How Long Does It Take to Get an SBA Loan?

SBA loans usually take 30 to 90 days from applying to funding

Fact checked by Vikki Velasquez
Reviewed by Katie Miller

If you are applying for a U.S. Small Business Administration (SBA) loan, you can expect the entire process from application to funding to take about 30 to 90 days.

The SBA loan application process takes time in part because it requires extensive documentation. If a small business owner needs funds on a tight timeline, they may find that other loan options will be faster.

Key Takeaways

• It typically takes 30 to 90 days to receive funding from an SBA loan, but the timeline can vary.
• Factors such as the specific lender and type of loan affect how long it will take to get an SBA loan.
• If your small business needs funding faster, consider alternatives to an SBA loan.
• Alternatives to an SBA loan include a conventional business loan, a line of credit, or a secured loan.

What Is an SBA Loan?

SBA loans provide small businesses anywhere from $500 to $5.5 million in funding. These loans are backed by the federal government and funded by SBA-approved lenders, which can include banks, credit unions, and other specialized lenders.

The SBA’s most common loans are offered through its 7(a) loan program. The SBA also offers loans through its 504 and microloan programs.

Average SBA Loan Amount

The average loan size is $436,270 in the SBA 7(a) program and $1,157,142 in the 504 loan program as of March 8, 2025.

The SBA Loan Process

What can you expect during the SBA loan process?

1. The SBA’s Lender Match will connect you with potential SBA-backed lenders within two days.
2. Once you are matched with potential lenders, you can compare loan rates, terms, and fees.
3. Gather all of the necessary documentation you need to apply for an SBA loan. Documentation requirements will vary depending on the lender, but you will typically need items like your business plan, financial projections, and information on your industry experience.
4. Choose the lender you want to work with and submit a loan application.
5. The lender will consider your documentation, your credit history, and the amount of funds you have requested. The lender may also appraise collateral if it is required for the loan. This step in the process is known as underwriting.
6. The lender will reach out to you with a decision.
7. If you are approved, the lender will send you the loan agreement documents, and you will go through the closing process.
8. Once the loan is closed, you will receive the funding for your small business.

Factors That Affect the SBA Loan Funding Time

How long does it take for a business loan to be approved? The amount of time will depend on several factors, including the individual lender and the type of loan.

Lender

The SBA has specific borrower eligibility criteria, but depending on the type of loan that you are applying for, individual lenders may also have specific requirements. SBA-backed lenders may also have varying application processes.

SBA Loan Approval Rate

Approximately 34% of SBA loans and lines of credit were fully approved in 2023 (latest information).

Type of SBA Loan

The funding time for different types of SBA loans can vary. Let’s look in more detail at how specific SBA loans are funded.

• 7(a) loan: SBA 7(a) loans can give small businesses funding for working capital, real estate, refinancing debt, machinery, and other supplies. The maximum loan amount is $5 million. 7(a) loans are typically approved within 60 to 90 days.
• 504 loan: SBA 504 loans are a type of long-term, fixed-rate financing typically used for fixed assets, such as land or machinery. Loans can be up to $5.5 million. It can take up to six months to receive funding.
• SBA Express loan: SBA Express loans are a part of the 7(a) loan program. The maximum loan amount is $500,000. While faster than some other SBA loans, Express loans can still take time. You may receive funds within 20 days.
• Microloan: Microloans are small SBA loans of up to $50,000. These loans are distributed by local community-based lenders. The average microloan amount is $13,000. The time to funding is similar to 7(a) loans.
• Disaster loan: The SBA offers low-interest loans to help businesses and nonprofits recover following a disaster. These loans can provide up to $2 million in funding. Approval can take two to four weeks, but the exact amount of time varies. The first loan disbursement follows within five days of closing.

What Is the Max Amount I Can Get With an SBA Loan?

SBA 7(a) loans and 504 loans are typically capped at $5 million. Certain projects related to energy efficiency and manufacturing may be eligible for 504 loans of up to $5.5 million each.

How to Speed Up the SBA Loan Processing Time

The SBA loan process requires patience, but you can take some steps to potentially make the process faster.

• Be prepared: Documentation is essential for the underwriting process. Research what kind of documentation you will need for the specific loan you want. Ensure that these documents, like your tax returns and other financials, are up to date. The more complete and current your documentation, the less likely the lender will need to ask you questions, which can slow the process during the underwriting.
• Select an SBA-preferred lender: SBA-preferred lenders are granted the authority to make final decisions on SBA loans. The time to funding may be faster because this type of lender does not have to wait for SBA approval.

What Is the Easiest SBA Loan to Get Approved For?

SBA microloans offer loans up to $50,000 for eligible borrowers. The funds are given out by nonprofit community-based lenders. Each microloan lender determines borrower eligibility. If a small business needs a smaller amount of money, then a microloan may be the easiest type of SBA loan to get.

What happens after an SBA loan is approved? You will receive your funds, and you will need to begin repayment as dictated by your loan’s terms.

Alternatives to SBA Loans

SBA loans are not the only funding option for small businesses. Alternatives include:

• Conventional loans: Many banks and credit unions offer small business loans outside of the SBA loan program. You can explore these options, but keep in mind that lenders offering traditional financing will still want to see a good track record from your business and good credit scores.
• Lines of credit: If you do not want to take out a loan, you can potentially secure a business line of credit. You can use the credit as needed, instead of taking a lump sum from a loan.
• Equity financing: Some small businesses, including startups, may find equity financing appealing. Investors, such as friends, family, or professionals, will buy ownership shares, which gives the company cash to grow.

How Long Does It Take to Get Approved for a Small Business Loan From a Bank?

The amount of time it takes to get approved for a small business loan varies, depending on many factors. You will need to spend the time applying. Next, the bank will conduct the underwriting process. If the loan is approved, the bank will fund it and move money into your account. The entire process can take days or more than a month.

How Long Does It Take to Get Approved for a Small Business Loan From an Online Lender?

Some online lenders offer same-day approval for business loans, but the amount of time it takes can differ. Just like a traditional bank, online lenders will use a variety of criteria to determine your eligibility for a loan.

Is It Easy to Get Approved for an SBA Loan?

It may be easier to qualify for an SBA loan than a traditional bank loan, but you still must meet certain eligibility criteria. For example, you must demonstrate creditworthiness and an ability to repay the loan.

How Can I Know If I am Approved for an SBA Loan?

Financial institutions, such as banks, work with the SBA to give out small business loans. Once you match with a lender and apply, that lender will inform you if your loan application is approved or denied.

What Is the Fastest SBA Loan I Can Get?

The SBA offers SBA Express loans as a part of the 7(a) loan program. This type of SBA loan offers an expedited application response time.

The Bottom Line

SBA loans can help small businesses get the funding they need to grow, but it can take months to go through the process, from applying to receiving the funding. If you need to access funds sooner, you can explore conventional lending options.