Qualities of the SBA Express Loan That Change the Lending Game

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Loan ApplicationThe Small Business Administration may not directly lend money to small business owners, but nobody could deny the assistance they provide to countless young entrepreneurs in America. Thanks to this federal agency, more established enterprises are getting the type of financing they require from qualified banks to further their growth.

However, many borrowers still aren’t happy with the process. If you’ve applied for an SBA loan before, you know your application wouldn’t be a breeze. Fortunately, the agency isn’t turning a blind eye toward certain criticisms, which is why it launched SBA Express.

The financial product’s name alone is suggestive, but it actually changes business lending in more ways than one.

Fast Approval

All lenders providing the SBA Express loan program in MN, CA, IL, and anywhere in the U.S. can determine if you qualify or not within just 36 hours. In the past, you may wait for months only to get denied, but that’s no longer the case.

If the funding you need is not more than $350,000, this loan program allows you to know if you got the nod in less than two days.

Securing financing isn’t easy, but at least it’s no longer time-consuming. Especially if you work with an experienced SBA-preferred lender, you should expect to less paperwork too.

Eligibility Depends on Lender’s Discretion

Generally, the agency delegates just the credit decision, liquidation authority, and most of the servicing to lenders under its Preferred Lenders Program, and the SBA continues to check the borrower’s loan eligibility.

With this loan program, lenders may have the power to determine who’s eligible or not. This is still up to the SBA, but should the loan provider get the green light, you’re basically at the mercy of the lending institution.

SBA Guarantees Just Half of the Loan

The average percentage the SBA guarantees is about 75% to 85%; however, the maximum portion the agency promises to shoulder is only 50%. There’s no telling if most lenders are comfortable with this number to be lenient in terms of approval. It boils down to the amount you’re borrowing and the quality of your credentials.

The SBA Express is truly attractive in ways many loan programs are not. It may not be as flawless as you wish, but it could be the fitting solution to several financial problems.