An SBA 7(a) loan may provide valuable working capital or help you refinance expensive debt. When you’re shopping for a lender, one important factor to consider is the timeline to funding. While SBA loans typically take longer to process than other types of business financing, their low rates, long terms, and manageable monthly payments generally make them worth the effort.
If you’re considering applying, understanding the process and knowing what to expect can help you move forward with confidence.
The SBA 7(a) loan is the most popular type of SBA loan. The SBA doesn’t issue these loans; instead, it guarantees a portion of the loans from participating lenders.
Because the Small Business Administration backs SBA loans, they typically offer longer repayment terms and lower monthly payments than many traditional small business loans.
The SBA loan process generally takes 60 to 90 days, though the exact timeframe depends on the lender and loan size. While this may seem lengthy compared to other types of financing, the benefits—such as lower interest rates and extended repayment terms—often outweigh the wait.
At SmartBiz®, the process is typically faster, with funding in as little as 30 to 45 days.
The most time-consuming part of the process is usually gathering the required documentation. Since SBA loans are government-backed, more paperwork is required to confirm a business’s financial health and repayment ability. Being organized and working with your accountant may help the process more smoothly.
Each business is unique, so there is no fixed timeline for applying and funding. However, an SBA loan application generally follows these steps:
Working with a lender with strong customer service and expertise in SBA loans can help make the process smoother. A knowledgeable lender can also guide you through document collection and answer questions to prevent unnecessary delays.
Each lender has slightly different eligibility criteria, but SBA7(a) loan applicants generally must meet these basic eligibility requirements:
Some lenders may require a business plan, while others do not. SmartBiz, for example, does not require a business plan, simplifying the application process.
Taking on small business debt—even at low rates—is a big decision. Consulting with a financial professional before moving forward is always a good idea. Here’s a quick look at the advantages and disadvantages of an SBA 7(a) loan.
Applying for an SBA 7(a) loan takes preparation. The best approach is to stay organized, set realistic expectations, and work with your accountant or financial professional to gather the necessary paperwork.
Before applying, confirm that you meet both SBA and lender-specific requirements. You don’t want to invest time if you don’t qualify.
Regardless of the lender, having the necessary documentation in order will help streamline the process. Expect to provide, at minimum:
Finding the right lender can make or break your SBA loan experience. Some banks have stricter requirements or longer processing times than others. Instead of applying to multiple lenders and risking unnecessary rejections, SmartBiz streamlines the process to help you secure the right funding for your business.
See if you prequalify by answering a few simple questions and get on the path to fast, easy, and transparent funding.
The SBA loan process may take two to three months from application submission to funding. However, a little preparation can make the process more efficient. Gathering your paperwork early and working with a lender specializing in SBA loans may increase your chances of a smooth approval.
While these loans may require more documentation than other financing options, SBA 7(a) loans are known as one of the best small business loan options available due to their low rates, long terms, and flexible use of funds. If you’re ready to take the next step, see if you prequalify today. The right SBA loan may set your business up for long-term success.