# 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.

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Last checked: 2026-11-08

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 credit 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.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.1, Disbursement Period (p. 207)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1.a.iii (about p. 64)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 17, Para. B.3 (p. 391)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)