Frequently Asked Questions # 7

7. How long will it take to get a small business loan?

The time it takes to get a loan varies with each situation and is determined by the amount and complexity of the loan request. A good rule of thumb is to allow 60 to 90 days to receive the money. But realize that this is only a rule of thumb, and your experience may differ.

The ASBDC has no control over a loan application once it is presented to a banker or other lender for consideration. A borrower can usually expect a 5 to 10 day delay between the time a completed loan application is presented to the lender and when a "Yes" or "No" answer is received. If the bank submits the loan to SBA for a guarantee, allow another 10 days. Once the loan is approved by the lender or by the lender and SBA if a guarantee is requested, it can take several days to several months to actually close the loan. Loan closings can be contingent on appraisals being performed, insurance being obtained, titles being perfected, etc. In some instances, the process can be shortened some by using a SBA certified or preferred lender or by qualifying to use SBA's Low-Doc Loan Program.

Be aware that these time frames are estimates of the time to process the loan once the application has been submitted to a lender. The estimate does not include the time it takes for the business owner to write and complete a business plan or gather all the information needed for the loan application.

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