Skip to content

What is an SBA Express Loan?

What is an SBA Express Loan?

An SBA Express Loan is a type of 7(a) loan guaranteed by the Small Business Administration (SBA) in amounts up to $350,000, and it can have flexible terms up to seven years. This type of loan can either be issued as a term loan, which is amortized with scheduled payments of principal and interest, or it can be issued as a line of credit.

The SBA Express Loan is a solid lending solution for those who don’t meet the lending requirements of traditional financial institutions, including poor credit history. To qualify for this loan, the business must have its operations in the US, and it must not already have government debt.

How is an SBA Express Loan Different than the Standard 7(a) Loan?

Standard SBA loans:

  • Maximum loan amount: $5 million
  • Maximum SBA guarantee: 85% for loans up to $150,000 and 75% for loans greater than $150,000
  • Interest rate: Lenders and borrowers negotiate the interest rate, but it cannot be more than the SBA maximum.

SBA Express Loans:

  • Maximum loan amount: $350,000
  • Maximum SBA guarantee: 50%
  • Interest rate: Lenders and borrowers negotiate the interest rate, but it cannot be more than the SBA maximum.

Another difference between these two loans is how fast they can be completed. These SBA Express Loan really earns its name because everything about it is fast. The approval time is within 36 hours, the funding becomes available to the borrower within 90 days, and it requires less paperwork. The application process involves the less complicated SBA Form 1919 in addition to the lender’s forms.

One reason this expedited loan from the Small Business Administration is so popular is that the loan is part of the SBA Loan Guarantee Program; it is designed to be quick, and 50% of the loan is guaranteed by the SBA. Lenders like that kind of low risk, so they will require less stringent criteria to qualify for this loan.

Is Collateral Needed for This Loan?

Collateral is not required for the express loans far loan amounts at or below $25,000, they are required for loans over $25,000, and lenders can use their own collateral policy for loans over $350,000.

How Can These Funds Be Used?

Funds from the Express Loan can be used for many business purposes. Examples include:

  • Real Estate Purchase
  • Equipment Purchase
  • Business Expansion
  • Inventory Purchase
  • Inventory Purchase
  • Accounts Payable
  • Vehicle Purchase
  • Travel Expenses
  • Building Repairs
  • Legal Expenses
  • Construction
  • Remodeling
  • Renovation
  • Training

Let Affinity Beyond Capital Issue Your Business an SBA Express Loan!

Affinity Beyond Capital (ABC) employs only the most experienced team to work fast so you receive your funds as quickly as possible. If we receive documents soon enough, we can fund your business in as soon as one day. The funds from the express loan can be used for almost any purpose or project that is related to your business.

The team at Affinity Beyond Capital understands the process of making sure you qualify for this loan and that you have all the necessary documentation required. Whether you need short-term or long-term financing, our team can help. We want you to be approved, and we will work hard to qualify your business for the funding it needs.

What If I Don’t Qualify for This Loan?

If for some reason, you do not qualify, ABC has alternative lending options that will better fit your budget to satisfy your business needs. We have a full range of funding options that can be tailored to all types of businesses.

ABC has helped thousands of clients around the country grow their business and prosper. Our application process is simply easier and quicker than what is offered by traditional institutions. Contact one of our lending professionals today by calling (833) 234-6489!