Small Business Administration or SBA loans are valuable financial tools for small businesses that need funding. These small business loans come in different forms, including SBA 7a (the most popular) and SBA express (emergency loans).
Although SBA express loans are for emergencies, they do not process as fast as the SBA’s Paycheck Protection Program (PPP). PPP loans can take around 36 hours to process, making them ideal for businesses in true emergencies.
SBA loans can take at least 30 days to a few months to get, requiring preparation. Be sure to have all your SBA forms and documents in place when applying for this loan.
SBA 7a Loan Timeline
Expect between two and three months of turnaround time when applying for this SBA loan. An SBA 7a loan is SBA’s most popular product because of the flexibility that you have with its proceeds.
The most you can borrow with this loan is $5 million. You can use the proceeds for refinancing debt, buying equipment, or working capital. The time it takes to get the loan will depend on you and your lender.
On your end, you must gather the necessary documents to ensure that your SBA loan application runs smoothly. Use the SBA 7a loan application checklist to track your files. Meanwhile, your lender’s internal processes may also affect how long you get your loan.
SBA 504 Loan Timeline
Most people getting an SBA 504 loan wait for six months before their loan processes completely. Ideally, you should only wait between a month and a month and a half upon completing your application.
SBA 504 loans can take up to six months because of the two layers of its approval process. The SBA works with its partner, the Certified Development Companies (CDC). Therefore, loan approval times vary.
SBA Express Loan Timeline
Express loans can take one or two months in total processing time. The SBA says it can take about 36 hours of turnaround time. However, the SBA does not consider the approval time your lender might take for your loan. Depending on your lender, you might need a few more weeks before approval.
SBA Express Loans are compact versions of 7a loans. The SBA Express Program offers emergency funding of up to $350,000 in faster approval times than SBA 7a loans. This type of SBA loan is ideal for borrowers in immediate need of financial assistance.
SBA Disaster Loan Timeline
SBA Economic Injury Disaster Loans are direct responses to the COVID-19 pandemic. Once you apply for an SBA EIDL loan, expect between two and three weeks for approval and another five days for disbursement.
The approval timeline can depend on the volume of applicants at the time of your application. The SBA assigns individual loan officers to borrowers when servicing SBA EIDL loans.
Why SBA Loan Processes Take Long
Business owners can borrow up to $5.5 million in SBA loans and are long-term in nature. These benefits require intense processes to ensure everything is in place, extending the processing time to months. Consider seeking short-term demands while planning for your long-term SBA loans if you need immediate financing. Clarifi can help you fund in as little as 24 hours!