SBA Loan Process Overview
Below are the four stages in the SBA loan process:
1. Document Collection/Packaging
Your Guidant Financial loan consultant will work with you to collect the documentation needed to begin the loan process. They will provide you with a checklist of items and a secure link where you may upload them. These documents will comprise of things like your projections, business plan, personal financial statement, tax returns, etc. Once all of the items are collected, we’ll review and provide any necessary feedback for changes.
2. Lender Selection
Once we have a complete package, we’ll present your deal to about five top-tier, handpicked lenders that we feel will be a good fit for your loan request. Our goal is to get a Letter of Intent (LOI) back from them within five business days. If for some reason none of those lenders show interest, we’ll continue to send your request to our large network of lenders. Once we receive an LOI (or multiple LOIs), we’ll set up conference calls between you, the lender and Guidant to answer any questions and allow you to make an informed decision on which lender you’d like to move forward with.
Once you select a lender, the next step is underwriting. Most (but not all) lenders will require you to have an LOI for your leased location. Some lenders will also look for a good faith deposit from you that will go toward your closing costs. The underwriting process can take anywhere from 1 day to 2 weeks, depending on the lender. If you pass through underwriting, you’ll be presented with a commitment letter, which is essentially your loan approval, contingent on a closing checklist of items.
This is the final stage of the loan process. You’ll be required to submit the items on the closing checklist provided by the lender. Typically, these items will include a final signed lease, franchise agreement (if applicable), construction bids for build-out, insurance, entity documentation and proof of equity injection, among others. Once you submit all of the required documentation, the loan will be dispersed.