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How Long Does It Take an SBA Express Loan to Get Approved?
Most SBA Express loans are can go from initial application to funding within 45-60 days. However, some lenders can close these loans in as little as 30 days. However, no matter what SBA lender you work with (or what business you’re in), the more prepared you are when it comes time to apply for an
Most SBA Express loans are can go from initial application to funding within 45-60 days. However, some lenders can close these loans in as little as 30 days. However, no matter what SBA lender you work with (or what business you’re in), the more prepared you are when it comes time to apply for an SBA Express loan, the faster the process will go.
SBA Express Loan Closing Times Compared to Other SBA Loans
Loan Type | Estimated Closing Time |
|---|---|
SBA Express | 45-60 days |
SBA 7(a) | 60-90 days |
SBA 504 | 45 days (varies) |
SBA Microloan | 28-30 days |
In general, SBA Express loans close significantly faster than other forms of SBA financing. The SBA’s flagship program, the 7(a) loan, typically closes within 60-90 days, on average, 15-45 days more slowly than the average Express loan. SBA 504 loans, which are specifically designed to fund heavy equipment and owner-occupied commercial real estate (not working capital) can also close within as little as 45 days, though this process can significantly longer, depending on the individual circumstances.
SBA Microloans May Be The Fastest Form of SBA Funding
While they can only offer up to $50,000 and have slightly higher interest rates, SBA microloans can often close even faster than SBA Express loans, with an average closing time of 28-30 days. Plus, microloans don’t require businesses to have great credit. So, if you operate a small business that needs a little bit of money as soon as possible, an SBA microloan could be another option to consider.
Related Questions
What are the requirements for an SBA Express loan?
To qualify for an SBA Express loan, businesses must meet the eligibility requirements determined by the SBA 7(a) program. These requirements include:
- Operating for profit in the USA
- Having been in operation for at least two years
- Meeting SBA size standards
- Having already looked for alternative funding
- No delinquencies or debt obligations to the US government
- Good character and a credit score of 600-650
Certain businesses may be ineligible, and additional documents such as a personal history statement and financial projections may be required. If approved, the funds will be disbursed within 90 days and a guaranty fee will be required.
For more information, please visit SBA Express Loan Requirements.
How do I apply for an SBA Express loan?
To apply for an SBA Express loan, you'll need to start by clicking the Apply Now button on the SBA Express Quick Online Application page. You'll then need to provide some information about your business and the loan you're looking for. After that, you'll need to complete the SBA Express Loan Application Checklist, which includes various forms and instructions on where and how to file them. From start to finish, our specialists are available to help guide you every step of the way.
What is the maximum amount I can borrow with an SBA Express loan?
The maximum amount you can borrow with an SBA Express loan is $350,000.
This information comes from www.sbaexpress.loans/loan-terms and www.sbaexpress.loans/blog/sba-express-vs-standard-sba-7a-loans.
What is the interest rate for an SBA Express loan?
The interest rate for an SBA Express loan depends on the loan amount. For loans of more than $50,000, the interest rate is capped at the WSJ Prime Rate plus 4.5%. For loans between $50,000 and $250,000, the fixed interest rate is 6% above the WSJ Prime Rate. For loans of less than $50,000, the interest rate is capped at the WSJ Prime Rate plus 6.5%.
You can find the current SBA Express Interest Rates here.
For comparison, SBA Microloans typically have interest rates of anywhere between 6.5% and 13%. Rates are generally limited to the cost of funds plus certain percentages, as represented in the table below.
Loan Amount Interest Rate Spread $10,000 or less Cost of funds + 8.50% More than $10,000 Cost of funds + 7.75% According to the SBA, the average microloan in 2022 had a 7.9% interest rate.
How long does it take to get an SBA Express loan approved?
SBA Express loans are very fast. Expect a determination on your application within three days, maximum. And after that, funds will typically be dispersed in as few as 20 days.
The SBA 7(a) loan, on the other hand, takes a bit longer. Approvals take up to two weeks, generally speaking, and fund dispersal can take up to a month and a half following an approval.
SBA Microloans may be the fastest form of SBA funding. While they can only offer up to $50,000 and have slightly higher interest rates, SBA microloans can often close even faster than SBA Express loans, with an average closing time of 28-30 days. Plus, microloans don’t require businesses to have great credit. So, if you operate a small business that needs a little bit of money as soon as possible, an SBA microloan could be another option to consider.