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SBA Express Loans for Retail Stores

With nearly $5.5 trillion in revenue generated in 2017 alone, the retail industry is one of the largest market sectors in the United States, employing more than 18 million American workers. While it’s true that e-commerce has shifted the market online, and big-box stores dominate the industry for many product categories, retail stores can still thrive if they have the right strategy. So, if you want to start a retail business, or you want to take your current retail store to new heights, you might want to consider an SBA Express loan. SBA Express loans can be funded in as little as 30-45 days and can offer up to $350,000, making them a great choice for many retail stores.

Using an SBA Express Loan for Your Retail Store

SBA Express loans are known for their versatility, as they can be used for a variety of purposes, such as working capital, equipment, inventory, and owner-occupied commercial real estate. In many ways, Express loans are like their larger sibling, the standard SBA 7(a) loan, but they require less paperwork, and can get approved significantly faster.

Retail stores can utilize SBA Express loans for purposes including:

  • Inventory financing: Paying for whatever it is you sell can be one of the most expensive parts of running a retail store— and if you don’t have enough inventory, you won’t be able to maximize your potential sales. Fortunately, SBA Express loans can help you get the money you need to fill up your shelves with the good stuff.

  • Working capital: Whether it’s paying rent or simply keeping up with payroll, everyday expenses can eat into your cash flow, making it difficult to invest in marketing efforts or new merchandise that could take your business to the next level.

  • Partner buyouts: If you’ve gone into your retail business with a partner, and you want to buy their share of the business, an SBA Express loan can help you do so.

  • Buying a retail business: Buying a retail business can take serious cash, but since SBA Express loans can finance business acquisitions, they might be able to get you the funds you need.

  • Building a retail store: If you don’t want to buy an existing business or retail store, you might want to build one on your own— and an SBA Express loan can help you do so.

  • Business debt refinancing: SBA Express loans can help you refinance eligible business debt that’s currently being offered to you at high interest rates, or has other unreasonable terms that make it difficult for you to reasonably repay it.

Retail Stores Can Also Use SBA 7(a) Loans, SBA Microloans, and SBA 504 Loans To Achieve Their Goals

SBA Express loans are one of the fastest and easiest forms of SBA financing— but there are other SBA loan options you should know about, too. These include:

  • SBA 7(a) Loans: The SBA offered nearly $26 billion of SBA 7(a) loans in 2017, making it the Small Business Administration’s most popular loan product. While SBA 7(a) loans can often take between 45 and 90 days to close (somewhat longer than SBA Express loans), they are offered in amounts of up to $5 million, making them a great choice for larger small businesses.

  • SBA Microloans: SBA Microloans only come in amounts of up to $50,000, so they might not be a great choice for businesses that need a lot of capital. However, they can be approved in as little as 28 days, and don’t require great credit, which makes them a fantastic choice for bootstrapped startups and other ultra-small businesses.

  • SBA 504 Loans: If you need up to $5.5 million for heavy equipment or commercial real estate, then the SBA 504 loan could be the solution you’re looking for. Unlike SBA Microloans, 7(a) loans, or Express loans, SBA 504 loans cannot be used for inventory or working capital— but to make up for it, they do have incredibly low interest rates, which currently hover at around 5%.