How to get your SBA 504 Loan Approved faster During the Pandemic?

In response to the overwhelming challenges faced by small businesses across America, in March of 2021 the U.S. government announced a Coronavirus Stimulus Bill, which provided almost $350 billion in emergency relief funding to help small businesses stay afloat during the COVID-19 pandemic.

This government assistance includes the Paycheck Protection Program, Economic Injury Disaster Loans (EIDL), the Emergency Capital Investment Program, and Small BusinessTax Credit Programs.

Your small business could receive a Economic Injury Disaster Loan (EIDL) of up to $2 million in funds. It differs from the requirements of regular 504 Loan in that this emergency capital can be used to meet financial obligations and operating expenses that could have been fulfilled had the disaster not occurred.

These include fixed debts, payroll, and accounts payable. For information on the status of your economic injury disaster loan, contact SBA disaster customer service at 1-800-659-2955 (TTY/TDD: 1-800-877-8339); or email disastercustomerservice@sba.gov.

Submitting an application for an SBA loan usually means waiting for the slow moving gears of the government to process your request and deposit the necessary funds in your accounts. Once your completed application has been received, the SBA estimates it will take 2-3 weeks to find out whether or not you’ve been approved.

If approved, you’ll probably have to wait about another week before receiving the funds. In other words, it will take a month from the time you submit your application to when you receive your loan.

There are some things every small business owner can do to speed up this process:

1. While it may seem obvious, make sure you provide all the necessary documentation to prove you can pay back the loan. The application process will go much more smoothly if you take the time to keep your financial, accounting and tax records up-to-date and accurate.
2. Make sure you have a strong business plan. Its purpose is to show that you understand your own operation and market, can communicate the essentials of your business, and have done enough research to provide realistic calculations predicting your future financial results.
3. Make sure you’ve chosen an SBA-ready lender that caters to businesses like yours - some may not work with startups, for example.
4. If you’re able, offer more backup than is asked for. One of the advantages of SBA loans is that they often require less of a down payment than typical business loans. You’ll benefit by putting down more than is asked for or offering a personal guarantee.
5. Lastly, make sure you have an experienced business advisor.

A Certified Development Company, such as 504 Capital Corporation, can help you get your 504 funding more quickly. As you can tell from our name, SBA 504 loans are our specialty. We’re a preferred SBA lender in North Carolina with additional small business financing throughout Virginia, D.C., and Maryland.

We know how to help small businesses connect with the SBA so they can take advantage of stimulus relief through Paycheck Protection Program and SBA 504 loans.

Since 1983, our expert financial team at 504 Capital Corporation has been offering business owners financing at market rate, with a minimum down payment. Because we work under the Accredited Lenders Program (ALP), we can facilitate the purchase of the fixed assets your business needs to succeed. Our loan experts can answer any questions and help you through every step of the process to ensure your application is processed expediently. Contact us today to begin fulfilling your small business goals.