Small Business Funding: The SBA Express Loan Program

Applying for a SBA LoanThe SBA, U.S. Small Business Administration offers plenty of opportunities and resources that help small businesses grow their operations. One of these is the SBA Express Loan, which is under the SBA 7(a) loan program. Here’s what you need to know about this credit option:

  • You could potentially borrow up to $350,000 if you meet the eligibility requirements.
  • You could also opt for a revolving line of credit of up to seven years.
  • Borrowers and lenders are free to negotiate interest rates, either fixed or variable, and tied to LIBOR, prime rate, or the optional peg rate. But take note that they’re not allowed to exceed the maximum rate of the SBA, which is 6.5% over the base rate if your loan is not more than $50,000, and 4.5% over the base rate if your loan exceeds $50,000.
  • In general, SBA approved lenders could utilize their procedures and forms when processing loans.
  • If you’re looking to get a loan as much as $25,000, your lender won’t need any collateral. However, they might utilize their existing policy for collaterals if your loan is more than $25,000.
  • This loan program offers a fast turnaround time, specifically 36 hours after application, provided that you’ve given the lender all the necessary paperwork they need to work with to make a decision about your application.

Do note however that while the SBA Express loan program offers plenty of benefits, not all small business owners could easily qualify for it. However, this does not necessarily mean that you won’t ever get funding for your business. If you’re not qualified for the SBA Express loan program, a mortgage broker in MN says that there are other loan options you could pursue.

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You could check local banks that specialize in business lending. Lenders like these are a viable option since they offer more flexibility regarding the loan application process, plus their people could offer a wealth of business funding advice.