The Ultimate Guide To SBA Express Loans
The SBA Express loan is similar to the 7(a) loan but has faster loan approval times. Here's everything you need to know before applying for an SBA Express loan.
Businesses that want a low-interest, long-term loan with fast approval times should look to the SBA Express loan. This loan offers many of the benefits of other SBA loans with the added bonus of guaranteed 36-hour approval decisions. Keep reading to learn more about the SBA Express loan program.
Table of Contents
- What Is The SBA?
- What Is The SBA Express Loan?
- SBA Express Loans Rates & Terms
- SBA Express Loans VS SBA 7(a) Loans
- The Two Types Of SBA Express Loans
- How To Qualify For SBA Express Loans
- How To Apply For SBA Express Loans
- FAQs About SBA Express Loans
- The Bottom Line On SBA Express Loans
What Is The SBA?
The Small Business Association (SBA) is a government agency that provides resources and support for small businesses. The SBA provides counseling, educational materials, and capital to small business owners. The SBA is best known for its loan programs, which provide low-cost, long-term loans to businesses that may not qualify for traditional funding.
The SBA works with partner lenders known as intermediaries to provide funding opportunities to small businesses. The SBA guarantees a portion of each loan, taking some of the risks off of lenders so that they are more willing to loan money to small business owners. The SBA also has standards in place that regulate interest rates and terms for these loans.
What Is The SBA Express Loan?
The SBA Express loan program provides up to $500,000 to eligible small business owners. Funds from the loan can be used for nearly any business purpose, from equipment to working capital.
The SBA Express loan stands out from other SBA loan programs due to its short turnaround times. Loan approval is guaranteed within 36 hours. However, loan approval and disbursement of the funds may take weeks or even months.
SBA Express Loans Rates & Terms
SBA Express loans offer very competitive rates and terms.
Maximum borrowing limits for Express loans are $500,000. Express loans are available as term loans or revolving lines of credit.
Interest rates for Express loans are the prime rate plus a markup of 4.5%-6.5% and are based on the amount borrowed.
Term lengths are up to 25 years for commercial real estate. Maximum term lengths are 10 years for all other purposes. Maximum term lengths are 10 years for revolving lines of credit.
SBA Express Loans VS SBA 7(a) Loans
The SBA 7(a) program is the most well-known SBA loan program. While similar to SBA Express loans, there are a few distinct differences between Express loans and 7(a) loans.
The Two Types Of SBA Express Loans
There are two types of SBA Express loans. The type of business you operate can help you determine which loan option is right for you.
How To Qualify For SBA Express Loans
To qualify for SBA Express loans, there are several requirements of the SBA and the lender that must be met.
How To Apply For SBA Express Loans
There are several ways to apply for SBA loans:
- Use the SBA’s lender match service
- Get a referral from your existing financial institution
- Use an online service like Smartbiz or Lendio
Once you’ve found a lender, you’ll move forward with the application process. The lender will verify your documentation, check your credit score, and provide a loan approval decision within 36 hours.
After approval, processing your loan and disbursing funds generally takes around 30 to 90 days.
FAQs About SBA Express Loans
The Bottom Line On SBA Express Loans
The low interest rates and long repayment terms of SBA Express loans are appealing, but it’s the fast approval decisions that make these loans really stand out. Businesses that meet lender and SBA requirements and don’t need more than $500,000 should consider applying for an SBA Express loan.
If this option isn’t a good fit, there are plenty of other SBA loans to choose from. The Standard 7(a) loan is one of the most popular choices. SBA Microloans are a great fit for businesses that need loans of $50,000 or less, while the CDC/504 loan is ideal for large real estate purchases. No matter what you decide, don’t forget to do your research and take the time to determine which is the best SBA loan for your business.