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Navigating the world of SBA loans in 2025 can feel complex, but with the right preparation and insights, you can dramatically speed up your loan approval and funding process. In this post, Beau Eckstein, a seasoned lending expert, walks through the key changes in SBA lending, common pitfalls that delay closings, and expert strategies for getting funded quickly and efficiently.
Major 2025 SBA Lending Change: No More Foreign Minority Owners
A huge policy change in 2025 now prohibits non-U.S. citizens and non-permanent residents from participating in SBA loans—even as minority investors. Previously, they could be involved in deals without being loan guarantors, but that’s no longer allowed.
This change means every single individual with ownership in a business applying for an SBA loan must be either:
- A U.S. citizen
- Or a permanent resident (green card holder)
Deals in progress that include ineligible minority owners may now be forced to restructure or cancel. While this change is intended to ensure SBA loans benefit U.S.-based individuals, it's a significant adjustment that has already impacted many transactions.
Common Mistakes That Delay SBA Loans
Borrowers often inadvertently slow down the process with missing documentation or delayed responses. Here are some of the biggest issues:
- Not securing life insurance (if required by the lender)
- Missing business licenses, permits, or sales tax certificates
- Lease agreements not signed or ratified
- Construction projects without finalized permits
- Incomplete or delayed tax transcripts and personal financial forms
- Making large purchases or acquiring new debt during the approval window
A surprising number of deals stall because of poor document readiness. Always think of your SBA loan like a mortgage—don't add debt or change your financial profile mid-approval.
How to Speed Up Your SBA Loan Approval
Beau emphasizes that speed and success are in the borrower’s hands. Here's how to accelerate your approval and funding:
- Be organized. Have all key financials ready: tax returns (personal and business), profit and loss statements, balance sheets, and SBA forms like Form 413.
- Use a secure document folder (like Dropbox or Google Drive) to store everything you’ll need. Share it with your broker or banker upfront.
- Choose the right lender. Not all SBA lenders are created equal. Preferred lenders (PLP) move much faster and can often approve without SBA review.
- Stay responsive. Reply to lender needs lists and closing conditions quickly. Delays on your end can stall the entire process.
If there are elements like real estate, construction, or franchise agreements involved, be proactive in managing those moving parts early.
Documents You Should Have Ready
Before you even talk to a lender or broker, make sure you have the following:
- Last three years of personal and business tax returns
- Updated P&Ls and balance sheets
- SBA Form 413 (Personal Financial Statement)
- Any required business licenses or permits
- Draft or signed lease agreements
- Information on any affiliated businesses (where you own 20% or more)
Having these items ready to go will save you time and improve your credibility as a borrower.
Why Organization and Teamwork Matter
Beau points out that some borrowers are extremely dialed in—and they’re the ones who fund faster. If you're not detail-oriented, outsource your bookkeeping and financials. Work with a reliable CPA or bookkeeper who can provide timely, professional documentation.
Being organized and working closely with your broker or lender ensures a smoother process and increases your chances of getting favorable terms.