About SBA Express Loans
The SBA Express loan offers a 50% guarantee from the SBA and up to $350,000 can be borrowed. The purpose of the Express loan is smaller paperwork and a faster turnaround for the small business owner. The Express loan can be used as a revolving line of credit for up to seven years before full repayment. Loans in the amount of $50,000 or less have a current interest rate of prime plus 6.5% and loans at $50,000 have an interest rate of prime plus 4.5%. Loans for larger amounts offer varied interest rates based on prime. Check the SBA's informative loan chart to help you decide if the express loan is right for you.
Again, keep it mind it is up to the lender, not the SBA, to determine if you are a good candidate for an SBA loan. SBA approved lenders are required to give you a response to your application for an SBA express loan within 36 hours.
Rules for the SBA Express Loan
Just as with other SBA loans, you must submit all the required documents to your lender for loan consideration. Because the Express loan can be in amounts up to $350,000, check out the SBA's guide to loan guarantee programs to determine if the SBA Express loan is right for you. Read the SBA's frequently asked questions web page where you'll find answers on how businesses can qualify for an Express loan.
Applying for a SBA Express Loan: The Loan Package
If you've never prepared any type of loan package, keep in mind that your loan package for the Express loan must include a business plan, an income statement, a balance sheet and a statement of cash flow. Be prepared to also present at least three years of personal and business tax returns if asked. Free templates for all of these documents can be found in Part Two of this article series.
First, locate your local SBA office and make an appointment. The SBA offers free services and advice to small business owners and will help you prepare your loan package.
Once you've completed each of the required elements for the loan package and have gathered your personal and business tax returns, make an appointment with a SBA approved lender in your area to see if you qualify for a SBA Express loan.