If you’re currently in the market to take out a business loan, then it’s important to make sure that you get access to the financial support you need as soon as possible! The longer you have to wait, the longer your business will have to go without, so time truly is of the essence.
If you’ve already started shopping around for options, then we’re sure that you’ll have noticed that the majority of loans come with a pretty hefty application duration, with some of the longest taking upwards of a few months to process! This is where the beauty of an SBA loan comes into play.
Unlike the majority of loans out there, SBA-approved lenders are known for their speedy decision-making, but despite its quick turnaround, is there any way to speed up the process even more?
Below, you’ll find a breakdown of the top ways that you can get your SBA loan approved faster so that you can get access to the cash as soon as possible. Let’s get started!
SBA Loans: How They Work
To break it down, the SBA (which is otherwise known as the Small Business Administration USA) places a huge focus on getting their customers’ loan applications turned around as quickly as possible so that borrowers can begin using their loans to help support their business.
In order to make sure that the process is as quick as can possibly be, the SBA utilizes a group of their most experienced lenders known as the “SBA Preferred Lenders” which are given the ability to make credit decisions on SBA-guaranteed loans as soon as they come through, rather than having to undergo a lengthy decision-making process that standard lenders would.
Wondering how it works exactly, though? Well, as part of SBA’s list of preferred lenders, all bank lenders who are included within this category are able to offer a much speedier service than that of non-preferred lenders, because they will not need to submit a loan application to the SBA to get approval.
This is extremely beneficial for those who require a loan as soon as possible, as it means that the lengthy, time-consuming process of gaining approval by the SBA does not need to be carried out.
So, in other words, because these preferred lenders have been given a special status by SBA, it means that they are then given the ability to either accept or reject your loan application as soon as they get it.
In addition to this, besides preferred lenders, SBA also offers something known as an Express Lender, which is a group of lenders that have their own forms while completing their loan agreements, which means that they are given the ability to be able to approve loans guaranteed by the SBA on their own.
Due to this, it means that Express Loans can be approved by the SBA in as little as 36 hours. However, the maximum limit that business owners can apply for when applying for funding via the Express Funding Program is $250,000,00.
Top Tips To Speeding Up Your SBA Loan Application
Nevertheless, even though SBA loans have a quick turnaround rate, the duration of each individual SBA loan application process will vary depending on a variety of factors, such as whether a preferred, non-preferred, or express lender has been used. So, to help you speed up the process as quickly as you can - take a look at the top tips below:
1. Know what you’re looking for:
Prior to even applying for your SBA loan, we strongly recommend that you take some time to do a little bit of research, as this will help to ensure that you get faster approval.
By knowing what it is that you need for your business, you will be able to apply for a loan that is most suitable for you, and this will help to improve your chances of faster loan approval.
2. Ensure that you have enough collateral security:
More often than not, most SBA lenders will seek collateral securities in order to allow for the loan to be approved. Though this isn’t always the case for all SBA lenders, it is important to note that they are given plenty of flexibility by SBA to set their own terms and conditions.
For this reason, some SBA lenders may require you to agree to your personal assets being seized in the event that you are unable to repay the loan for whatever reason, so this is something that you should keep in mind.
3. Make sure that nothing is hindering your credit score:
As we have already mentioned above, SBA loans have a much higher chance of being accepted by a lender due to the fact that they come with the promise of an SBA guarantee. However, in order to make sure that there are no unnecessary delays in your application process, we strongly recommend that you take the time to double check your credit score prior to applying for an SBA loan.
Besides being able to check your credit so you know where you are, you will also be able to scan your credit report for any mistakes which may be unnecessarily bringing your credit score down.
In addition to this, you should also be aware that applying for too many loans at once may negatively impact your credit score - so this is something to be aware of while applying for your SBA loan.
4. Ask for help!
Along your journey of choosing and applying for an SBA loan, it’s important to keep in mind that you don’t have to go at it alone.
If you find that you are in need of some advice and assistance while applying for an SBA loan, then you should reach out to SBA or your chosen lender’s helpline, where you will be able to gain some assistance while choosing which loan to go with - which will ultimately improve your chances of getting a loan, and in turn, speed up the process!