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Each institution’s criteria must be fulfilled.  The operative word for most loan officers is “CAUTION.”  Even strong applications to favorable institutions typically need one or more additional documents requested by different lenders.  Obtaining that documentation involves going back to the main players and waiting for them to provide the information, resulting in further delays.

Once the documentation is in place with lenders, it almost always is passed on to loan committees or underwriting departments.  Those officials may not meet for a couple of weeks, creating an immediate delay.  Then, one of the committee members may request clarification on an issue or additional documentation, further delaying the case.

SBA-loan guarantees typically involve more paperwork than conventional loans, and they create more time issues—especially when banks are not “preferred” SBA lenders.  Only a minority of banks are registered as such institutions that can turn SBA-backed loans around more quickly than can other lenders.

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