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How to apply for an SBA Loan
Throughout this manual SBA will cover 7a loans: (If you are not familiar with the basic 7A loans are, we recommend reading first SBA loans - the Ultimate Guide. )
Type | Maximum Turnaround Time | purpose | Maximum amount of |
SBA Express | 36 hours | Quick Approval | $350,000 |
Export Express | 24 hours | Quick Approval Exporters | $500,000 |
Patriot Express(program completed) | 36 hours | Quick approval for Veteran Owned Businesses | $500,000 |
CAP Line | 10 business days | Short term or seasonal financing needs | $ 5 million |
Export Working Capital | 10 business days | finance for export related transactions | $ 5 million |
international Trade | 10 business days | financing for the development of export business | $ 5 million |
Small / rural Lender advantage | 5 business days | support companies located in rural Areas | $350,000 |
Small Loan advantage | 5 business days | Set is pre-approval for companies in "underserved" Areas | $350,000 |
Community Advantage | 10 business days | Enabling Community Lender, loans for businesses in "underserved" Areas | $250,000 |
This item is the three "Express" examine loans (SBA, export, and Patriot Express) that offer an accelerated turnaround times to a "normal" 7A loan. Next, we will verify the CAPLines program, deals that a number of revolving and non-revolving credit lines. sections 5 and 6 focus on loans for exports and international trade integrated enterprise. the tour ends with sections 7-9, the focus on the "Advantage" loans, which expand are designed to credit for rural borrowers and increase the number of small loans to economically marginalized communities.
1. SBA Express
Overview: of SBA Express features an accelerated throughput time for SBA review, but with a smaller maximum loan amount the SBA will respond within 36 hours to your application, but the maximum that you only borrow can, is $ 350,000 more. than under the standard 7a Allowed million $ 5
maximum loan .: $ 350,000
maturity: nterest Standard 7a terms
I Prices .: lenders and borrowers can negotiate the interest rate. Rates may be fixed or variable and are the key interest rate bound (as in The Wall Street Journal), LIBOR or the optional peg rate (quarterly published in the Federal Register) and can be fixed or variable, but they can not exceed SBA maximums: can charge lenders to 6.5% above the base rate on $ 50,000 for loans of $ 50,000 or less and up to 4.5% on loans
processing time :. 36 hours
forms: Lender forms and SBA form 1919.
guarantees: lenders are not to take on loans required collateral up to $ 25,000; they can use their existing security policies for loans over $ 25,000 use of up to $ 350,000
The Bottom Line .: The SBA Express a good option for those which may be for loans under $ 350,000. The simplified application procedures and shorter throughput time make this an attractive alternative to the standard 7a. For more information, see here
2. Export Express
Overview .: The SBA Export Express program is an optimized method for loans and credit lines up to $ 500,000 SBA-backed financing to obtain. Lenders use their own credit decision process and loan documentation and the SBA provides an accelerated review of admissibility and provide a response within 24 hours. The means must be used to meet the company's ability to improve the products and services to export
maximum loan .: $ 500,000
maturity :. Standard 7a terms
Rate: Standard 7a conditions.
Processing time: 24 hours
forms: Lender forms and SBA form 1919.
guarantees: securities are based on the policies and procedures established by the lenders for its non-SBA-guaranteed loans
the bottom Line .: the SBA Express is a good choice for companies that start $ 500,000 or less in the form have or expand their export business loans. The simplified application procedures and faster approval turnaround make this loan similar to the SBA Express. For more information please clickhere
3. Patriot Express (Pilot Program) - Discontinued SBA
Overview .: the Patriot Express program is designed for small businesses that 51 percent or more owned or controlled by veterans
maximum loan .: [mustmeet Standard 7 SBA (a) loan eligibility and has 51% or more: $ 500,000
eligibility possession his / controlled by:
- veteran (other than dishonorably discharged);
- Active Duty Military: drain potential retiree within 24 months after separation, and within 12 months after discharge Active Duty Member;
- Reservist and National Guard ;.
