How Long Does It Take For An SBA Disaster Loan To Be Approved (And Why)?

How Long Does It Take For An SBA Disaster Loan To Be Approved (And Why)?

Exact Answer: Five Weeks

SBA, otherwise known as Small Business Administration offers loan services to small start-ups and organizations that are under the count of 500 employees. These loans are provided by the U.S Small Business Administration in association with the lending banks.

SBA also offers loan assistance in cases of disaster ranging from civil unrest to natural disasters. SBA has a part of Disaster assistance that provides economic help to small businesses, non-profit organizations, and homeowners that are in the region that is affected by disasters.

They also offer working capital to new starts-up and small-time businesses to help earn a living that halted due to disasters. However, it can take a few weeks to get the loan to be processed and approved.

How Long Does It Take For An SBA Disaster Loan To Be Approved

How Long Does It Take For An SBA Disaster Loan To Be Approved?

Although it takes longer to process an SBA Loan, it is the most chosen option amongst the long list of lenders. The reason behind that is the benefits that a person can avail of from SBA Disaster loans.

Apart from giving the lowest interest rates, people apply for SBA disaster loans because of the long repayment terms. SBA loan application involves a three-step procedure. The three procedures are as follows:

  • Application process
  • Property verification and Loan processing
  • Loan closing and funds disbursements

Each procedure takes a different length of time to start and end. The application, verification, and processing can take four weeks to complete. While, on the other hand, the disbursement of the funds can take about 5 to 7 days.

This timeline is considering that the documents that are submitted are correct, and the application proposal is convincing enough. A person must apply for an SBA disaster loan only if they are affected economically. It is to make sure that the SBA has issued a disaster declaration in the area.

Part of the processThe time it takes for the procedure to complete
Application, verification, and loan processingFour weeks
Disbursement of fundsOne week maximum
Complete procedureFive weeks

Why Does It Take That Long For An SBA Disaster Loan To Be Approved?

Loan processing and closing in itself is a time-consuming process. But when it is about something as critical as a loan to assist in a disaster, the loan providers try to process it faster. However, there are things to look into, before finally approving an application.

There are many reasons why it takes so much time to get an SBA Disaster loan to be approved. One of the major reasons is to make sure that the application is proper. Each part of the application is necessary.

The application must have correct underwriting, clear financial statements, and other relevant documents to avoid further delay in the application getting accepted.

The most important part of the whole loan procedure is the property verification and the processing of the application. The SBA Disaster Loan team needs to investigate to make sure that all the proofs that are attached are valid. All things have to be considered and validated in an application.

If all the requisites are satisfactorily completed, the loan gets approved and the sanctioning of the amount is set into motion. It is then dependent on the banks as to how soon the amount can be made available in the applicant’s bank account. 

Five weeks is the maximum timing that it can take for the loan application to get approved. It can sometimes take even lesser time. There are also chances that a few applications might also take a day or two more than the stipulated five weeks.


There are four different types of loans that an applicant can opt for. The options include Home and Personal Property Loans, Business Physical Disaster Loans, Economic Injury Disaster Loans, and Military Reservists Economic Injury Disaster Loans.

The loan application is thoroughly verified by SBA personals. They assess all the losses that have been declared in the application. After complete verification, the loan is sent ahead to process.

SBA website also has an option where an applicant can keep track of their loan application. The status of the application is sent to the applicant over email as well. There are many options to approach the SBA for the SBA Disaster Loan.


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Hi! I'm Nidhi.

Here at the EHL, it's all about delicious, easy recipes for casual entertaining. So come and join me at the beach, relax and enjoy the food.

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