How long do I have to draw an SBA loan after approval?
Short answer
The SBA Terms and Conditions state the disbursement period. A 7(a) loan must be fully disbursed within 48 months of approval, or SBA cancels the undisbursed balance. SOP 50 10 8.1, Section B, Chapter 6, Para. D.1 sets this.
SOP 50 10 8.1, Section B, Chapter 6, Para. D.1 (p. 207) says the disbursement period must be stated in the SBA Terms and Conditions. The loan must be fully disbursed within 48 months of approval. After that, SBA cancels any remaining undisbursed balance.
Lines of credit
SBA considers a line of creditA credit limit you can draw on, repay and draw on again. fully disbursed at its first disbursement. Its draw period follows its own maturity rules. An SBA Express line allows no advances after the first 60 months (Appendix 17, Para. B.3).
Asking for more time
A lender can request an exception under the SOP's Exceptions to Policy process. The request must give the loan number and explain how any cost increases are being financed. It must also say how many months the lender wants to add.
How this affects the fee
On loans over 12 months, the lender still must pay the Upfront Fee within 90 days of approval. That date is not extended even if the disbursement period is (Section A, Chapter 4, Para. C.1.a.iii, about p. 64).
Closing through escrow
A lender may use an escrow account for up to 5 business days to facilitate a closing. It may charge you interest only on funds that have left escrow (Para. D.1).
Your SBA Terms and Conditions control, so check the disbursement period stated there.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.