Small Business Speed Pass: Unlocking the Requirements for SBA Express Loans
* Loan Amount - SBA Express loans can be up to $350,000.
* Use of Proceeds - Funds can be used for most business purposes, including working capital, equipment, inventory or real estate.
Funds cannot be used for certain purposes like buying investments or paying delinquent taxes.
* Repayment Term - The maximum repayment term is 7 years for working capital and up to 25 years for equipment and real estate.
* Interest Rates - SBA does not set interest rates for Express loans.
Lenders can charge a reasonable rate based on the prime rate, so rates vary by lender.
* Fees - The SBA guarantees up to 50% of the Express loan amount, up to a maximum of $175,000.
Guarantee fees are low, usually 0.
25% - 3.
0% of the guaranteed portion.
Lenders may also charge additional fees.
* Collateral - For loans over $25,000, the lender will likely require collateral to secure the loan.
They may require business or personal assets.
* Eligibility - Applicants must have a minimum credit score of 725 and meet standard SBA size and eligibility requirements.
The business must be an eligible industry type and meet the SBA's credit standards.
* Ownership - The business must be at least 51% owned and controlled by U.
S.
citizens or legal permanent residents.
* Time to Funding - Express loans can typically be approved and funded faster than standard SBA 7(a) loans, often within 36 hours.
Contact SBA specialist Edwin Freeman at (929) 277-0250 to learn more and apply today.
We'll help you get approved for affordable SBA loans to grow your business faster.
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