As part of an effort to get small business owners funds more quickly, the Small Business Administration (SBA) launched an express version of their popular 7(a) loan program. This program promises a credit decision from the SBA within 36 hours in exchange for lower loan amounts and slightly higher interest rates. This loan is the loan for you if you need speed and flexibility.
Purpose: Working capital, as a line of credit, or to purchase commercial real estate properties/business expansion up to $350,000.
Eligibility: Almost any type of for-profit business is eligible.
Use of Proceeds:
You can use the funds from an Express Loan for a variety of purposes, including business expansion, renovation, or new construction, as well as purchasing real estate, like land or buildings.
If you're just starting a business, an SBA Express Loan can help you purchase equipment, fixtures, and inventory. You can also use the funds as short-term working capital or a seasonal line of credit.
If you want to refinance debt, an SBA Express Loan can also help, but there are some conditions. Your creditors must be adequately secured, and you must have a compelling reason to need to pay off the debt.
Terms and interest rates for the SBA Express are similar to the 7(a) program. The more you borrow, the longer your term and the lower your interest rate.
You can either have fixed-rate financing or variable interest rates. The length of your term will depend on the amount you borrow and what you're doing with the money. A real estate purchase will give you the longest term loan of twenty-five years. Short-term loans are up to seven years for a line of credit, and five to 10 years for working capital.