What is the average length of an sba loan

Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place. We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America! All Rights Reserved. Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author.

If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes. On average, the loans take around days from application to funding. Approval time can, however, take anywhere from one to six months.

The timeline relies heavily on the borrower and their specific needs. Receiving a microloan can take anywhere between 30 and 90 days. Your application must be approved by both an intermediary lender and the SBA, so patience is key when waiting on a microloan.

The SBA states that the first and second step takes an average of four weeks. Step 3 takes around five days for borrowers to receive funds. Are Express loans actually faster than regular SBA loans? In short, yes. However, the approval from the partnered bank could take several weeks, which means that the total time to funding could be one to two months , depending on the lender.

Still, this is at least a month faster than most other SBA loans. As with other SBA loans, you will also need to prepare a comprehensive loan application package to apply for the Express loan. This process, of course, will take some time, though Express loans require fewer documents compared to a 7 a loan. Most SBA loans will require a lot of documentation and verification , which makes the process quite lengthy.

Because the loan is a dual-approval process, it can take even longer. From there, the SBA will match you with possible lenders with whom you can discuss SBA loan rates and terms and formally apply for their loan. These in-depth applications do take time to fill out. Once the application is completed, the documents must be reviewed by multiple sets of eyes, which makes the waiting periods lengthy. Formal underwriting for an SBA loan usually takes about two to three weeks.

This time allows either your underwriting team or loan officer to discuss any questions or concerns they may have about your loan. During this time, you may be asked to participate in more meetings to discuss your plans or even to fill out more paperwork.

The underwriting period can take longer if the SBA requests extra documentation. The timeframe can vary depending on the type of loan and your particular case. Be sure to ask your lender how long it takes for approved funds to get disbursed. In comparison to other business loans, this is quite a lengthy process. When applying for a traditional business loan at a bank, you can expect to get an answer within only two to four weeks.

An even faster option is an online business loan. Online resources, although more expensive than an SBA or a bank loan, boast short applications that take minutes and can provide funding within as little as 24 hours. Instead, you should seek out an alternative loan—such as an online short-term loan. However, if you can reasonably wait up to a few months to get funded, then it is absolutely worth waiting for an SBA loan. If you decide to proceed with an SBA loan, but still want to get your cash as soon as possible, be sure to fill out your SBA paperwork and preliminary applications as accurately and completely as you are able.

This is your best bet of getting a fast response from the SBA. The less the SBA has to do to get information from you, the better your experience will be. Of course, a speedy SBA loan approval time is never a guarantee, even if you do have all your documents in order. If you truly need to know your funds will be here sooner than later, you can check out these resources for small business owners:.

The rise of fintech has introduced a segment of online lenders — like Funding Circle — that are designed to deliver speedy business loans in a fraction of the time it takes the government agency. Jessica Holcomb is the Content Marketing Manager at Funding Circle, specializing in small business marketing and social media. She has a degree from the Fashion Institute of Design and Merchandising. Prior to Funding Circle, Jessica was a Marketing Manager at a successful social games company and a freelancer for many small businesses in the Bay Area.

Her work can be seen in top retail, gaming, and financial small business resource sites. Why wait for the longer SBA loan processing time? How long does it take to get an SBA 7 a loan? How long does it take to get an SBA Express loan? How long does SBA microloan approval take? Apply now. Sign up for Funding Circle newsletter! Get our latest news and information on business finance, management and growth. Great Review:.