Introduction: Why one small error can cost you weeks

I'm Beau Eckstein, Business Ownership Coach, and as the host of the Investor Financing Podcast I help entrepreneurs navigate the tricky world of financing acquisitions, expansions, and new ventures. On the Investor Financing Podcast I talk with lenders, brokers, and business owners every week, and one theme keeps coming up: simple mistakes on SBA loan applications delay approvals by weeks — sometimes by months. If you want to close faster and increase your odds of approval, this guide walks through the top mistakes I see, how to avoid them, and practical steps you can implement today.

As a Business Ownership Coach | Investor Financing Podcast host, I’ve seen underwriters pass over perfectly reasonable deals simply because the package wasn’t clear or the financials didn’t add up. Below I’ll break down the most common pitfalls and give you a checklist to tighten your submission so you look organized, credible, and ready to repay.

The single biggest mistake: Messing up Form 413

When I ask lenders what trips borrowers up most, the answer I hear over and over is Form 413 — the personal financial statement. People either don’t complete it fully, they mix personal and business liabilities, or the numbers simply don’t add up. Underwriters flag these inconsistencies immediately because they look for completeness and accuracy.

Common errors on Form 413 include:

• Leaving assets or liabilities blank or inconsistent with other documents.
• Listing business liabilities on a personal statement (they belong on business financials).
• Forgetting to sign and date the form — a seemingly small detail that forces the lender to pause and chase a borrower for a corrected document.

Fixing Form 413 is low-hanging fruit: take your time, verify totals, and cross-check figures with bank statements and tax returns. As a Business Ownership Coach | Investor Financing Podcast host, I always tell borrowers: treat this form like an application for trust — you are establishing credibility with someone who doesn’t yet know you.

Projections: Why monthly detail matters for the first two years

Lenders frequently ask for financial projections. The big mistake here is submitting only an annualized projection. Underwriters need month-by-month detail for at least the first 24 months. Why? Monthly projections reveal seasonality, cash-flow timing, and the realism of your assumptions.

Here’s what a strong projection package includes:

• Month-by-month revenue, cost of goods sold, and operating expenses for months 1–24.
• Reasonable assumptions and notes explaining how you derived revenue and expense items.
• Key metrics like gross margin, break-even month, and cash-flow runway highlighted for quick review.

Submit projections that are clear, conservative, and annotated. If your first-year cash flow shows a big loss, add a narrative that explains how you’ll bridge the gap or where the capital cushions come from. A well-constructed projection reduces the underwriter’s questions and speeds approval.

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Accuracy, signatures, and organized documentation

Accuracy matters. That means no handwritten scratch-outs, no unsigned pages, and no placeholders. If a form asks for net worth, provide it. If it asks for liabilities, do not omit them. Be methodical: create a secure folder (Dropbox, Google Drive, or an encrypted folder) and populate it with the exact documents the lender asks for.

When underwriters request additional information, respond quickly and completely. The borrower who provides requested items immediately typically closes faster. Think of it this way: the more efficient you are as a borrower, the more efficient the loan process will be.

Practical steps:

1. Create a dedicated loan folder with clearly labeled subfolders: financials, tax returns, projections, legal, and identification.
2. Scan documents as PDF (searchable where possible) and use consistent file names.
3. Sign and date every signed document. If a signature is missing, don’t assume the lender will accept it later — they will pause the file.

As a Business Ownership Coach | Investor Financing Podcast advisor, I recommend rehearsing document submissions: ask your broker or trusted advisor to review the folder before you send it. Catching mistakes early saves weeks.

How a broker helps you avoid common pitfalls

Working with a knowledgeable broker is not just about access to lenders — it’s about packaging. Brokers review your file before it reaches an underwriter. They identify weak spots, ask clarifying questions, and position your story so an underwriter in another state understands why your loan is a strong credit risk.

Examples of broker contributions:

• Catching unrealistic projections and suggesting adjustments.
• Rewriting business plan or resume bullets so the underwriter sees competence and repayment ability.
• Ensuring personal and business financials are consistent and properly presented.

Underwriters are human and they evaluate risk based on the package you send them. If a broker helps you tell a concise, credible story, your deal is more likely to sail through. As a Business Ownership Coach | Investor Financing Podcast host, I’ve seen brokers turn a borderline file into an approvable one simply by clarifying intent and plugging gaps.

Photo by Vitaly Gariev on Unsplash

Packaging your deal: what underwriters need to see

Remember: an underwriter in another state doesn’t know you. You must present a loan package that answers their core questions quickly: who are you, what will the loan fund, how will you repay, and what security exists? If you can convey that clearly, the underwriter will be far less likely to dig into secondary issues.

Key elements to emphasize in your package:

• Brief executive summary: loan purpose, loan amount, borrower background, and repayment sources.
• Clean financial documents, reconciled bank statements, and signed tax returns.
• Realistic projections with conservative assumptions and a short narrative explaining growth drivers.
• Personal financial statement (Form 413) that reconciles with other documents.

When the package reads well, bankers can process efficiently and approvals come faster. Being proactive — not reactive — changes the tone of the process from “we need more” to “this file is ready.”

Actionable checklist: avoid costly SBA loan mistakes

Use this checklist when assembling your SBA loan application. I recommend printing it and checking each item off before submission:

1. Complete Form 413 fully — assets, liabilities, and net worth reconcile with tax returns.
2. Provide month-by-month projections for at least 24 months with a written assumptions page.
3. Sign and date every required document — no exceptions.
4. Store documents in a secure, organized folder and name files consistently.
5. Respond to underwriter requests within 24–48 hours with complete documents.
6. Work with a broker or advisor to pre-check the package for inconsistencies and presentation improvements.

Following these steps will reduce back-and-forth and increase the probability of timely approval. As a Business Ownership Coach | Investor Financing Podcast host, I can say confidently: the borrowers who win are the ones who treat the loan package like a professional business deliverable.

Conclusion and next steps

SBA loans can be an excellent financing option for entrepreneurs — but the paperwork matters. Small mistakes cost time and may cost you the loan. If you take nothing else from this guide, remember three things: complete Form 413 accurately, provide detailed monthly projections for the first two years, and package your deal so an underwriter who doesn’t know you can immediately see repayment ability.

If you want help preparing your package, schedule a call with me at bookwithbeau.com. As a Business Ownership Coach | Investor Financing Podcast host, I work with borrowers and brokers to tighten files so you get approved faster and with fewer surprises.

Good luck — and get organized. The more professional your submission, the closer you are to closing.