If you're pursuing an SBA 7(a) loan to acquire a business, your Personal Financial Statement (PFS) and resume are doing more work than you might think. Here's how to get them right.
If you're pursuing an SBA 7(a) loan to acquire a business, your Personal Financial Statement (PFS) and resume are doing more work than you might think. Before a lender ever looks at the business you want to buy, they're underwriting you. These two documents need to prove you have both the capital and the operating chops to run a company successfully. Here's how to get them right.
PFS Do's
Do use the official SBA Form 413. Every SBA 7a loan processing bank requires this format, so start there instead of building your own template.
Do explain anything unusual. If you have complex or nonstandard assets, add a short written explanation. Unexplained line items are one of the most common PFS mistakes we see.
Do categorize your liquidity clearly. Separate your liquid cash (checking and savings) from semi liquid assets (brokerage accounts) and illiquid holdings (401k, IRA, home equity). Lenders use this breakdown to calculate your injection capacity, so make it easy for them to see.
Do disclose every liability. Mortgages, student loans, credit cards, all of it. Banks run hard credit checks, and any debt that shows up unannounced will hurt your credibility fast.
Do cross reference your cash totals. Whatever you report on your PFS should match your real, current bank and brokerage balances exactly.
Do show committed equity separately. If you're bringing in investors or family members for your equity injection, do not show committed co investor funds on the PFS.Money that has been provided to you directly as a gift or personal loan or grant (including EARL), you can include that in your personal funds.
Do line up a guarantor early if you need one. If your net worth is on the lighter side, find a personal guarantor or equity partner as soon as possible, and include their PFS alongside yours. If you’re a bETA Fellow, it can be a great idea to partner up with another Fellow to increase your optionality!
Resume Do's
Do lead with a search summary. Open with three sentences that spell out exactly what you're targeting. For example: "Targeting B2B light manufacturing or commercial services in the Midwest with $1M to $3M in EBITDA." This is a corporate operator profile, not a job application.
Do quantify your P&L experience. If you've managed a P&L, an operating budget, or department finances, put a real dollar figure next to it.
Do highlight people management. Include headcount for anyone you've supervised, hired, trained, or led, direct or indirect.
Do show cross functional range. Small businesses need generalists. If you have hands on experience across sales, marketing, operations, and finance, make sure it's visible.
Do feature deal or project execution. If you've worked in private equity, consulting, or corporate development, highlight the size of past transactions or the complexity of the projects you delivered.
The One Don't That Matters Most
Don't go through a standard retail bank branch. Applying online or walking into a local branch means you'll likely land with a loan officer who has never underwritten an ETA deal.
Instead, connect with New Majority Capital first. We'll get you in front of an SBA BDO who already knows our program, our searchers, and how these deals work. For bETA fellows, this step is required, and for good reason: it's the fastest path to a lender who will actually say yes.
Get your PFS and resume tight before you start reaching out, and you'll move through prequalification a lot faster.
To reach out to New Majority Capital, fill out our intake form here and we'll be in touch with next steps!
