When your small business needs funding, an SBA loan may be a great alternative to more common small business loans.

What is an SBA loan?

Simply put, they’re small business loans that are partially backed by the Small Business Association (SBA), a government agency. Because the SBA backs the loan, at least in part, lenders can offer funding on more flexible terms.

Banks and other financial institutions offer SBA loan terms based on the business’s financial records, credit reports, tax returns, and past loan history.

At this point, you might be asking how to get an SBA loan, but you may want to consider a more important question first: how long does it take to get an SBA loan approved?

How Long on Average Does it take for SBA Loan Approval?

In short, SBA loans aren’t known for a fast approval process. Unfortunately, they tend to take about six months, however there are other ways to get you the financing you need in the interim.

Six Months

Yep, you read that correctly. On average, after you apply for an SBA loan, you’ll have to wait six months before you see “approved” on your SBA loan application status.

See, when you submit your SBA loan application to the lending organization, they have to turn around and apply to the SBA to get the loan guaranteed. This multi-step process takes more time than other financing possibilities. If you choose to apply for an SBA loan with ROK, our streamlined process reduces that time to as little as 45 days!

Contributing Factors

On top of that, lenders aren’t always well versed in the SBA loan process, which can extend the time it takes to get approved. And, small business owners are usually required to submit a large amount of information, which can be hard to provide.

Lenders want to see that the small business will be able to make SBA loan payments, which means they’ll want to see credit histories and tax returns. More so, the SBA itself won’t guarantee the loan until they’re sure your business meets their rather stringent requirements.

There are SBA disaster loans available for small businesses impacted by regional and national crises. If you’re wondering how to apply for an SBA disaster loan due to COVID-19 or any regional disaster (floods, hurricanes, etc.), the process is the same but expedited.

That said, even disaster loans take at least 21 days to process, which may not be fast enough, depending on your situation.

What if I need Funding Sooner?

You thought you wanted to know how to apply for an SBA loan, but now you may be wondering about other options. Luckily, there are plenty of other ways to fund your small business needs fast.

Even if you need a small business loan despite bad credit or a lack of time in business, funding options exist. ROK Financial offers both Asset Based Loans and Lines of Credit, which offer same-day funding if approved!

Apply now, and we’ll connect you with a knowledgeable Business Financing Advisor so you can find out which options are right for your small business. The application is simple, and we’re sure that, with our help, you can get back to business!

About the Author, Madison Taylor

Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.