How long does an SBA loan take?

What does the SBA’s processing time cover?

The SBA publishes processing times only for its own review of loans that lenders send to it. That review is one step in a longer process:

Program	Who makes the credit decision	What sets the pace
Standard 7(a)	Preferred lenders approve loans themselves; other lenders send them to the SBA	The lender’s process, plus SBA review of about 5–10 business days when needed
7(a) Small Loan	Same as standard 7(a)	The lender’s process, plus SBA review of about 2–10 business days when needed
SBA Express	The lender, under its Express authority	The lender’s process; the SBA publishes no turnaround time
SBA 504	A bank for its loan, and a CDC with SBA approval for the CDC portion	Two lenders’ reviews, closing, and completion of the project before the debenture funds

The SBA’s clock doesn’t include the time you spend gathering documents, the lender’s underwriting, third-party reports such as appraisals, or closing. That’s why there’s no official timeline from application to funding, and why two borrowers using the same program can have very different experiences.

Does a Preferred lender make an SBA loan faster?

It can. Lenders in the SBA’s Preferred Lenders Program (PLP) have delegated authority to approve 7(a) loans themselves, without sending them to the SBA for review. That removes a step, and it usually means the lender makes SBA loans often enough to have a well-practiced process.

Lenders without delegated authority send each loan to the SBA, which adds about 5–10 business days for a standard 7(a) loan or 2–10 business days for a 7(a) Small Loan. Even Preferred lenders may send some loans to the SBA, such as those with unusual eligibility questions. You can ask a lender directly whether it has Preferred status and whether it expects to approve your loan under delegated authority.

Delegated authority isn’t everything. A non-delegated lender with your complete package can still move quickly, and a Preferred lender with a backlog may not. Ask each lender how long recent loans like yours took from application to closing.

How long does an SBA Express loan take?

SBA Express lenders make the credit decision themselves, so there’s no SBA review step. The SBA doesn’t publish an official turnaround time for Express loans, so speed depends on the lender, the loan and how complete your application is.

Express loans go up to $500,000 in exchange for a smaller SBA guarantee of 50%. A fast decision doesn’t skip closing: you still sign loan documents, and loans secured by real estate still need appraisal and title work.

How long does an SBA 504 loan take?

A 504 loan has more moving parts than a 7(a) loan, so it often takes longer from start to finish:

• Two lenders. A bank underwrites its own loan, and a Certified Development Company (CDC) underwrites the SBA-backed portion. The CDC submits its portion to the SBA for approval unless it has delegated authority.
• Interim financing. Projects usually close on the bank loan and an interim loan covering the CDC’s share, so you can buy the property or start construction.
• Debenture funding after completion. The CDC portion is funded by a debenture that the SBA sells to investors only after the project is complete. With construction, that means after the build is finished.

What matters most to you is usually when you can close and move in, which happens on the interim loan, not when the debenture sells. Choosing a bank and a CDC that regularly work together can make that coordination smoother. See SBA 7(a) vs 504 to compare the two programs.

What takes the most time in an SBA loan?

Most delays come from steps outside the SBA’s review:

• Gathering documents. Tax returns, year-to-date financial statements, a business debt schedule, a personal financial statement for each owner and, for newer businesses, projections. Missing or inconsistent documents cause much of the back-and-forth.
• Tax return verification. Lenders verify your returns with the IRS, which can take longer when returns were recently filed or amended.
• Appraisals and valuations. Real estate and equipment appraisals and, for business purchases above $350,000, an independent business valuation. Purchase prices of $3 million or more also need a Quality of Earnings report.
• Environmental reviews. When commercial real estate is involved, lenders follow SBA environmental requirements. A records review may be enough, but some properties, such as gas stations and dry cleaners, need a fuller environmental site assessment, and findings can lead to more testing.
• Title, surveys and insurance. Title searches and title insurance, sometimes a survey, and the insurance policies the lender requires.
• Construction. Projects that build or renovate release money in stages as work is completed and inspected.
• Other parties. Sellers, landlords, franchisors and existing lenders all have documents to provide, from landlord consents to payoff letters.

Many of these steps can overlap. A lender that orders reports while underwriting is still under way can shorten the process considerably compared with one that waits for each step to finish.

How can you speed up your SBA loan?

1. Submit a complete package. Use our SBA loan documents checklist and review the SBA loan requirements before you apply, so underwriting can start right away.
2. Choose an experienced lender. A lender that regularly makes loans like yours, in your industry and at your loan size, knows what to ask for up front. Preferred lenders can also skip SBA review.
3. Start third-party reports early. Ask the lender to order appraisals, valuations and environmental reviews as soon as it’s comfortable with your request. Some lenders will order them before final approval if you agree to pay for them.
4. Answer follow-up questions quickly. Name one person to handle lender requests, and reply the same day when you can.
5. Clear up problems before you apply. Fix credit report errors, file any missing tax returns and resolve tax liens or ownership questions first, since they can stall underwriting.
6. Line up your equity. Keep your down payment in an account you can document with statements, and avoid unexplained transfers. See SBA loan down payments.
7. Start closing items early. Request insurance quotes, landlord consents and payoff letters as soon as the lender approves your loan, so closing isn’t waiting on them.

How do you find the right lender for your SBA loan?

How long your loan takes depends heavily on the lender. Lenders that regularly fund loans like yours tend to know what they need up front, which usually means fewer surprises in underwriting and closing.

SBA Loan Connect ranks lenders using the SBA’s public 7(a) and 504 loan records, so you can see which lenders actually fund businesses like yours before you apply. Partner lenders are labeled. It’s free, and there’s no credit check. See how we rank lenders or get matched with lenders.