If its an emergency and you need funds in less than three months or your business will not survive, then the long SBA loan approval time will probably be a dealbreaker. Instead, you should seek out an alternative loan-such as an online short-term loan. However, if you can reasonably wait up to a few months to get funded, then it is absolutely worth waiting for an SBA loan. You wont be able to get as good of a rate outside of the SBA.
If you decide to proceed with an SBA loan, but still want to get your cash as soon as possible, be sure to fill out your SBA paperwork and preliminary applications as accurately and completely as you are able. This is your best bet of getting a fast response from the SBA. The less the SBA has to do to get information from you, the better your experience will be.
Of course, a speedy SBA loan approval time is never a guarantee, even if you do have all your documents in order. If you truly need to know your funds will be here sooner than later, you can check out these resources for small business owners:
The best place to check the status of your SBA loan will depend on the type of loan youre getting and how you applied. You might be able to check via an SBA online portal, by calling the SBA, or by signing into an online portal or calling the loan intermediary or lender you have been working with.
SBA loans take a long time to be approved because they have a americashpaydayloan.com/payday-loans-la/ long, detailed application that must be processed by multiple organizations.
While SBA loan applications do take a bit longer than traditional and online business loan applications, they do have their positive qualities, some of which include low interest rates and long repayment terms. If you think an SBA loan is right for you, begin the application process before you need cash. This way, the potentially lengthy SBA loan approval time wont be a hindrance to you. Most importantly, be sure to look into all your options before deciding on what is best for your small business.
As with other SBA loans, you will also need to prepare a comprehensive loan application package to apply for the Express loan. This process, of course, will take some time, though Express loans require fewer documents compared to a 7(a) loan. Required forms for an Express loan include a Borrower Information Form and a Statement of Personal History. If more than $10,000 in loan funds will be used for construction, youll also need to fill out an Agreement of Compliance. The Express loans issuing bank should provide direction on how to put together the application package and help you work through the process as needed.