SBA Express Loan Lenders|Find an SBA Express Loan Lender
SBA Express loan lenders offer flexible loan options to small businesses. This loan program enables SBA Express loan lenders offer shorter term, smaller loans for working capital or lines of credit. The biggest difference between an SBA Express loan and a normal SBA 7(a) loan is that SBA Express loan lenders can have an approval decision within 36 hours.
SBA Express Loans at a Glance
Maximum loan amount: $350,000
SBA Guaranty: 50% (vs. 75%-85% for other SBA loans)
Interest rate: prime rate + 4.5% if loan is >$50,000, 6.5% if <$50,000
Term: seven years for a revolving line of credit
SBA Express Loan Lenders Process
The advantage for SBA Express loan lenders is the faster processing time. The lenders are able to work much faster on this type of loan because there is less paperwork and the lender is able to use their normal loan procedures.
A borrower will follow the SBA lender's process that may be used for any type of loan from that particular bank. This can still include some of the same documents for an normal SBA 7(a) loan like financial statements and tax returns, but the bank has less hoops to jump through in submitting an application to the SBA. Because of this, the SBA can approve applications in 36 hours or less.
SBA Express loans and SBA 7(a) loans have the same eligibility requirements. However, the SBA Express loan doesn't require nearly as many forms. The only form the SBA Express loan requires is the borrower information form, or SBA Form 1919.
The SBA is less strict with SBA Express loan lenders because they guarantee a smaller portion of the loan. The SBA only guarantees 50% of SBA Express loans, so they aren't at risk for as much money. By streamlining the process, SBA lenders can use their own, more familiar loan process to turnaround a loan in a short amount of time. This is valuable to businesses that need a smaller sized loan, but have a small window for when they need the funds.
What SBA Express Loans are Used for
SBA Express loan lenders offer financing to businesses that need a quick decision and access to funds faster than a typical loan. They are structured as a revolving line of credit and are well-suited for:
- Inventory expenses
- Equipment purchases
- Working capital
- Accounts receivables
If you need help figuring out if this SBA loan is right for your business, contact Claris Finance. Our team of loan advisers can match you with a loan based on your unique business and financing needs. Get started with Claris Finance today!
Small Business Administration: www.sba.gov/content/sba-express