The typical turnaround time for an SBA loan is generally in the range of 2 to 3 months, although it’s possible to have everything wrapped up in less time than that.
The reason it takes so long is because a great deal of paperwork has to be waded through, and because borrowers must be carefully vetted before being approved. You also need to prepare all the documents required by the government, and to meet with potential lenders, before things really get moving along.
You can shorten the time of this whole process by being very precise on your applications, and by adequately preparing your documentation.
Approval time for various SBA loans
An SBA 7(a) loan will generally take between two and three months before it finally results in approval. This time can be shortened considerably by working with an SBA Preferred Lender, although it will still depend on the specific lender and how well prepared you are. An SBA 504 loan can be approved in as little as 30 days, or it might take up to six months. The reason for this it involves both the SBA and a CDC, which means there are a lot more variables which require consideration. The timeline for approval usually depends a great deal on the specific needs of the borrower.
An SBA micro loan involves smaller amounts of money, so the approval timeline is generally much quicker, often no more than 30 days. It still requires approval by the SBA and an intermediary lender, so even this lesser amount of money will require a certain amount of patience before being approved. SBA disaster loans require three steps before you can be approved for funding: your application, a property verification decision, and the actual loan closing, prior to disbursement of any funds. The first two parts of this process will generally take up to four weeks, and then the third step will take about five days before a borrower actually receives funding.
Are you applying for an SBA loan?
Our company has often worked with the government on SBA loans, and we’ll be glad to work with your company as well. Contact us at Proactive Funding Solutions so we can discuss favorable terms available to you on your SBA loan.