This article is part of a larger series on Business Financing.
Table of ContentsSBA Express loans are government-backed loans issued by individual lenders and can provide up to $500,000 in funding, usually with a 10-year repayment term. Funding speeds are much faster compared to other types of loans backed by the Small Business Administration (SBA), typically around one month, and this is because lenders often have reduced documentation requirements and do not have to wait for review or approval from the SBA.
Express loans fall under the SBA 7(a) loan program, which is one of the most popular financing options offered by the SBA. Like other SBA loans, the SBA Express program can offer you some of the most competitive interest rates. To qualify, however, businesses must typically have strong credit and finances.
If you’re looking for help in getting fast SBA loans, consider reaching out to Clarify Capital. It is a business loan broker with over 75 lenders it can match you with, and you’ll also get personalized recommendations based on your needs and goals.
With an SBA Express loan, you can apply to have it structured as either a line of credit or a term loan. The SBA also provides a slightly different Express loan program for businesses that want to expand the export side of the business. While the SBA Express loan also carries similarities to other SBA loan programs, there are some notable differences that may not make it an ideal fit for everyone.
Depending on the lender you choose, you may have the option to apply for an SBA Express loan structured as either a line of credit or term loan.
If your business is heavily involved in exporting goods internationally, the SBA Export Express loan program may be a better fit. One major difference with this program is that the SBA offers a higher guarantee to lenders to protect against the increased risk of conducting business internationally.
For SBA Export Express loans, the SBA guarantees lenders up to 90% of the loan amount for loans of $350,000 or less and 75% for larger loans. The standard SBA Express loan program, by comparison, only offers lenders a maximum guarantee of 50%.
From a lender’s perspective, having a larger SBA guarantee percentage lowers its risk of lending. If a borrower fails to repay the loan, the lender has the ability to recover the guaranteed portion of the loan from the SBA. As a result, loans with a larger SBA guarantee tend to also carry more competitive rates and other loan terms.
Individual lenders set many of the requirements for an SBA Express loan. However, we’ve listed the typical figures you’re likely to see below. Meeting these requirements won’t guarantee an approval, but it will make it easier for you to find a lender willing to issue funding.