabilities and the real estate schedule, and lists the mistakes that most often slow things down.

Reviewed October 1, 2026 by Brandon Chiesa, a Central Virginia business banker with 15+ years of experience.

This page explains the sections. It does not reproduce the form. Get the current SBA Form 413 from SBA.gov (effective February 13, 2025, as checked October 1, 2026), or use your lender's own form.

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What a PFS is

A personal financial statement is a snapshot of what you own, what you owe, and what you earn, as of a specific date. Lenders use it for the people who will stand behind a business loan. Each owner of 20 percent or more is commonly asked to complete one.

Before you start, gather these

Bank, brokerage, and retirement statements.
Mortgage, auto, student loan, line of credit, and credit card statements.
A tax assessment or appraisal for real estate you own.
Life insurance cash surrender value, not the death benefit.
Your latest personal tax return, and a list of loans you have guaranteed.

Assets

List personal cash, retirement balances, marketable securities at today's value, cash surrender value of life insurance, and a supportable value for real estate and vehicles. Business cash and equipment stay on the business balance sheet. Do not list the face amount of a life insurance policy as an asset.

Liabilities

Include mortgages, installment loans, lines of credit, credit cards, unpaid taxes, and loans against life insurance. Credit cards and home equity lines are the items people most often leave off. Net worth is total assets minus total liabilities. Recheck the arithmetic.

Contingent liabilities

These are amounts you might have to pay if something else goes wrong. List every personal guarantee, including your own business's loans and leases, plus lawsuits, judgments, and taxes you expect to owe.

Income

Use annual amounts that match your tax return: salary, investment income, real estate income, and other income with the source named. If this year is very different, add a short note.

Real estate schedule

For each property, give the address, purchase date, original cost, present value, mortgage holder, balance, monthly payment, and whether the mortgage is current. If an LLC or other people own it with you, show your share. Rental property on Schedule E belongs here too.

Common mistakes

Listing life insurance face value instead of cash surrender value.
Forgetting personal guarantees, credit cards, or a home equity line.
Using a hopeful listing price instead of a supportable value.
Totals that do not add up, a stale date, or a blank section instead of "none".
Forgetting to sign and date it.

How to use

Gather the statements listed on page 1.
Get your lender's PFS form or the current SBA Form 413 from SBA.gov, and follow along section by section.
Check your work against the common mistakes list before you sign and date it.

Estimates for education only. Not an offer of credit or a promise of approval. Actual terms depend on the lender and credit approval. Not affiliated with any employer. Read the full disclaimer.