Heads up SBA Lenders: Information Notice 5000-180009 issued July 24, 2018 announces an updated Personal Financial Information Statement Form 413 and the new form’s continued use through March 31, 2021. Updates include:

  • Change to the Certification field requiring certification from the spouse of any 20% or more owner if that spouse’s assets are also being considered
  • Privacy Act, debt collection, and debarment and suspension notices are revised to clarify standards for the use and disclosure of personal or confidential information and the eligibility requirements for financial assistance.
  • The burden disclosure statement on page 3 was amended to inform respondents that they may decline to respond if the form doesn’t display a valid OMB Control Number.

Important. As you know, SBA 50 10 5 (J) contains a provision allowing lenders to use “… their own equivalent form” in place of Form 413. See Subpart B, Chapter 6, 5. pgs. 214-215. If you choose to use Form 413, you should begin using the new form immediately. For in-process applications you may use the former version – for now. Yet within 60 days of the Information Notice (7/24/2018), using the new Form 413 will be mandatory.

To be considered. Although you’re not required to use SBA’s form, history has taught us:

  • Not all Lenders’ Personal Financial Statement forms require joint reporting and so won’t meet SBA’s requirement of joint disclosure of assets/liabilities, e.g., check-boxes that state individual and joint, and our borrowers choose individual.
  • Not all Lenders’ PFS forms consider certifications regarding joint assets
  • Not all Lenders’ PFS forms have instructions to include the assets of minor children

We recommend. Based on our experience with many lender clients over the years, we recommend using Form 413 to avoid any errors that could lead to denial of the guaranty on an early default loan down the road. Or make sure that your personal financial forms contain the required SBA information and certifications.

Rebecca Mendoza
Senior Associate