You’ve probably heard of SBA 7(a) loans as one of the most affordable, long-term financing options out there for your small business. When it comes to applying, being prepared for the process will help you move quicker from start to funded. Here’s what you need to know about the turnaround time for an SBA loan.
What is an SBA 7(a) loan?
7(a) loans are the most popular financing program offered by the Small Business Administration, a government agency. These loans are not made directly by the SBA. Instead the SBA guarantees a portion of the loan amount to preferred lenders that provide these loans . With a majority of the loan amount backed by the government, the bank faces less risk while the borrower benefits from more favorable rates and terms.
Think an SBA 7(a) loan might be a good fit for your business? Check out our eligibility requirements and get started with SmartBiz Advisor today to learn where you stand based on the key metrics our lenders use to evaluate your business. You’ll find personalized insights and recommendations that will help you strengthen your lending profile and ensure that your unique business is ready to apply for the funds you deserve.
Application and approval process
Most of the SBA loan application is put together by the borrower. Different banks will have slightly different requirements, on top of the documentation that’s collected for the SBA. They’ll use metrics to evaluate the financial health of your business and ensure that you’re a good fit for an SBA loan. At SmartBiz, our streamlined, online application gives you the flexibility to work on your own terms: anywhere, anytime. We’ll save your progress and support you as you go through the process. Then, we’ll connect you with the lending partner who can provide the best fit for your unique business situation.
Some of the most commonly collected documents include personal and business tax returns, personal financial statements, and a Profit and Loss (or income) statement. Learn more about how we make the process more efficient.
Adding it all up
From qualifying to moving through the application to being approved for funding, the turnaround time for an SBA 7(a) loan will mostly depend on how prepared you are to provide financial documents and answer any questions that may arise.
Even still, some elements of the process can take longer than others. For example, you might have to spend some time working with an accountant to gather specific paperwork or adjusting to your lender’s timeline. In the case that your application isn’t approved, you’ll usually have to start a new one with a different bank.
SmartBiz takes the guesswork out of SBA lending: using our online marketplace of several bank partners, you only need to submit one application and we’ll match you with the lender most likely to fund your unique business. That’s why about 90% of the loans we refer to our bank partners get approved.
Speeding up the process
The traditional SBA loan application process can take several months of hard work and still end with a “no”. But by choosing SmartBiz, you’ll be on your way to accelerating the time it takes to get the funds you deserve. We reduce the confusion and difficulty while increasing the likelihood of getting to a “yes”. Our team is committed to transparency, efficiency, and 5-star service. Once your application is approved by one of our trusted bank partners, funds can be deposited into your bank account in as fast as 7 days.
Start your SmartBiz journey and apply for an SBA 7(a) loan today.
Have any questions? Call us at 1.866.283.8726 to speak with a Loan Specialist.
* The information provided through SmartBiz Advisor, including the Loan Ready Score, is for educational purposes and is not the same as scores used by lenders for credit decisions. SmartBiz Advisor is not a financial or legal advisor as defined under federal or state law. Use of this information is not a replacement for personal, professional advice or assistance regarding your finances or credit history.