Looking for recommendations for defining the SBA loan timeline in LOI

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

7yrs ago

Looking for recommendations for defining the SBA loan timeline in LOI

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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reply by a searcher 7yrs ago
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.

reply by a lender 7yrs ago
from Nova Southeastern University in Fort Lauderdale, FL, USA

looks about right. Here at Radius, we let the client control the closing process and we ask when you want to close and we do so according to how quickly you can move. I close an $8,000,000 deal a few months ago and it took about 6 weeks from start to finish as the borrower was very motivated to get to the closing table. He insured it happened quickly. He was highly motivated of course.

Bruce