Has Your SBA Approval been DELAYED?

You’ve done the hard work: prepared your business plan, gathered financials, and applied for an SBA loan. Yet weeks (or months) later, you’re still waiting. The delay isn’t just frustrating; it can stall growth, opportunities, and even payroll. So why does your local bank keep dragging its feet on your SBA approval? Let’s break it down.

SBA Loans Are Complex by Design

• SBA loans involve two layers of approval: the bank and the Small Business Administration.
• Your bank must first underwrite the loan, then submit it to the SBA for final authorization.
• This dual process adds time compared to conventional loans.

Documentation Overload

• SBA loans require extensive paperwork: tax returns, financial statements, business plans, personal background checks, and more.
• Missing or unclear documents often send your application back to the bottom of the pile.

Tip: Keep a checklist and submit a complete, organized package upfront.

Bank Capacity & Priorities

• Local banks may have limited staff trained in SBA lending.
• If SBA loans aren’t their priority, your file may sit behind faster, more profitable conventional loans.
• Smaller institutions often juggle compliance with limited resources, slowing the process.

Risk Review & Compliance

• Banks must ensure your loan meets strict SBA guidelines.
• If your industry is considered high-risk, or your financials raise questions, the bank may request additional clarifications.
• Each round of review adds days or weeks.

SBA Backlog

• Even after your bank signs off, the SBA itself may face processing delays due to high demand or staffing shortages.
• This is especially common after major economic shifts when SBA programs surge in popularity.

How to Speed Things Up

• Work with an SBA-preferred lender: These banks have delegated authority to approve loans internally, which means faster approvals.
• Stay proactive: Follow up regularly, respond quickly to requests, and keep communication open.
• Explore alternatives: speak with an experienced broker who works with those preferred SBA lenders.

Let us connect you with an experienced broker today: https://www.fitufinance.com/contact/