When most business owners become aware of the benefits of an SBA loan, they become eager to know more of the processes they need to go through to get the loan. In this blog post, business owners will learn about the SBA loan disbursement process.
The first step that needs to be taken for the SBA loan disbursement process is to apply for the loan. One of the most vital parts of this process is the application. If they do not get the SBA loan application right, it might reduce their chances of eventually getting the loan. Here is the proper way to apply to get the SBA loan disbursement process right.
They should ensure that the SBA has formally approved their location on their official disaster declaration list. As soon as it is confirmed that their location is part of the areas that have been declared for the SBA loan, then they become eligible to participate in the loan application. This stage is very important, it will prevent interested business owners from wasting their time.
Once they are certain about their eligibility, the next thing to do is to apply for the loan. There are different ways this loan can be applied. The loan can be applied by mail, online, or onsite. But if they want to go through the fastest route, I will recommend you apply online. And aside from the fact that they will get attended to faster when they apply online, it is a safer method in a time like this where covid 19 cases are on increase on a daily basis.
If the SBA loan is applied online, it will take about 30 to 40 minutes to fill out the application. When filling the application form, proper attention must be given to avoid mistakes.
After the application has been sent to the SBA, one of the first things they will inspect is the credit score and the property or the machinery used as collateral. The SBA has a loan officer who will ensure that the insurance payments and credits were well paid by the applicant before he/she confirms your eligibility. This stage is one of the most challenging stages for most business owners who do not have a good credit score in the past. To avoid being disappointed, the participant should ensure they have a good credit history.
This stage is the decision making by the SBA. It can take the SBA two to four weeks to make their decision. If the SBA approves the application they will send the loan closing documents for the applicant to sign.
After the loan closing document is signed, the applicant will receive his/her first loan disbursement within five days of closing. Depending on the amount of loan that was applied, the SBA will make an initial disbursement of a percentage of the loan. Then the next thing they need to do after the first disbursement is to get a case manager to aid them to meet up with all the conditions that come with the loan and then schedule for the remaining part of the loan.