How closing works
Ninety days,
bay by bay
Nobody is surprised by the stage they were warned about. The two that actually break commercial closings are undocumented equity and an environmental finding — and both are visible in week one if anyone bothers to look.
Typical time to funding
- Bridge18 days
- Conventional owner-user45 days
- SBA 7(a)60 days
- SBA 50478 days
- Construction96 days
Illustrative midpoints from a complete file. A Phase II environmental adds two to four weeks to any of them.
Day 0 – 3
The read
A conversation and a one-page picture of the deal. No credit is pulled, nothing is ordered, and nothing is promised.
What you bring
- The building, the price and the timeline
- Two years of business tax returns
- A rough sense of available equity
What the desk does
- A view on whether the structure works at all
- The two or three programmes worth pricing
- The honest version of the timeline
Where it stalls
Nothing stalls here. This is the cheapest stage to be told no in, which is why it exists.
Day 3 – 10
Sizing and structure
The three tests get run — leverage, coverage, and the programme rules — and the deal takes a shape.
What you bring
- Interim financials and a debt schedule
- The rent roll, if part of the building is leased
- The equity source, named and documented
What the desk does
- Sizing under LTV, DSCR and debt yield, with the binding constraint named
- A structure with the equity requirement stated plainly
- A written list of what the file still needs
Where it stalls
Undocumented equity. A number in an account is not a source until someone can trace it.
Day 10 – 20
Term sheet
Rate, term, amortisation, prepayment, guarantees and conditions — in writing, with the conditions in the same size type as the rate.
What you bring
- A decision, and a signature if the answer is yes
- A deposit for third-party reports
What the desk does
- Terms that survive underwriting rather than terms that win a beauty contest
- The balloon figure, stated at signing
- The prepayment structure, explained
Where it stalls
A term sheet nobody reads past line four. The conditions are where the closing date actually lives.
Day 20 – 45
Third parties
Appraisal, environmental, title, survey, and the insurance binder. This is the longest stretch and the least controllable.
What you bring
- Access for the appraiser and the environmental consultant
- Entity documents, leases and the insurance agent’s contact
What the desk does
- Reports ordered the day the deposit clears
- A weekly status with dates, not adjectives
- Early warning when a Phase II looks likely
Where it stalls
Environmental. A prior dry cleaner, a fuel tank or a repair shop can add two to four weeks, and the only defence is starting early.
Day 45 – 70
Credit and, on SBA files, the CDC
Full underwriting against the completed file. On a 504 the CDC runs its own approval in parallel with the bank’s.
What you bring
- Answers to the last round of questions, quickly
- Any updated interim financials
What the desk does
- One consolidated question list rather than a trickle
- Both approvals tracked to the same closing date
Where it stalls
A drip-feed of conditions. If your lender sends four emails a week with one item each, the file is not being run.
Day 70 – 90
Closing and funding
Documents, the settlement statement, and the keys. On a 504 the debenture funds after closing on a monthly schedule, which is normal and should never be a surprise.
What you bring
- Cleared funds for the injection
- A signing appointment
What the desk does
- A settlement statement checked line by line before you see it
- A written explanation of what funds when, and what that means for your first payment
Where it stalls
Wire timing and a settlement statement seen for the first time at the table.
Illustrative only. Bollard is a fictional business built as a website demonstration — the figures below are worked examples, not an offer, a quote or a rate sheet.
Next bay
Start at bay one
The cheapest stage to hear no in is the first one. Send the scenario and find out in a day rather than in week six.
Or call the desk
(816) 555-0142Monday to Friday, 8am – 6pm Central
A demonstration number in the range reserved for fiction. It does not ring anywhere.