What Is the Time Frame to Receive an SBA Loan?
When it comes to any kind of loan, one of the first things on people’s minds is how long it is going to take to get the loan. With SBA loans, the timeframe varies from organization to organization. Some lenders may process your loan in 30 days, but this isn’t the average. Normally, it will take about two to three months to receive your SBA loan.
Be patient with the process. It does take time to complete. If you’re unsure of how long your specific loan will take, here is some more information on how long you may have to wait.
SBA Express Loans
An express loan is faster than a regular SBA loan. The application process is the fastest, allowing you to earn approval within 36 hours. The only downfall of an express loan is that this has a low maximum amount. You can’t request more than $350,000.
SBA Disaster Loans
The disaster loan involves a three-step process. You have to go through the application, the property verification and the loan closing and disbursement of funds. For the first and second steps, you can expect to wait about 4 weeks. Then, once you get to loan closing, it only takes about five days to receive the funds.
An SBA microloan is smaller than the average SBA loan. Due to this, your wait times are shorter. You can receive your microloan in about four weeks, on average. Now, when it comes to the initial process, the loan does have to be approved by an intermediary lender and the SBA, so that may take longer.
SBA 504 Loans
When it comes to SBA loans, the SBA 504 varies when it comes to the wait time. On average, you can expect to wait about 30-45 days from the time you submit your application until you receive funding. The approval itself, however, may take between one and six months. The 505 is dual approved by a CDC and an SBA.
SBA 7(a) Loans
The SBA 7(a) loan will take approximately two to three months for the lender to approve it. If you are working with an SBA preferred lender, then the process may go even quicker. Everything depends on your lender and the information you put into your application.
When it comes to SBA loans, the exact timing is always going to depend on you and your lender, not to mention the type of loan. While SBA loans may take longer than traditional business loans, they are often worth the wait.