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The SBA Loan Approval Process and Time Frames

The SBA Loan Approval Process and Time Frames

  • Posted: Jun 06, 2017
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The SBA Loan Approval Process and Time Frames “It’s not your parents’ SBA!” The U.S. Small Business Administration has been supporting small business owners in the United States since its inception in 1953. Its lead program, the SBA 7(a) government-guaranteed loan program, is one that has evolved into a very efficient and consistent process for loan approvals among participating SBA lenders. The most important factor to understand is that the SBA loan approval process is now a very refined template for underwriting the loan risk and loan approval decision. That means the SBA 7(a) loan approval process and time frames can now be the same, if not more efficient, than conventional bank or nonbank small business financing.
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When to Add a Personal Guarantor to a Small Business Loan Application

When to Add a Personal Guarantor to a Small Business Loan Application

  • Posted: Mar 17, 2016
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Whenever I explain the SBA and small business loan application process, I like to remind listeners that: (a) every small business loan application is evaluated according to five basic criteria, and (b) each loan application exhibits strengths and weaknesses which must be evaluated in the underwriting and loan approval process. The five criteria being evaluated include:  
(1) Personal investment by the loan applicant compared to the amount of debt being requested,
(2) Cash flow and repayment ability of the applicant for the proposed loan amount,
(3) Business ownership and management credentials of the applicant,
(4) Credit history of the applicant with other lenders, and
(5) Collateral offered for the loan in case of inability to continue making payments on the loan.
A good reason for a small business owner to think he can find a compatible lender would be if all five criteria have strong characteristics which can be documented by the lender.  

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