Express Term Loan
The Small Business Administration (SBA) has launched an express version of their popular 7 (a) loan program i.e. Express loan. This loan makes it easier for small business owners to obtain funds more swiftly.
Applicants usually wait months for approval. That’s where Biz Loan Bankers – a top loan facilitating company in California – comes to your rescue. The express loan program quickens the review process and fund small businesses quicker.
What is an SBA Express Term Loan?
Some small business owners have a hard time qualifying for conventional bank financing. If you are one of them, fret not. An SBA express term loan program will help secure the funding you otherwise could not obtain.
The Small Business Administration partially guarantees these business loans with accelerated credit decisions, which are offered in 24 to 36 hours. A non-express SBA loan, on the other hand, will incorporate SBA underwriting that takes at least 5-10 business days.
What Can You Use an SBA Express Term Loan for?
You can use an express term loan for the following:
- Working capital
- Purchasing of machinery and equipment
- Purchasing of furniture and fixtures
- Business acquisition
- Real estate, including the purchase of land or buildings, restorations, and construction
What are the Eligibility Requirements for SBA Express Term Loans?
- Make sure your credit score is 650 or above
- Before seeking an SBA express term loan, make sure you have used other funding sources
- You must prove that reasonable financing isn’t available from any other funding source
- You should have a highly effective and strong business plan
- You must have a profitable business
What are the Rates and Terms for SBA Express Term Loans?
Your lender will determine the final terms of your SBA express term loan, albeit the SBA set its guidelines.
Listed below are the terms you need to consider for an SBA express term loan.
- Maximum loan amount – $350,000
- Interest Rates – 4.5% to 6.5%
- Terms: 7 years for a line of credit and 25 years for real estate
Although the application process is speedier, you can’t borrow as much as you can with a standard 7 (a) loan. In addition, you will be subjected to a higher interest rate. However, these ROIs (rates of interest) are usually much lower than offered by online business loans.
Are you ready to get started?