How Long Does SBA Disaster Loan Approval Take (And Why)?

Exact Answer: 2-3 Weeks

SBA or Small Business Administration is a United States agency that provides governmental support to small entrepreneurs and businesses. It works intending to maintain and strengthen the nation’s economy by establishing and viability of the small businesses in the recovery of communities after disasters. The agency works with 3’c that are capital, contracts, and counseling. SBA was established in 1953.

SBA provides loans through banks, credit, and unions to other lenders and a guarantee on the loan. The SBA’s Act has been established by providing a 90 per cent guarantee to strengthen the small businesses. The SBA’s Economic Injury Disaster Loan program has been established to take care of all the loans falling under the category of disaster.

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How Log Does SBA Disaster Loan Approval Take?

ProcedureDuration of Approval
After applying EIDL21 Days
Typical duration2-3 Weeks

The SBA works directly with the governors for providing targeted and low-interest rate loans to the small businesses and non-profit organisations that were affected by the COVID-19 disaster. The declarations are made on a country basis and are done for funding the small workers. The average duration for the passing of the loan can vary from 2-3 Weeks but this time can also vary to 21 days depending on the procedures and paperwork.

The owners of small businesses can apply if the business along with the affiliates has not more than 500 employees or it is an agricultural enterprise. If the owner is a tribal small business, cooperative, non-profit organisation, or is an aquacultural enterprise. The owners can apply for the loan in these cases along with the proper paperwork.

Small businesses COVID-19 grants relief programs of $5,000 to $25,000 to the eligible small businesses and NGOs affected by the COVID-19 and the health restrictions with it. These grants are a way to provide relief to the people who are still suffering from the effects of Coronavirus. During the pandemic, the small businesses, farms, shops were the ones most affected and this is a way to cure that.

SBA reduces the risk for lenders by making it easier for them to access the capital and get loans. Instead of lending money directly to the small business owners, the community works for establishing guidelines for the loans made by the partnering leaders, community development organisations, and micro-lending institutions. This makes it easier for small businesses to get loans without being conned.

Why Does It Take This Loan For SBA Disaster Loan Approval?

The SBA disaster loan approval takes around 2-3 weeks because the proper paperwork needs to be submitted. Once an application has been submitted by the borrower, approval of the loan depends on the volume of the loan. The duration varies with the loan amount. The approximate timeline for approval is 2-3 weeks and the disbursement can take up to 5 days to complete.

The borrowers are offered individual loans officers for the servicing of the loan. Once the EIDL has been applied, the funding can take 21 days to be approved. The application for EIDL doesn’t take more than 2-3 hours to complete and can be applied online. The application also has the screening page, business information page, business owner page, and an additional information page including the summary.

The status of the application can be checked online through the link given. The SBA states that once the approval of the loan has been done it takes 5 working days for it to reach you but the waiting time can differ according to the amount one wants. The applicants can simply follow three major steps and apply for the loan, starting by applying online, or by calling. Once the application is received SBA verifies it and after proper verification, the loan is sanctioned.


The SBA Disaster loan approval can take up to 2-3 weeks for approval. The approval depends on the time taken for the approval and the money that is sanctioned. The small businesses that got affected by the pandemic can sanction help by filling the online form. The SBA has set a specific loan grant for them. The businessmen have to follow proper procedures from the screening page to the information for the loans to be sanctioned.


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