Timeline For a Typical SBA 504 Loan

By Christine Halvorsen • 12.08.21
bank loans  business loans  Category SBA 504 Loans  government loans  loans for small business 

This SBA 504 Loan video goes over a mock timeline of events for a typical SBA 504 small business loan. For easy reference, see the full transcript below the video.


The following represents a mock timeline of events for a typical SBA 504 loan involving new buildings starting at the time all required information has been submitted: i. All required information is submitted (start of process). ii. Bank reviews and formally approves (subject to SBA approval)/rejects request: 2-3 weeks. iii. CDC reviews and formally approves (subject to SBA approval)/rejects request: 3-4 weeks (Note: some CDCs will start their review process prior to receiving bank approval which can speed things up.) iv. CDC puts final package together and sends to SBA for approval: 1 week. v. SBA reviews and formally approves/rejects request: 1 week. vi. If approved, bank prepares construction line documents and closes construction line or lines: 1 week. vii. Bank allows advances/draws on the line of credit to pay for qualified project costs according to their policies for administering construction lines of credit: 6-12 months. viii. Upon building completion and certificate of occupancy, the CDC gathers necessary documentation, obtains title opinion, closes final documents with borrower and submits to SBA for funding approval: 1-2 weeks. ix. SBA reviews and issues formal approval to fund: 2 weeks. x. CDC makes final preparations to fund SBA guaranteed CDC loan and schedules funding date: 1 week. xi. CDC funding occurs, generally within 30-45 days, and pays down bank construction line debt. xii. Bank closes permanent bank loan with borrower.

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