What is an SBA Express Loan?

The SBA Express Loan is one of the many types of government-guaranteed loans under the 7(a) Loan Program of the Small Business Administration. Unlike other SBA loans, which review and approval take weeks or months, the Express Loan borrower can obtain his loan request within 36 hours from the time the application was submitted.

Loan Amount, Interest Rate and Terms

A small business owner who wants to avail the SBA Express Loan can borrow of up to a maximum amount of $350,000. Although the interest rate of this program can either be variable or fixed, the lenders are not allowed to go beyond the limitation that SBA has set. Lenders are only allowed to charge a maximum interest rate of 6.5% for loans amounting from $50,000 or less, and 4.5% for loans above $50,000. The borrower can repay his debt up to 7 years.

Moreover, compared to some SBA loans where the government guarantees 75% of a loan, only 50% of the Express Loan is warranted.

Eligibility and Credit Approval

The borrower must comply the necessary requirements when applying for the SBA Express Loan, based on the eligibility criteria stated on the 7(a) Loan Program. The approval of the borrower's qualification will be decided by the SBA, while the credit decision will be determined by the lending company after the necessary documents and other loan prerequisites are evaluated.