How to Cancel Your SBA Loan Application
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You’ve decided that an SBA loan isn’t right for your business. Here’s how to cancel your application.
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Cancelling Your Loan Application
You may decide that you no longer want or need the loan for which you applied. You can cancel your loan application at any time prior to loan approval. To do so, simply write a letter to the Small Business Administration (SBA) notifying them of your decision and include the following information: your name, address, phone number, email address, the date you submitted your loan application, and the loan number.
Notify your loan officer
As soon as you decide to cancel your loan application, notify your loan officer so they can begin the process.
The sooner you let them know, the sooner they can cancel the application and stop the process. If you wait too long, it could delay the process for other applicants.
Return any funds you have received
If you have received any loan funds, you will need to return them to the lender as soon as possible. You should also notify the lender in writing that you are cancelling your loan application and returning the funds.
What Happens if You Cancel Your Loan Application
If you have applied for an SBA loan and decide that you no longer want the loan, you can cancel your application. However, there are a few things you should know before you cancel your application. First, you will need to notify the lender in writing that you would like to cancel your application. You should also return any money that the lender has given you. Finally, you will need to wait for the lender to process your request, which can take a few days.
Your loan fee will not be refunded
If you cancel your loan application after paying the fee, the SBA will not refund your fee.
You may be ineligible for future SBA loans
The SBA warns that if you cancel your loan application, you may be ineligible for future assistance from the agency. The SBA also notes that it cannot guarantee that your lender will not require repayment of any fees already paid.
