How to Get an SBA Express Loan for Your Business


how to get sba express loan

When you are running a small business or just starting out with your entrepreneurial venture, you need expendable money. You need a solid line of credit to run your projects before you start making profits and SBA express loan provides just the same. But the question that puzzles most of the entrepreneurs is what qualifications they need before they can apply for a SBA Express loan, and most importantly, how to get SBA express loan. This however doesn’t means that it is an easy way out of your financial issues. Understanding how SBA Express Loan works is a time-consuming task.

 

Here are some facts that you should research about before you apply:

 

Prove how dedicated you are

No one wants to invest money in a lethargic business and business owner, including SBA. You need to prove the lengths you are willing to go to make your business a raging success.

To do this, you need to maintain a number of documents providing:

  • The number of hours you spend in your organization
  • The amount of money you and other people have invested
  • For how long your business has been operative
  • A document pertaining to the equity structures and stakeholders

 

Convince Them Why SBA is Your Only Option

The guidelines of SBA dictates that it is an option only when the other, traditional, methods of loan have been unsuccessful for you thus far into the business. For this reason, you’ll need official papers proving that SBA is your last and only option.

 

Know Your Credit, Cash flow, and Collateral

As you think about how to get SBA express loan, keep in mind that SBA evaluates the following three criteria before lending you any kind of money. So you need you assess what your stance is pertaining these three factors, to increase your chance of approval.

Credit refers to how you have handled your previous loans; whether or not they were paid on time. Ensure that your credit score is up to their standards.

Cash Flow refers to your income after the monthly expenses are deducted. It proves where your business stands at a particular time.

Collateral, as you might already know, refers to the value of assets that secures your loan.

 

Reach Out to a Partner Lender

You can only work with an approved partner lender to obtain a loan from SBA. This process begins with you filling a lenders loan application, but this application and documentation process is not universal – meaning this process varies from lender to lender.

These lenders will also check if you have a written business plan or not, if you have financial projections, if your business is generating profits, whether you’re a veteran or not.

You can even use a Lender Match Tool provided by the SBA to get started.

This is a comprehensive process, but definitely worth the hassle if your business depends on it.

 

 

What differentiates SBA Express loan from other SBA loan types is that unlike SBA 7a loan, this is a much quicker and real solution to your business needs. How to get SBA express loan isn’t as much of a hassle as compared to other means of credit because they respond to your application within thirty-six hours of applying.

As compared to this, general loans take at least 5-10 days to assess your application before taking the application any further. It is vital that you familiarize yourself with the number of pros and cons of this funding route, because it is only then you will be able to make an informed decision.

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