The average SBA acquisition close takes 60–90 days from executed LOI. Deals that close in 45–55 days almost always have one thing in common: a prepared buyer.
Here's what separates a fast close from a slow one.
Get Prequalified Before You're Under LOI
This is the single highest-leverage thing you can do. A lender-issued prequalification letter means your personal financials, credit, and liquidity have already been reviewed. When you submit a deal, the lender is underwriting the business — not you.
Buyers who submit their personal package at the same time as the deal package add 2–3 weeks to the timeline.
Prepare Your Document Package in Advance
Every SBA lender will ask for essentially the same personal financial package:
- Personal financial statement (SBA Form 413)
- 3 years personal tax returns
- Government-issued ID
- Resume or bio
- Bank statements (typically 3–6 months)
- Business tax returns if you own other businesses
Have this package assembled, current, and in a single organized PDF before you submit your first LOI. Uploading documents piecemeal over two weeks is one of the most common timeline killers.
Order the Business Valuation Early
Business valuations take 2–4 weeks from engagement. Most buyers wait until after the lender requests one. Initiate it the same week you execute the LOI.
Your lender can recommend approved valuators. Use one they've worked with before — it reduces back-and-forth on the report format.
Respond to Lender Requests Within 24 Hours
This sounds obvious. It isn't.
Lenders work multiple files simultaneously. When they send a condition request or a question about the deal, your response time determines your place in the queue. A 5-day response to a routine document request can push your close date by 2 weeks.
Assign one person on your team — you, your attorney, or your advisor — as the single point of contact for lender communications. Route everything through them and set a 24-hour SLA.
Schedule the Appraisal at LOI
For deals involving real property, the commercial appraisal typically takes 3–5 weeks and must be ordered by the lender. Ask your lender to order it the day the LOI is executed rather than waiting for the formal application.
Negotiate a Realistic Due Diligence Period
A 30-day due diligence period is almost never enough for an SBA-financed deal. Lender underwriting alone takes 2–4 weeks once the complete file is submitted. Push for 60–75 days in the LOI, with a mutual option to extend.
A rushed due diligence period leads to requests for extensions, which frustrate sellers and create deal risk. Build the time in upfront.