It can take 30 to 90 days to get an SBA loan from application to funding. The specific timeline is impacted by factors such as:
Your lender and loan type.
How you plan to use the funds.
How complete your application is.
How quickly paperwork moves between you and your lender.
Because SBA loans are backed by the U.S. Small Business Administration, the application and underwriting process is often more time-consuming compared with other business loans.
How much do you need?
SBA loan timelines by loan type
Standard SBA 7(a) loans. The SBA’s own review can take five to 10 business days, on top of the lender’s underwriting. The total time is often 60 to 90 days. If you work with a Preferred Lender, the process is usually faster. These lenders can approve loans without the SBA’s review.
SBA Express loans. Once your application is complete, lenders can decide in as little as one day. The whole process often takes about a month (but can be faster).
SBA 504 loans. These loans can take 60 to 90 days (or longer) because a certified development company, a bank and appraisals are all involved.
SBA microloans. These loans are processed and issued by nonprofit intermediaries. Timelines vary by intermediary, but can range anywhere from seven to 30 days.
How long each step of the SBA loan process takes
Here’s a timeline of what you can expect from a typical SBA loan application process:
Application
Time: Up to 30 days, but varies by applicant.
Before you start your SBA loan application, make sure that your business qualifies. You’ll need to meet the SBA’s and your lender’s requirements.
Then, gather your documents to complete the application. Tom Pretty, head of SBA lending at TD Bank U.S., recommends preparing three years of personal and business tax returns, a personal financial statement (you can use SBA Form 413) and a business debt schedule.
Underwriting and approval
Time: Up to 21 days.
Once you submit your application, it enters underwriting. Your lender checks your credit and reviews your financial statements and projections to decide whether to approve your loan and how likely you are to repay it.
If you’re offering SBA loan collateral, the lender may also order appraisals and, for real estate, environmental reports.
During this process, the lender also sets your loan amount, repayment term and interest rate.
If your lender isn’t in the SBA Preferred Lenders Program, the lender underwrites your loan and then sends it to the SBA for a separate eligibility and credit review. This review can add five to 10 business days to your timeline.
If you are working with a Preferred Lender or Express Lender, on the other hand, it can approve your application without SBA review.
Once you’re approved, your lender will draft and send your loan documents, including a formal commitment letter. This letter will contain the terms and conditions of your loan.
Closing
Time: Typically seven to 14 days.
After you’ve signed your commitment letter, your lender will send the loan into closing.
During this period, your lender will reach out about any issues, and may request additional documents such as proof of insurance and statements to confirm your down payment.
From application to closing, Express loans typically take about 30 days and 7(a) and 504 loans about 45 days, according to Pretty. Borrowers who have their documents ready and respond quickly can close faster, he says.
🤓 Nerdy Tip
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Factors that affect SBA loan timelines
Several factors impact SBA loan processing time. They include:
Lender and loan type
Your lender and the type of SBA loan determine who needs to review your application, and each additional party can add time.
SBA Preferred Lenders can approve 7(a) loans without a separate SBA review, so they can usually process applications faster than lenders that aren’t in the program. Lenders with SBA Express authority can also approve loans on their own — one of the reasons they tend to fund faster than other options.
SBA 504 loans, on the other hand, involve certified development companies and a third-party lender, such as a bank. The loans are used to finance real estate and major equipment, which often require appraisals and environmental reports that add time.
Because SBA microloans are managed entirely by nonprofit intermediaries, timelines depend on their individual processes.
Loan purpose
How you plan to use the funds affects how much paperwork and review your loan needs.
A working capital loan, for example, requires much less documentation than a business acquisition or commercial real estate loan — which often need third-party reports like appraisals and business valuations. These reports can slow down the process.
Construction loans tend to be one of the slowest, says Pretty, because you need a signed contract from your builder and approvals from local authorities.
Credit issues and incomplete disclosures
Red flags on your credit report, outstanding liens or judgments and even past bankruptcies are not necessarily dealbreakers when applying for an SBA loan.
You should let your lender know about any financial issues upfront, however, so they don’t cause additional delays during underwriting. Your lender may be able to help you mitigate some of those issues before you move on in the process, or at the very least, adjust your expectations moving forward.
How to speed up your SBA loan
You may not be able to control every piece of the SBA loan process, but there are some actions you can take to speed things up:
Choose an SBA preferred lender (Compare top options with our guide here).
Have documents (tax returns, financial statements, debt schedule) ready before you apply.
Disclose any credit problems to your lender upfront.
For real estate deals, ask your lender to order appraisals and environmental reports early.
Respond promptly to lender questions and requests throughout underwriting.
If speed is your top priority, consider an SBA Express loan. For even faster funding, look into alternative options, like online business loans.
Article sources
- 1.U.S. Small Business Administration. SOP 50 10 Lender and Development Company Loan Programs.
