Finance Your Small Business or Start-Up with an SBA Express Loan
If you’re ready to take your small business to new heights, then you’ve come to the right place. At SBAExpress.Loans,Inc., we take pride in our mission to make acquiring an SBA Express loan for your small business a simple and straightforward process. Helping entrepreneurs to understand all there is to know about SBA Express loans is the cornerstone of our method of getting you the financing your small business needs. With our expert team of SBA lending professionals at your service, the financing that may have once seemed out of reach is now at your fingertips!
SBA Express loans are a simple way to receive expedited, amortized government-guaranteed financing for your small business. Entrepreneurs can be granted up to $350,000 of capital in the form of either a term loan or line of credit. Once received, this capital may be used for various business purposes. The true value of an SBA Express loan lies not only in the remarkably fast turnaround time for an approval, but also in the willingness of lenders to advance funds. Due to a guarantee of 50% of the loan amount to third-party lenders by the Small Business Administration, this loan is the best option for business owners who don't meet the lending criteria of traditional financial institutions, or who are lacking in credit history.
What You Need to Know About SBA Express Financing
SBA Express loans fall under the federal government’s SBA Loan Guarantee Program. Though similar to the SBA 7(a) loan, which offers up to $5 million and has a guarantee of up to 85% of the loan amount, the “express” loan sets itself apart by being approved or denied within 36 hours. If approved, funds become available to the business owner within 90 days. This is a far cry from the notoriously grueling process surrounding the SBA 7(a) loan, which requires lengthy application paperwork and even longer lead times for approvals or denials. Still, an unprepared borrower will always have a harder time in trying to get approved—no matter what loan program they apply for. That's why we break down the entire process in detail, to help get prospective borrowers up to speed and ready to receive the funding they're after. We want our clients to apply for their SBA Express loans with the highest confidence, backed by the knowledge of our lending specialists.
How Can Funds from an SBA Express Loan Be Used?
The SBA enforces limitations on how a business owner can use the funds provided. The funds must be used in accordance with the guidelines for SBA 7(a) loan usage. That said, SBA loans are well known to cover a wide variety of central business activities, making them an invaluable resource for any small business.
Acceptable Uses for SBA Express Loan Proceeds
Providing long-term working capital
Accounts payable, purchasing inventory, and other operational expensesProviding short-term working capital
Seasonal financing, contract performance, construction financing, and/or exportPurchasing real estate
Purchasing equipment, furniture, machinery, supplies, and materials
Covering construction and/or renovation costs
Establishing or acquiring a new business, or expanding an existing business
Refinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)
What Loan Proceeds Cannot Be Used For
Reimbursing an owner for any previous personal investments toward the business
Repaying any delinquent withholding taxes
Affecting any change or change of business ownership that will not have a positive effect on the business
Any purpose not deemed a “sound business purpose,” as determined by the SBA
Got any further questions or concerns regarding these rules? Talk to your lender or one of our lending professionals at any time.
Why Choose an SBA Express Loan over Other Forms of Financing?
Though it's usually a last resort for business owners who've already been denied commercial loans, the SBA Express loan is not to be undervalued. There's no better option on the market when it comes to turnaround time after applying. Plus, the SBA guarantee to the third-party lenders ensures a higher approval rate—even for those who, in the past, have found it hard to prove themselves as being sufficiently low risk for a long-term debt arrangement. In fact, the Small Business Administration was founded by Congress as an agency independent of the federal government, whose underlying mission is to help Americans start, build, and grow their businesses. Since its inception in 1953, the SBA has executed millions of loans and loan guarantees to aid small businesses.
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Do I Qualify for an SBA Express Loan?
Qualifying for an SBA Express loan is pretty simple. There are a few requirements, like operating your business within the United States and not having any existing debt obligations to the government. Surprisingly, the criteria isn't nearly as strict as one would think. In fact, the SBA emphasizes the few types of businesses that don't qualify, such as:
Financial institutions that engage in lending
Life insurance companies
Consumer marketing cooperatives
Speculative businesses
Businesses engaged in pyramid sale distribution plans
Businesses that can attribute more than one-third of the gross annual revenue from legal gambling activities
Businesses that promote or partake in any illegal activities
SBAExpress.Loans, Inc. has compiled a definitive list of qualifications for the SBA Express loan.
SBA EXPRESS LOANS GLOSSARY
Working capital is the amount of capital that is available for the day-to-day operations of a business. Working capital is typically used to pay for regular expenses, such as utility bills, employee payroll, rent, inventory, and marketing costs.