There’s a lot that Small Business Administration officials and lenders are eager to help with, including resources for anyone starting a new venture.
But there’s one thing they don’t want to be known for: handing out money fast. A variety of SBA loans are available for start-ups or business expansion plans, but they are usually granted after a lot of paperwork, meaning successful applicants may not see their funds until at least two or three months.
SBA loan experts say there is something that every applicant can do to ensure fairly fast funding in this window: make sure all forms are filled out completely with accurate information. Incomplete or incorrect information could cause delays while the paperwork comes back to you with questions, or it could simply be declined.
There are also different estimated wait times for every different type of SBA loan. These can include:
- SBA 504. This type of SBA loan includes a Certified Development Company and is based on specific amounts requested for a particular endeavor rather than general startup up funds While SBA officials say the loan process may take one to two months, some particularly complex projects may take up to six months for approval.
- SBA Disaster Loan. This type of financing can help you rebuild your operations after a disaster and get up and running. It typically has three processes involving the applicant giving details about the business. The first two stages are estimated to take about a month, but the third stage, which includes actually giving the funds to the buyer, can sometimes be accomplished in five days.
- SBA 7(a) loan. This typically takes up to three months for approval, unless the applicant is working with an SBA Preferred Lender. Then, he or she typically is knowledgeable enough about the process and trusted by other SBA officials so that there is a possibility of faster approval.
- SBA Microloans. These often take between one and three months and are typically approved for a certain flat fee, up to $500,000.
For more information about SBA loan options or financing strategies visit Prosper Lending Firm.