When you apply for a business loan, then this is often a very stressful time.
When you apply for a business loan, you usually do so because you need that loan. So the waiting to know whether, or not, your application has been successful is often hard.
You might find yourself running to the post box every time the postman visits, or constantly waiting by your phone for a phone call, or email to let you know that your application has been successful.
But when you applied for your SBA loan, you might not actually have been told how you will find out if your loan application has been successful.
Likewise, you might not know where to look for any updates throughout the process. In this guide, we’ll be telling you how to check the status of your SBA loan, and how to find out if it has been approved.
What Is An SBA Loan?
An SBA loan is a type of business loan that is offered by most banks and lenders, and is guaranteed by the SBA.
There are quite a few different types of loans offered under the SBA loan scheme, but they were all created to help support small businesses and entrepreneurs in need.
SBA stands for Small Business Administration, and this is a federal Government agency that was first established in the 1950s.
It was set up with the intention of helping small businesses financially, and supporting them to ensure that they survived the financial difficulties caused by the Great Depression and World War 2.
After this time had passed, the SBA continued to operate in the same way, and you can apply for their loans via banks/lenders.
The SBA themselves does not offer loans, they simply guarantee them. This significantly reduces the risk associated with giving your business a loan, and makes SBA loans more achievable for small businesses.
How Long Does It Take For SBA To Approve A Loan?
When you apply for an SBA loan, you will realize that this isn’t the easiest of processes.
Even though SBA loans are easier to obtain, the application process is pretty lengthy, and you will have to provide a lot of information and documentation in order to be considered for these loans.
The amount of paperwork means that the approval process takes a little longer.
But it isn’t just the amount of paperwork that makes the approval process take so long. This is also influenced by how popular the SBA loan scheme is.
Every single day, a huge amount of businesses apply for SBA loans, and this causes a backlog of applications waiting to be approved.
When you combine this with the range of loans that the SBA offers, it is understandable that the approval process can take quite a long time. But how long, exactly?
Generally speaking, it will take around 60 to 90 days for your SBA loan to be approved. This time frame is given to account for all the different factors that we have spoken about above.
There is always the possibility that you could be approved earlier, but it is best to expect a longer wait in order to avoid disappointment.
How Do You Know If An SBA Loan Is Approved?
Depending on the type of SBA loan that you have applied for, and the way in which you applied, the way in which you find out if your SBA loan application has been approved will differ.
If you have applied for an express loan, then you will usually hear very quickly if you have been approved, and your bank/lender will contact you to let you know if you have been successful.
However, for some other SBA loans, you will need to find out the status of your application yourself. There are quite a lot of different ways in which you can do this, so let’s take a look at how to find out the status of your SBA loan application.
How To Check The Status Of Your SBA Loan
There are generally only 3 different ways for you to check the status of your SBA loan, the best way for you to check will depend on the way in which you applied for your loan. So, let’s take a look at the 3 ways.
Most things are done online now-a-days, so if you applied for your SBA loan online, you will be pleased to hear that you can also check its status online. This is the quickest way to check the status of your loan, and also the easiest.
If you have applied for an EIDL (Emergency Injury Disaster Loan), then this is the best way to check its status.
If you have applied for a standard SBA 7(a) loan, then you will be able to check the status of this by speaking to your bank/lender. Consult with them to see if they offer the ability to check loan status online.
If you are not in a rush to find out the status of your SBA loan, then it is best to direct your status query via email.
If you have applied for an EIDL loan, then you should direct your email to email@example.com. Should you have applied for an SBA loan via a bank/lender, you should instead direct your email to that institution’s customer service.
Failing all the above options, you can always phone to check the status of your loan. But be wanted, you might find yourself stuck on hold for a pretty long time. If you have applied for an EIDL loan, you should call 1-800-659-2955.
Alternatively, if you have applied for a standard SBA loan, then you should contact your bank/lender directly.
In short, in this guide we have taken a look at how to find out if your SBA loan has been approved, and also how to check the status of your application.
The approval process for SBA loans is often a lengthy process, so it is always good to know that you can check in on your status throughout this time.