How Long Does It Take To Get An SBA 504 Loan?

The Timeline

When you take out a loan, one of the big questions is how long it will take to get your money. TMC Financing prides itself on its fast lending times, but every loan is handled individually, so there is no one-size-fits-all answer. This flowchart will give you an idea of the steps involved in the lending process and the time each of them takes.

Timelines can vary depending on your project and current SBA loan demand. Please reach out to your TMC Financing business development officer (BDO) for current timelines. They are happy to assist you and answer your questions. 


STEP 1: Prequalification

18 – 48 hours

Your CDC, such as TMC Financing, will request a few forms from you, including three years of personal and business tax returns, a personal financial statement, and interim financials. After TMC’s review, you can find out just what the SBA 504 program can do for you. You’ll confirm your eligibility, find out how much you can expect to receive and how much down payment you’ll need, and save time later when you apply for a 504 loan.


STEP 2: Filing an application & Due Diligence

2-3 weeks

Once you are prequalified and ready to move forward with your intended purchase (often when you go into contract), you will meet with your TMC representative to go over the terms and sign the application documents. Your purchase contract will usually have a Financing Contingency, which allows you time to get all of your financing approvals in place. Many times, the Financing Contingency is around 45 days but discuss this timeline with both your broker and TMC representative.

After you complete the application documents, the TMC loan officer takes over. Our loan officer completes all the underwriting and ensures the application has everything the SBA needs. Once you go into contract, you may be working with a participating lender already, or TMC can help find the best one for your project.

An appraisal and environmental review will be ordered on your behalf and will be submitted to the SBA for approval, along with your application package. The appraisal and environmental review are required by the SBA and your partnering lender.

As a Premier Certified Lender, TMC will package your loan before sending it to the SBA for authorization, saving you considerable time.

*this step in particular largely depends on the readiness of the borrower and the complexity of your project and can vary significantly

STEP 3: Approval

5-7 days

Your application will be sent to the SBA for its approval. The SBA generally takes 5-7 days to approve or decline an application once it is received.

Beginning 8/1/23, applications will undergo a background check by the SBA. In cases where the review identifies any irregularities, there could be a delay of up to a few weeks

STEP 4: Closing

5-14 days

This is the exciting part of the process when you will be taking ownership of your new property! TMC and your partnering lender will prepare the loan documents to send to your escrow officer. Once the escrow officer has what they need, you will schedule a time to sign the final document and close escrow. Every project has unique deadlines; TMC strives to work as fast as possible to meet your deadlines and close when you need to close.

STEP 5: Secure your long-term, below-market, fixed rate

30-60 days

After the completed loan application receives SBA approval and escrow is closed, your loan becomes part of the regular monthly debenture sale. It takes about a month from the time TMC submits your funding documents until the debenture sale occurs. When that is completed, you will be notified of your final below-market loan rate.

Concurrently, the loan proceeds are transferred to cover the temporary “bridge loan.” A bridge loan is used to cover the SBA portion of the loan until the debenture is funded. Once your SBA loan has funded, the bridge loan is replaced with your permanent 25-year, below-market loan. Please note: the borrower is uninvolved in this step. TMC handles this part of the process without assistance from the borrower.

After that, the 504 lending process is complete, but TMC’s Servicing Team is available to answer your questions or help you with lending issues for the life of your 504 loan.

STEP 6: Enjoy your building and fixed monthly occupancy costs!

The process is finished, and you are officially on your way! You will receive your loan payment schedule approximately one week before your first payment is due. Your payments must be made on the first day of the month.
Because no two loans are alike, we can’t guarantee exactly how long it will take to provide your financing. But most of the time it takes approximately 60 days—a period that is comparable with or better than most bank loans. However long it takes, you can be sure that TMC Financing is doing everything in its power to speed the process along and see your business reach new heights of success.

TMC Financing has been helping small businesses access quality financing to fuel business growth since 1981. TMC is a high-volume Premier Certified Lender with the SBA and we can help you put together the best financing package possible using the 504 loan. One of our 504 loan experts would be happy to talk to you about your project and your options for financing. Contact TMC today