SBA Express Loans and Export Express Loans
SBA 7(a) loans are small business loans that could reach an upper limit of $5 million. These are widely popular due to the multiple uses that the loan amount could be used for. Below is a discussion of SBA Express Loans and Export Express Loans, which are two types of SBA 7(a) loans.
SBA Express Loans
SBA Express Loans are those which touch a maximum of $350,000 and provide a quick turnaround for small businesses. Instead of the usual time of 5 to 10 days, SBA conducts a review of your application and gives approval within 36 hours for Express loans.
Because the process of loan approval is faster, the SBA guarantees about 50% of the loan request. Furthermore, the interest rate for SBA Express loan is negotiated between the borrower and the lender. However, the terms are kept within the limits designated by SBA.
Export Express Loan
This type of SBA 7(a) loan allows funds up to $500,000. This comes in addition to the 36-hour turnaround allowed by the SBA. According to the amount you borrow, the SBA makes the decision to guarantee up to 90% of this type of loan.
Note that under Export Express loans, the SBA loan requirements of paperwork is distributed to the lenders. They do the paperwork according to their own collateral policies. This gives the SBA a 36-hour turnaround in considering applicants under the Export Express 7(a) loan.