SBA loans improve in response time
Following the aftermath of several major weather events that occurred last year, an increasing number of businesses are submitting loan applications for funding. The Small Business Association (SBA) is one of the mainstays offering assistance to entrepreneurs and business owners, but previously took as long as 70 days to notify applicants if their application was accepted. In fiscal year 2013, the SBA is working to greatly decrease that deadline.
In recent months, the SBA has decreased its average loan response time to 17 days. This will be of huge benefit to businesses seeking assistance as they can more quickly know if they will receive funding. After a natural disaster, managing cash flows to take care of necessary repairs can be troublesome, and it’s crucial to come up with a recovery plan quickly.
SBA loans to improve even more
The SBA’s faster response times will give businesses rapid insights into potential incoming funding streams during times of distress, and help them allocate those funds to the most needed areas of the business accordingly.
Additionally, if businesses receive a rejection from the SBA, they can begin seeking alternative funding sources immediately and waste weeks of time holding out on an application that ultimately will not be granted.
The SBA is a beacon in the business community for several reasons, a great deal of those centering on the resources they provide for entrepreneurs and business owners. Their decision to provide low interest rate loans for corporate disaster relief further shows the organization’s investment into the well-being of deserving companies.
Because it is a national organization servicing numerous businesses, it’s understandable that there be a backlog depending on the swath of areas affected by the disaster. But business owners whose companies are affected by these disasters will appreciate the SBA’s efforts to maintain faster loan response times, and be able to more quickly make decisions for how to restructure corporate finances during the recovery period.