How SBA Loans
Actually Work
No corporate jargon. No runaround. Just the facts you need to understand the process.
The 5-Step Process
Initial Consultation
You meet with your veteran banker (in person, phone, or video). We discuss your business, goals, and financing needs. We'll help you determine which SBA loan type makes the most sense for your situation.
Timeline: 30-60 minutes
Document Gathering
We provide you with a checklist of required documents. Don't worry—we walk you through every single one. Most businesses need: business tax returns, personal tax returns, financial statements, business plan, and personal financial statement.
Timeline: 1-2 weeks (depending on your recordkeeping)
Application Submission
We complete the SBA loan application and submit it to the SBA for approval. We handle all the paperwork. You'll review and sign, but we do the heavy lifting.
Timeline: 1-3 days once documents are ready
SBA Review & Approval
The SBA reviews your application and either approves it or requests additional information. If they need more info, we help you respond quickly. Express loans get 36-hour responses. Standard 7(a) and 504 loans take 30-45 days on average.
Timeline: 2 days (Express) to 30-45 days (Standard)
Closing & Funding
Once approved, we schedule a closing. You sign the final loan documents, and funds are deposited directly into your business account. Simple as that.
Timeline: 3-7 days after SBA approval
What You Need to Qualify
General Requirements
- For-profit business operating in the U.S.
- Owner has invested equity or time
- Tried and been unable to get other financing
- Reasonable credit score (typically 650+)
- Ability to repay the loan
Typical Documents Needed
- Business tax returns (2-3 years)
- Personal tax returns (2-3 years)
- Financial statements (P&L, Balance Sheet)
- Business plan or use of funds statement
- Personal financial statement
Don't have all of these? That's okay. We'll work with you to figure it out.
Common Questions
How long does the SBA loan process take?
SBA Express loans can be approved in 36 hours. Standard 7(a) and 504 loans typically take 30-45 days from application to approval. The biggest variable is how quickly you can provide required documents.
What credit score do I need?
Most lenders look for a personal credit score of 650 or higher. That said, if you're below that and have a strong business case, we'll still work with you. Veterans often get more flexibility.
Do I need collateral?
For loans over $25,000, the SBA requires you to pledge available collateral. However, lack of collateral alone won't disqualify you. The focus is on your ability to repay the loan.
Can startups get SBA loans?
Yes, but it's harder. You'll need a solid business plan, relevant experience in your industry, and some form of equity investment. Most startups qualify for smaller loan amounts initially.
How do SBA loan terms work?
SBA loans offer flexible repayment terms—up to 10 years for working capital and 25 years for real estate. Your veteran banker will help you find the right structure based on your business needs and cash flow.
Ready to Get Started?
Talk to a veteran banker who will walk you through every step of the process.