Timeline For a Typical SBA 504 Loan

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.