SBA Loan Approval Timeline|How long do SBA loans take?

While there are parts of the process that can take more time, a lot of the SBA loan approval timeline depends on the borrower. There are a lot of forms and documents that need to be put together before a bank can give an approval or send the loan to underwriting. Banks that specialize in SBA lending can often move very quickly if the borrower has everything in order.

 

Small Business Loan Approval Process

With less risk for the bank and more favorable terms, the SBA loan program is aimed at borrowers that don't fit the mold for a normal bank loan.

SBA 7(a) loans are granted by a bank, but guaranteed by the Small Business Administration. This means the SBA will pay for part of the loan (75%-85%) if the borrower defaults. This loan program allows the bank lenders to take less risk when giving credit to borrowers. SBA 7(a) loans have longer term lengths and lower interest rates than typical bank financing. 

SBA 7(a) loans have several uses, including:

How long is the SBA loan approval timeline?

There are several steps in the loan approval process:

What can I do to speed up the process?

There are a few ways to expedite this process. Usually, a large portion of the SBA loan approval timeline is taken up by the borrower getting all the documentation prepared. Preparing all of this ahead of time is the biggest time-saver for the SBA loan processing time

The longer the bank has to wait, the slower they'll move overall. Using an SBA preferred lending partner can also help. These banks don't have to get approval from the SBA, but instead have been vetted by the SBA to make credit approval decisions on their behalf. Also, working with banks that specialize in SBA loans or advisors that help borrowers get through the process can also help move the SBA loan approval timeline forward.

Claris Finance can walk you through the SBA loan process and help speed up the approval timeline. To learn more about Claris, contact us today! 

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Sources:
Small Business Association: https://www.sba.gov/

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