Most SBA Express loans are close on the lender's own timeline, usually faster than a standard 7(a) loan because the lender makes the credit decision without a separate SBA review. However, some lenders can close these loans in as little as 30 days. However, no matter what SBA lender you work with (or what business you’re in), the more prepared you are when it comes time to apply for an SBA Express loan, the faster the process will go.
SBA Express Loan Closing Times Compared to Other SBA Loans
Loan Type | Estimated Closing Time |
|---|---|
SBA Express | Set by the lender; no separate SBA review |
SBA 7(a) | SBA review typically 5 to 10 business days, then lender closing |
SBA 504 | Varies by CDC and bank |
SBA Microloan | Varies by intermediary |
In general, SBA Express loans close significantly faster than other forms of SBA financing. The SBA’s flagship program, the 7(a) loan, goes through a separate SBA review, typically 5 to 10 business days for a standard 7(a) loan, unless the lender has delegated authority. SBA 504 loans, which are specifically designed to fund heavy equipment and owner-occupied commercial real estate (not working capital) can also close within as little as 45 days, though this process can significantly longer, depending on the individual circumstances.
SBA Microloans May Be The Fastest Form of SBA Funding
SBA Microloans, made through nonprofit intermediaries in amounts up to $50,000, are another option for smaller needs. So, if you operate a small business that needs a little bit of money as soon as possible, an SBA microloan could be another option to consider.
Related Questions
What are the requirements for an SBA Express loan?
To qualify for an SBA Express loan, businesses must meet the eligibility requirements determined by the SBA 7(a) program. These requirements include:
- Operating for profit in the USA
- Being an operating business (SBA sets no minimum time in business)
- Meeting SBA size standards
- Having already looked for alternative funding
- No delinquencies or debt obligations to the US government
- Good character (SBA sets no minimum credit score; many lenders look for 600-650)
Certain businesses may be ineligible, and additional documents such as a personal history statement and financial projections may be required. If approved, the lender sets the closing and funding timeline, and an SBA guaranty fee may apply.
For more information, please visit SBA Express Loan Requirements.
How do I apply for an SBA Express loan?
To apply for an SBA Express loan, you'll need to start by clicking the Apply Now button on the SBA Express Quick Online Application page. You'll then need to provide some information about your business and the loan you're looking for. After that, you'll need to complete the SBA Express Loan Application Checklist, which includes various forms and instructions on where and how to file them. We route your inquiry to SBA lending partners; the lender makes the credit decision.
What is the maximum amount I can borrow with an SBA Express loan?
The maximum amount you can borrow with an SBA Express loan is $500,000.
This information comes from www.sbaexpress.loans/loan-terms and www.sbaexpress.loans/blog/sba-express-vs-standard-sba-7a-loans.
What is the interest rate for an SBA Express loan?
The interest rate for an SBA Express loan depends on the loan amount. For loans of more than $50,000, the interest rate is capped at the WSJ Prime Rate plus 4.5%. For loans between $50,000 and $250,000, the fixed interest rate is 6% above the WSJ Prime Rate. For loans of less than $50,000, the interest rate is capped at the WSJ Prime Rate plus 6.5%.
You can find the current SBA Express Interest Rates here.
For comparison, SBA Microloans typically have interest rates of anywhere between 6.5% and 13%. Rates are generally limited to the cost of funds plus certain percentages, as represented in the table below.
| Loan Amount | Interest Rate Spread |
|---|---|
| $10,000 or less | Cost of funds + 8.50% |
| More than $10,000 | Cost of funds + 7.75% |
How long does it take to get an SBA Express loan approved?
SBA Express loans are very fast. the lender makes the credit decision itself, without a separate SBA review, and then sets its own closing timeline.
The SBA 7(a) loan, on the other hand, takes a bit longer. SBA reviews a standard 7(a) application in about 5 to 10 business days, and the lender then sets the closing timeline.
SBA Microloans may be the fastest form of SBA funding. SBA Microloans, made through nonprofit intermediaries in amounts up to $50,000, are another option for smaller needs. So, if you operate a small business that needs a little bit of money as soon as possible, an SBA microloan could be another option to consider.