If you’re a business owner or entrepreneur seeking financing, one of your biggest questions is likely: how long will it take to actually get the money?
The answer depends on the type of debt funding you’re pursuing—whether it’s a Small Business Administration (SBA) loan, a conventional loan, or private lending. Each path has its own timeline, driven by different processes, requirements, and sources of capital.
SBA Loans: The Long Haul (But Worth It for Some)
Average Timeline: 60 to 90 days
Some lenders can expedite this to 30 to 45 days, especially those in the SBA’s Preferred Lenders Program (PLP).
Typical Process
- Application and document collection: Up to 30 days
- Underwriting: 10 to 14 days
- Loan approval and commitment letter: 10 to 21 days
- Closing and funding: 7 to 14 days
What Slows It Down?
- Extensive documentation requirements
- SBA review and government bureaucracy
- Multiple layers of approval
Pro Tip: Work with an experienced SBA lender or one that’s part of the PLP to save valuable time.
Conventional Loans: Moderately Timed and Lender-Dependent
Average Timeline: 30 to 90 days
Typical Process
- Pre-qualification and application: A few days to a couple of weeks
- Underwriting and appraisal: Several weeks
- Final approval and closing: 1 to 2 weeks
What Slows It Down?
- Lender efficiency
- Required appraisals and documentation
- Borrower responsiveness
Pro Tip: Stay organized and respond quickly to lender requests to speed things up.
Private Lending: Fast and Flexible (or Very Slow—It Depends)
Average Timeline: A few days to a few weeks — but structured debt funds can take months or years.
Two Sides of Private Lending
- Hard Money/Direct Private Lenders: Approval in 24 hours, funding in 2–5 days
- Private Debt Funds: Fundraising period up to 2 years, investment period 2–4 years
What Slows It Down?
- Fund formation and capital deployment schedules
- Custom structuring and committee approvals
Pro Tip: Private loans move fast due to fewer regulations, but always read the fine print on fees and terms.
Key Takeaways
- SBA Loans: Slowest due to government involvement and complex documentation.
- Conventional Loans: Moderate timelines depending on lender efficiency.
- Private Lending: Fastest for urgent needs, but structured funds take longer.
Final Thought: No matter the loan type, preparation is key. Have your documents ready, choose lenders carefully, and stay proactive to keep things moving.
Want help navigating the funding process?
