SBA Express Line of Credit
What is the SBA Express Loan/Line Program?
The SBA Express Line of Credit program helps small businesses with quick and easy Line of Credit under $500,000.
50%SBA guarantee
$500,000Maximum
Up to 10 yrsMaximum maturity
No penaltyFor prepayment
Use of proceeds
- Permanent working capital
- Inventory
- Real estate improvements
- Refinance of existing business debt
Maturity
- Inventory or working capital: typically structured at 7 years but not to exceed a maximum of 10 years.
- 7(a) refinancing: must coincide with the remaining useful life of the assets being refinanced not to exceed a maximum of 10 years.
Interest rate and terms
- Fixed or variable rates, negotiated between borrower and lender subject to SBA maximums, and based on dollar amount of loan and term.
- Lender may charge up to a $2,500 packaging fee.
SBA guaranty fee
| Loan amount | Fee |
|---|---|
| $150,000 or less | 2% of the guaranteed portion |
| $150,001 to $500,000 | 3% of the guaranteed portion |
| Veterans or spouses of veterans | 0.00% |
Who qualifies
- Must be for profit and meet size standards
- Good character and credit management
- Must be an eligible type of business
- 100% of owners and all required guarantors must be U.S. citizens or U.S. nationals with a principal residence in the U.S., its territories or possessions
Benefits for borrowers
- Quick and easy approval
- Fixed maturity
- No prepayment penalty
Ready to talk through your options?
Paul is NOT a loan broker but works for a financial institution that is a direct lender.
