How long does it take to get an SBA loan? The answer depends on a few factors, but the process can generally be completed in a few weeks.
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The Small Business Administration (SBA) is a federal agency that provides support to small businesses and entrepreneurs. One way the SBA supports small businesses is by guaranteeing loans made by participating lenders.
SBA-guaranteed loans are made by banks, credit unions, and other financial institutions to eligible borrowers. The SBA does not make direct loans to small businesses.
Guaranteed loans can be used for a variety of purposes, including working capital, business acquisition, equipment purchases, real estate, and more.
So, how long does it take to get an SBA-guaranteed loan? The answer depends on a few factors, including the type of loan you’re applying for and the lender you’re working with.
The Application Process
The application process for an SBA loan can take some time, so it’s important to be prepared. The first step is to fill out an online application, which can be found on the SBA website. After you’ve submitted your application, a representative from the SBA will contact you to set up an appointment for a personal interview.
During the interview, you’ll be asked questions about your business and your financial situation. Be prepared to provide documentation of your income, expenses, and debts. The SBA representative will also run a credit check.
Once the interview is complete, it usually takes about two weeks for the SBA to make a decision on your loan application. If you’re approved, you’ll receive a loan package with all the details of your loan, including interest rates and repayment terms.
SBA 7(a) loans are the most common type of SBA loan . These loans can be used for working capital, to purchase equipment or real estate, or to refinance debt. The maximum loan amount is $5 million, with repayment terms of up to 25 years.
SBA 504 loans are available for the purchase of fixed assets, such as real estate or equipment, with a maximum loan amount of $5 million. Repayment terms are up to 20 years for real estate purchases and 10 years for equipment purchases.
The maximum loan amount for an SBA Express loan is $350,000, with repayment terms of up to 7 years.
After you have submitted your application, the SBA will review it and make a decision. If you are approved for an SBA loan, it can take up to 30 days for the loan to be funded.