You can take out an SBA loan for a maximum of $5 million, but how long does it take to get SBA loan after approval?
In order to secure the funding for your small business, there are many more factors to consider.
If you want to make sure that your business can succeed, keep reading to learn all you need to know about all the SBA loan requirements.
How Long Does It Take to Get SBA Loan After Approval?
There might be some situations where you can’t wait long to get an SBA loan. In some cases where you need emergency funding, there is an SBA Express Program.
This will help speed up the process, but you’ll only be able to borrow up to $350,000. For express loans, the turnaround time is around thirty-six hours.
For regular SBA loans, a bank will normally approve them between sixty and ninety days.
How Long Does a Microloan Take?
If you need to get a loan that will go even faster, you can even apply for a microloan. These are smaller amounts, and you can only take out $50,000.
However, you could have funds within just a month. If there is an influx in people taking these microloans, it could take up to two to three months to approve this loan.
One reason it could take so long is that these loans aren’t very straightforward. They’ll have to go through an intermediary lender to get a discount, and then they’ll need to get authority approval for these loans.
How the Approval Process Works
When you want to apply for an SBA loan through this bank, you’ll need to gather all of the right documentation.
Then, you can submit your loan, and this process will take anywhere between one day and a month. Once the bank receives your application, they’ll underwrite the loan, which could take between ten to fourteen days.
The next step is deciding whether or not to approve the loan. If they do approve the loan, you’ll get a commitment letter. It could take up to twenty-one days to receive this letter.
The Final Step
The final step in the process is the closing. This is when the bank will take care of everything, sign all the documents, and make sure that all of the paperwork is in order.
The SBA will give you a file number for your loan and work with the government to guarantee it as well. This step can take between one to two weeks, and then the funds will be transferred into your bank account for your business.
You can then use the funds as soon as you want.
Learn More About How to Get SBA Loan
How long does it take to get an SBA loan after approval? It won’t be long once you’re finally approved, but the approval process is normally the longest step.
We know that running a business can be stressful, but we’re here to help you out.
If you are interested in more information to help you run your business, check out our website!