I'm negotiating an LOI and the seller is asking to specify the SBA timeline (e.g. apply within x days, approved within y days). I would appreciate it if those who have been through the process can provide guidance on a realistic timeline for each step?
Thanks for the help.
Looking for recommendations for defining the SBA loan timeline in LOI
by a searcher from The University of Michigan - Stephen M. Ross School of Business
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Bruce
4/20 - submitted application to lender
4/27 - Received term sheet from lender
5/4 - 3d party commissioned valuation completed
5/11 - Loan approval contingent SBA approval
6/12 - SBA approval and close
The one month delay prior to SBA approval and close was mostly driven by renegotiation of deal points with the seller. We had 24 hour turnaround on all documents requested by the lender.