About the Program
| Issue: |
SBA Express |
| Maximum Loan Amount: |
$2,000,000 |
| Maximum SBA Guaranty %: |
50% |
| Interest Rate: |
Lenders and borrowers can negotiate the interest rate. Rates are tied to the prime rate (as published in The Wall Street Journal) and may be fixed or variable, but they may not exceed SBA maximums:
- up to 6.5 percent over prime rate for loans of $50,000 or less
- up to 4.5 percent over the prime rate for loans over $50,000
|
| Eligibility Decision: |
By the SBA, qualified lenders may be granted authorization to make eligibility determinations |
| Revolving Lines of Credit: |
SBA Express allows revolving loans up to 7 years with maturity extensions permitted at the outset |
| Turnaround Time: |
Within 36 Hours |
| Forms: |
Lender uses mostly own forms and procedures |
| Collateral: |
Lenders are not required to take collateral for loans up to $25,000. Lenders may use their existing collateral policy for loans over $25,000 and up to $150,000
For loans greater than $150,000, follows SBA's general collateral policy |
| Credit Decision: |
By lender |
| Purchase: |
May request expedited SBA purchase on small loans or in situations where liquidation may be delayed |
Lender Participation
A lender may be eligible to participate in SBA Express if one of the following applies:
- Currently participates with the SBA and meets certain portfolio performance standards. There are no minimum SBA loan volume requirements to begin making SBA Express loans
- Are a non-SBA lender that currently makes a reasonable number of commercial loans of $50,000 or less
Loans made under this program generally follow the SBA’s standards for size, use of proceeds, type of business, and availability of funds. Differences unique to SBA Express are noted below. Contact your SBA district office for more information.
Lenders may use SBA Express only for 7(a) loans and not for the microloan program, the development company program (504), LowDoc loans, or any other SBA pilot program loans unless specifically allowed by that pilot. In addition, the following loans or loan programs are not allowed under SBA Express:
- Disabled Assistance Loan Program (DAL)
- Energy Conservation
- International Trade, except for Export Express loans described in further detail in section 11 below
- Qualified Employee Trusts (ESOP)
- Pollution Control Program
- Defense Loan and Technical Assistance (DELTA)
- CapLines Program (including Builders Loan Program)
- Community Investment Adjustment Program (CAIP)
Size
Eligible and Ineligible Types of Business (Except where noted below)
SBA Express loans cannot be made to:
- Agricultural and farm businesses.
- Fishing and shore operations (including commercial fishing activities and the construction of new fishing vessels).
- Medical facilities involving any type of extended care/assisted living situation (these could be eligible for standard 7(a) loan processing, but additional analysis would be required, which would preclude SBA Express’s expedited handling). Routine medical laboratories/facilities, physician/dental offices, veterinarians, etc., are eligible for SBA Express processing.
- Mines (including sand and gravel pits).
- Applicants with operations, facilities, or offices located overseas (other than those strictly associated with the marketing and/or distribution of products exported from the U.S.).
- Businesses engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs, whether in a religious or secular setting (businesses engaged in moderate such activity could be eligible for standard 7(a) loan processing, but additional analysis would be required, which would preclude SBA Express’s expedited procedures).
- A business deriving directly or indirectly more than the minimum gross revenue through the sale of products, services, presentations, or live performances of any depiction or displays of a prurient sexual nature.
Use of Proceeds
Availability of Funds from Other Sources
