Looking for recommendations for defining the SBA loan timeline in LOI

searcher profile

January 29, 2019

by a searcher from The University of Michigan - Stephen M. Ross School of Business in 1075 Gills Dr, Orlando, FL 32824, USA

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.

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commentor profile
Reply by a searcher
from Harvard University in 1970 Walton Dr, Burlington, WA 98233, USA
My timeframe:
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.
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Reply by an intermediary
from Oklahoma State University in Memphis, TN, USA
I would be careful with this. In 15 years, I think I have only had a couple close on the original time lineline the lender quoted. That is not the result of a questionable deal or slowness on the part of the buyer or the seller either. It's als0 not because the banker was intentionally misleading about the time frame. It just takes time. I think 90 to 120 days would be common, but longer is a possibility.
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