How Long Does It Take to Get a 7 (a) SBA Loan?
How long does an SBA loan take to close? That’s a common question that every business owner who wants to get an SBA loan asks.
On average, an SBA 7(a) loan takes about 60 to 90 days to close and fund from the time you apply and supply the required documents to the bank. Generally, community banks fund the loan which is guaranteed by the US Government. At this time the maximum loan 7(a) loan amount $5,000,000.
If you need more funding USDA loans, up to $25,000,000 maybe available if you are located in a USDA eligible address. Click here and enter your address to see if you are located in an eligible area.
Some borrowers move through the process relatively quickly, while others may take much longer depending on the lender(community bank) and how quickly required documents are submitted to the bank.
In fact, industry surveys show that incomplete or incorrect paperwork is the number one cause of delays, slowing down more than half of all 7(a)l SBA applications. If you operage a business you know how critical timing is.
Factors That Influence SBA Loan Timelines
So, why does one borrower get funded relatively quickly while another waits months?
The truth is, several moving parts affect how fast your SBA loan moves from application to approval. Here are the biggest ones to keep in mind:
1. Lender Experience
The lender you choose makes a big difference. A bank that regularly processes 7(a) SBA loans regularly knows the system inside out.
Even better are Preferred Lenders (PLP), who have authority from the SBA to approve loans in-house. That means less back-and-forth conferring with the SBA and a shorter wait for you.
2. Borrower Preparedness
This is where many delays happen. If you can hand over a complete, organized package of financials, tax returns, business plans, and supporting documents up front, the process goes far smoother.
Missing or outdated records are one of the biggest reasons applications get stuck in limbo.
3. Business Complexity
The more complex your deal, the longer the review. Startups or industries seen as high-risk may face extra questions. Real estate deals need appraisals and inspections, which add time.
And if you’re requesting a large loan amount, expect deeper scrutiny compared to a smaller working capital loan.
4. SBA Workload & Economic Climate
Finally, sometimes it’s just about timing. During recessions or crises, like the surge in applications during the COVID-19 pandemic, the SBA and lenders are simply busier. That extra workload can mean longer queues and slower approvals.
SBA Loan Process Step-by-Step
Getting an SBA loan may seem complex, but it becomes much easier when you know what to expect. Here’s a clear breakdown of the key steps in the process so you can follow along with confidence.
1. Prequalification (1–2 Weeks)
Most lenders start by reviewing your business basics: credit score, revenue, years in operation, and purpose of the loan. This step helps determine if you’re eligible before diving into paperwork.
If your financials are organized, this step can take as little as a few days. But if documents are missing, expect delays.
2. Application Preparation (2–3 Weeks)
This is usually the most time-consuming part for borrowers. You’ll need to provide:
Personal and business tax returns (2–3 years)
Profit and loss statements
Balance sheets
Bank statements
Business licenses
Resumes of owners
A solid business plan (for startups or expansion loans)
If you’ve already organized your documents, you can move through this phase quickly. Otherwise, gathering and double-checking everything may take several weeks.
3. Lender Review (2–3 Weeks)
Once your application is submitted, the lender conducts a deep dive. They’ll analyze your creditworthiness, repayment ability, and business viability.
This review may include:
Personal credit check
Business credit history
Debt-to-income ratios
Collateral assessment (if required)
4. Closing & Funding (1–2 Weeks)
Once approved, loan documents must be signed, collateral finalized, and funds disbursed. For real estate loans, this can take longer because of property appraisals, environmental reports, and title checks.
How to Speed Up the SBA Loan Process?
Choose the Right Lender – Work with SBA Preferred Lenders who can make faster decisions.
Stay Organized – Have your financial statements, tax returns, and business plan ready before applying.
Respond Quickly – Answer lender questions immediately to avoid unnecessary delays.
Work with an Advisor – Accountants or SBA consultants can help prepare your documents correctly the first time.
Frequently Asked Questions (FAQs)
What is the acceptance rate for SBA loans?
SBA loans are more accessible than traditional bank loans, but they’re still competitive. Approval rates vary by lender and year, but historically, around 50–60% of SBA 7(a) loan applications are approved.
How much down payment is required for an SBA loan?
Most SBA loans require 10% down, though some lenders may ask for up to 20% depending on the type of loan and business risk profile.
How long do I have to be in business to get an SBA loan?
There’s no strict minimum, but most lenders prefer at least 2 years in operation. Startups can qualify if the owners have strong credit, industry experience, and a solid business plan.
Final Thoughts
So, how long does it take to get an SBA loan?
The truth is: it depends. On average, most 7(a) borrowers receive funding in two to three months. If you’re planning a major investment in your business, start early, get your paperwork in order, and work with an experienced SBA consultant to ensure a smoother and faster journey to funding.
Need help with getting faster SBA approval? Contact SBA Funding Depot! Fill out the form today!