How Long Does It Take to Get a Small Business Loan?

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How Long Does It Take to Get a Small Business
Loan?
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What are SBA loans?
An SBA loan is one loan option for small
businesses that is partially guaranteed by the
U.S. Small Business Administration (SBA). These
loans are not funded by the SBA, rather, the SBA
guarantees a portion of the loan, so that they
are lower risk to SBA lenders and can qualify for
lower interest rates. In order to be approved for
an SBA loan, you must apply through one of the
SBA's preferred lenders. The SBA will guarantee
up to 75 of the total loan amount approved and
back loans up to 5 million.
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SBA loans are great for small businesses that
need capital for a variety of reasons, including
purchasing equipment or raw materials, payroll,
construction or improvements, real estate, debt
refinancing, or non-specified working capital.
They often come with an attractive low interest
rate, although there may be some restrictions on
the use of funds. Some of the different types of
SBA loans include
SBA 7(a) loan
The most common SBA loan is the SBA 7(a) loan. It
is similar to traditional term loans and can be
used to fund loans up to 5 million for working
capital, refinancing, equipment, and real estate.
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SBA microloans
The SBA guarantees microloans up to 50,000 for
working capital. The balance is required to be
repaid in a maximum of 6 years. These smaller
loans are best suited for startups and new
businesses.
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PPP loan
Paycheck Protection Program (PPP) Loans were made
possible by the CARES Act of 2020 to help
businesses recover from the pandemic. They are
low-interest, forgivable loans. The deadline for
applications was May 31, 2021, but any business
that was approved before then can still be funded.
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How long does it take to get a loan?
The SBA loan approval process can take longer
than traditional loans since SBA loans come with
strict rules for both the borrowers and the
lenders issuing the funds. That being said, there
is no concrete timeframe for SBA loans. Approval
time is determined by the type of loan and the
lender who is issuing the funds. However, an
approximate turnaround time for common SBA loans
is given below.
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• SBA Express loan 3 business days
• SBA 7(a) loan 5-10 business days
• PPP loan 10 business days
• EIDL loan 21 business days
• SBA microloan 1 month
• SBA 504 loan 1-30 months

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Tips to speed the loan process up
Speeding up the approval process of an SBA loan
can be tricky because of the additional
variables. There is a scramble to meet the needs
of the lender youve chosen to work with and the
requirements set by the SBA loan process.
However, choosing a lender that promises fast
delivery times on SBA loans is the first step.
Many lenders advertise as SBA preferred lenders,
but some handle more of these loans than others.
An SBA preferred lender will have the authority
to do the underwriting and credit checks in-house
without pre-approval from the SBA, which speeds
up the application process. This is information
youll want to inquire about while shopping
around for a lender.
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Alternative lenders
Alternative lenders are online lenders or private
companies that operate by lending funds to
individuals and small business owners. They are
independent of a large bank or financial
institutions underwriting process, and can
frequently speed up the loan process. Some of the
loans that may be offered by an alternative
lender include
Term Loans
A business term loan is the most common type of
commercial financing. They offer set repayment
terms and either a fixed or variable interest
rate. They are most similar to a traditional bank
loan, but with shorter terms and higher interest
rates.
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Business Line of Credit
Business lines of credit are a form of revolving
credit, like business credit cards. The borrower
can draw on the credit when they need capital and
then repay it with interest. Once the amount is
repaid it is made available for future capital
needs. Banks also offer lines of credit, but
small businesses will find shorter terms and
greater approval odds at an alternative lender.
Invoice Financing
Invoice financing allows a business to borrow
funds using their unpaid customer invoices as
collateral. The lender will approve a percentage
of the invoices and the remainder of the invoice
will be paid to the business when the customer
pays the amount owed.
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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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