What this form is for
Banks and SBA lenders require a Personal Financial Statement when you apply for a business loan or guarantee personally. This document proves your personal ability to repay or backstop the loan by listing everything you own and owe outside the business.
Before you start
- Recent statements for all bank accounts, retirement accounts, brokerage accounts, and life insurance policies showing cash or surrender values
- Current mortgage statements and property tax bills for your primary residence and any investment real estate, plus recent assessed valuations or appraisals
- Titles and recent Kelly Blue Book or NADA valuations for all vehicles, boats, or recreational equipment you own
- Account numbers and current balances for all credit cards, personal loans, student loans, and any other debts in your name
- Documentation of other assets like business ownership interests, promissory notes owed to you, or valuable collections with estimated market value
Step-by-step
1. Complete the header section with your full legal name, home address, Social Security number, and date of the statement. If you are married and filing jointly with your spouse, include their information as well.
2. List all liquid assets first: cash in checking and savings accounts, money market funds, certificates of deposit, and publicly traded stocks or bonds. Use current market values dated within 30 days.
3. Document real estate holdings by address with current market value minus any liens. In Illinois, your primary residence equity counts but lenders typically discount it by 20 to 30 percent for liquidity purposes.
4. Itemize personal property including automobiles, retirement accounts like 401(k) or IRA balances, cash value life insurance, and other tangible assets worth over 1000 dollars individually.
5. Total all assets, then move to the liabilities section. List your primary mortgage first, then any second mortgages, home equity lines, auto loans, and credit card balances with the creditor name and monthly payment.
6. Include contingent liabilities such as any loans you have cosigned or business debts you personally guaranteed, even if the business is current on payments.
7. Calculate total liabilities, then subtract that number from total assets to arrive at your net worth figure. Double-check your math before signing.
8. Complete the income section showing annual salary, business income, investment income, and rental income. Attach your last two years of personal tax returns as supporting documentation.
9. Sign and date the statement under penalty of perjury, acknowledging that Illinois law allows lenders to verify all information provided.
What lenders look for
- Underwriters verify liquid assets first, so highlight cash reserves equal to at least three to six months of proposed loan payments to strengthen your application.
- Avoid common errors like listing retirement account balances without noting they are illiquid or overstating real estate values beyond recent appraisals, which triggers red flags during verification.
- Disclose all liabilities including tax debts or judgments, because Illinois credit reports and UCC searches will surface them anyway and omissions damage your credibility.