Getting your SBA loan approved is a major milestone but what happens next? Many business owners are surprised by the funding process and miss opportunities to build valuable lender relationships. Here’s your complete guide to navigating the post-approval phase and setting your business up for long-term success.

From Approval to Funding: What to Expect

Typical SBA Loan Timeline After Approval

• Final Approval (Day 1-3) Lender issues commitment letter
• You sign loan documents
• Any last conditions are cleared
• Disbursement Starts (Day 3-10) First funds released (often 50-80% of total)
• Remaining funds follow milestones (equipment delivery, project phases)
• Full Funding Complete (Day 10-45) Final disbursement after all requirements met
• Longer for real estate/construction loans

Pro Tip: Wire transfers are fastest (1-2 days). Checks can add a week.

How SBA Loan Disbursement Works

Unlike conventional loans (lump-sum deposits), SBA funds often come with strings:

✔ Milestone-Based Releases

• Example: $300K equipment loan disbursed when invoices are presented

✔ Escrow Accounts

• Common for construction loans
• Funds released as contractors complete work

✔ Working Capital Rules

• May require monthly expense reports
• Some lenders issue a business credit card

Watch For:

• "Use of funds" verification requests
• Required insurance certificates
• Personal guarantee paperwork

Turning Your Lender Into a Long-Term Partner

Smart borrowers don’t just take the money—they build relationships:

Do:

✅ Send quarterly financial updates (even if not required)

✅ Invite them to visit your business

✅ Ask about future credit line increases

Don’t:

❌ Miss payments without advance notice

❌ Make major financial changes without discussion

❌ Ignore covenant requirements (like debt ratios)

"Our SBA lender became our biggest advocate—they approved a $150K credit line increase just 18 months later because we kept them informed."

— Lisa M., Manufacturing Business Owner

Making Your SBA Dollars Work Harder

Priority Spending Checklist

1️⃣ Revenue-Generating Investments First

• Equipment that increases capacity
• Marketing with measurable ROI

2️⃣ Debt Refinancing

• Pay off high-interest loans first

3️⃣ Strategic Reserves

• Keep 3 months’ payments liquid

4️⃣ Avoid

• Owner distributions
• Non-essential renovations

Tracking Tools We Recommend

• QuickBooks for expense categorization
• Divvy or Ramp for controlled spending
• Weekly cash flow reviews

Planning Your Next Financial Move

6-12 Months After Funding:

🔹 Monitor loan covenants

🔹 Build business credit

🔹 Explore SBA 504 for real estate

12-24 Months Out:

🔹 Request credit line increases

🔹 Refinance if rates drop

🔹 Prepare for growth financing

Book a Call with a SBSS Specialist