How Long Does it Take for an SBA Loan to Be Funded?

If you’re considering applying for an SBA loan, you’re probably wondering how long the process will take. Here’s a look at the timeline for an SBA loan, from application to funding.

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The Small Business Administration (SBA) is a government agency that provides financial assistance to small businesses and entrepreneurs. One of the most popular programs is the SBA loan, which helps business owners secure funding for their businesses.

SBA loans are not like traditional bank loans, which can be approved or denied in a matter of days or weeks. The SBA loan process can take several months from start to finish. In this article, we’ll discuss how long it takes for an SBA loan to be funded and what factors can impact the timeline.

It typically takes 30-90 days for an SBA loan to be funded. However, the exact timeline will vary depending on the specific program and the lender. Some lenders may be able to fund an SBA loan in as little as 30 days, while others may take up to 90 days.

The SBA does not directly fund loans. Instead, they work with participating lenders, such as banks and credit unions, to give small businesses access to funding. When you apply for an SBA loan, your application will go through the chosen lender first.

The lender will then review your application and supporting documents before making a decision. If they decide to approve your loan, they’ll submit it to the SBA for final approval. The SBA will review your application again and make a decision within 60 days.

Once your loan is approved by both the lender and the SBA, funding will be disbursed to you according to the terms of your loan agreement. It’s important to note that some lenders may require collateral before they approve your loan. This means that you’ll need to have some assets (e., property or equipment) that can be used as security in case you default on your loan payments.

The amount of time it takes for an SBA loan to be funded can vary depending on the specific program and lender involved. However, it typically takes between 30-90 days from start to finish.

Types of SBA Loans

There are seven types of SBA loans, each with their own timeframes for approval and funding.

-SBA 7(a) Loans: These loans are the most popular type of SBA loan and can be used for a variety of purposes, including working capital, refinancing, equipment purchases, and franchise financing. The average SBA 7(a) loan takes between 30 and 90 days to fund.

-SBA 504 Loans: SBA 504 loans are designed for small business owners who want to purchase or improve commercial property. These loans can be used for things like renovations, expansions, or the purchase of new equipment or real estate. The average SBA 504 loan takes 45 to 60 days to fund.

-SBA Microloans: Microloans are smaller-sized loans that are typically under $50,000. They can be used for working capital, inventory or supplies, furniture or fixtures, and other business purposes. The average microloan takes 30 to 90 days to fund.

-SBA Bridge Loans: Bridge loans are short-term financing products that can be used to fill a financial gap until longer-term financing is secured. They are typically used when a business is waiting for approval on an SBA loan or another type of traditional bank loan. The average bridge loan takes 2 to 4 weeks to fund.

-SBA Economic Injury Disaster Loans (EIDLs): EIDLs are disaster relief loans that can be used by businesses who have suffered economic injury as a result of a declared disaster. They can be used for things like working capital, payroll expenses, and accounts receivable losses. The average EIDL takes 21 days to fund.

-SBA Express Loans: Express loans are streamlined versions of SBA 7(a) loans that offer faster approval times and quicker funding (usually within 36 hours). These loans can be used for working capital, equipment purchases, renovations, or other business purposes.

-Veterans Advantage Loans: Veterans Advantage Loans are designed specifically for veteran-owned businesses

The Application Process

The application process for an SBA loan can be lengthy, and it may take several weeks or even months to receive funding. However, the SBA offers a number of programs that can speed up the process, and some lenders may be able to fund your loan more quickly.

The first step in applying for an SBA loan is to fill out the loan application form. This form can be found on the SBA website, and it includes questions about your business, your financing needs, and your personal financial information. Once you have completed the form, you will need to submit it to the SBA for approval.

After your application has been approved, you will need to gather all of the required documents. These documents include financial statements, tax returns, and a business plan. Once you have gathered all of the required documents, you will need to submit them to the lender for review.

The lender will then determine whether or not you are eligible for an SBA loan. If you are eligible, the lender will send you a commitment letter outlining the terms of the loan. Once you have received the commitment letter, you will need to sign it and return it to the lender.

At this point, the lender will begin the process of funding your loan. Depending on the size of your loan and the availability of funds, this process can take anywhere from a few days to several weeks. Once your loan has been funded, you will be able to use the money to finance your business activities.

How Long Does it Take to Get an SBA Loan?

It can take anywhere from 30 to 90 days to get an SBA loan. The specific timeline varies depending on the type of loan you’re applying for and the lender you’re working with. The SBA guarantees a percentage of the loan, which gives lenders the security they need to fund small businesses. This guarantee makes the loan process a bit longer than it would be for a conventional loan, but it also makes loans easier to qualify for.


The average SBA loan is funded within 60-90 days, but the timeline can vary depending on the type of loan, the lender, and the borrower’s circumstances. Some loans may be funded quickly, while others may take several months. The best way to ensure a timely loan funding is to work closely with your lender and provide all requested information in a timely manner.

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