SBA Express Loans

SBA Express Loans are part of the Small Business Administration’s (SBA) 7(a) loan program, designed to provide small businesses with quick and easy access to capital. Here are the key features and benefits of SBA Express Loans:

Key Features of SBA Express Loans

1. Loan Amount: Up to $500,000.
2. Approval Time: Faster approval process compared to standard SBA loans, typically within 36 hours.
3. Interest Rates:

• Can be fixed or variable.
• Rates are negotiated between the borrower and the lender but are capped by the SBA.
• Loans of $50,000 or less: Prime + 6.5%.
• Loans over $50,000: Prime + 4.5%.

Application Process

1. Prepare Documentation: Gather necessary documents such as business financial statements, personal financial statements, tax returns, and a business plan.
2. Apply with an SBA Lender: Approach a participating SBA lender (banks, credit unions, or other financial institutions) to start the application process.
3. Lender Review: The lender reviews the application and makes a decision, often within 36 hours due to the expedited process.
4. SBA Review and Approval: The SBA provides its guarantee if the loan meets their criteria, further securing the lender’s investment.

Key Participants

• SBA Lenders: Financial institutions approved by the SBA to issue SBA-backed loans, including banks, credit unions, and other financial entities.
• The SBA: Provides a guarantee for a portion of the loan, reducing the lender’s risk and facilitating easier access to capital for small businesses.