- Current spouse from above or spouses of service member or veteran, a service connected disability died
Maturity: Standard 7 terms
rate :. Standard 7a terms
. SBA Processing time: within 36 hours
forms .: Lender primarily used their own forms and procedures
collateral .: lenders are not to take on loans required collateral up to $ 25,000; may need to take their existing security policies for loans over $ 25,000 use of up to $ 350,000, but for loans of more than $ 350,000 available collateral
The Bottom Line .: The Patriot Express is an excellent choice for service members and spouses. It offers similar terms expressly to 7a, but with a special emphasis on military families.
4.CAPLines
CAPLines Program has developed an umbrella to small businesses to help meet their short-term and cyclical working capital needs. It has five lines of credit: .. Season line, Contract Line Builders Line, Standard Asset-Based Line, Small Asset-Based Line
- season line borrower must use loans (or are in some cases increased labor costs associated) deals exclusively with the seasonal increase in receivables and inventory to finance; it may be, or non-revolving rotates.
- Contract Line. This line finances the direct labor and material costs associated with assignable jobs execute.
- Builders Line When. A small general contractor or builder construction or renovation of commercial or residential buildings , they can go directly to finance labor and material costs.
- Standard Asset-Based Line. This is not to meet to be able to credit standards in the context of long-term credit an asset-based revolving credit line for the company. It provides financing for cyclical growth, recurrent and / or short-term needs. Repayment comes from the current assets into cash to convert, which is transferred to the lender. continuously attract business from this credit line, determined on the basis of existing assets, and the repayment as their cash cycle. This line is usually used by companies providing loans to other businesses.
- Small Asset-Based Line. This is an asset-based revolving credit facility of up to $ 0,000. It works like a standard asset-based line except that some of the stricter service requirement be waived, the company can consistently show the provision repayment ability of cash flow for the full amount.
maximum loan amount .: $ 5,000,000 except for small asset-based -line, a $ 0,000 maximum
maturity: Each of the five lines of credit has a maturity of up to five years, but a shorter initial period can be found
interest .: Standard 7a terms
SBA processing time: .. up to 10 working days
forms: Standard 7a terms
collateral .: , the owner of at least 20 percent of the shares in the company are usually guarantee, the loan required. Insufficient collateral is not the only reason for the refusal of a loan request, but the nature and the value of these securities are in the credit decision factor
The Bottom Line .: CAPLines is a good choice for companies that are strongly influenced by seasonal business patterns. may be While this program is not faster or less complicated than the conventional 7a loans, there may be some advantages in terms or repayment options and interest rates. , For more information please clickhere
5. Export Working Capital
Overview: SBA Export Working capital program loans are for the companies need additional working capital developed potential export sales support. Approve The participating lender review and applications and the request to the SBA employees of US Export Assistance Center
maximum loan amount prior .: $ 5,000 000
maturity :. Standard 7a terms
Rate: Standard 7a terms
SBA processing time :. 5-10 days
forms: SBA EIB 84-1 plus attachments
collateral .: This loan is secured by the export sales generated financed with loans from the export-related inventory and income. The SBA also requires a personal guarantee for all with 20% or more ownership
The Bottom Line . This loan could be a good option if you run an export -focused business, short-term capital needs. Contact your local US Export Assistance Center to learn more about the Export Working Capital Program, and whether your business qualifies. , For more information please clickhere
6. International Trade
Overview: the international Trade loan Program offers companies term loans that begin exporting or resume. They are also available for companies that are adversely affected by the competition of imports. The main criterion is that the proceeds to be from the loan the borrower in a better position to allow needs to compete. , Funds will be used maximum loan amount for permanent working capital, refinancing or acquisition, construction, renovation, modernization, improvement or expansion of long-term assets
: $5,000,000
Maturity: The maturity of an International Trade Loan is 10 years for permanent working capital, up to 10 years for machinery and equipment, or the useful life of equipment (15 years not exceed) and up to 25 years for real estate.
Rate: interest rates between the borrower to be negotiated and the lender, subject to SBA caps. Prices can be either fixed or variable, and are attached to the base rate, as published in The Wall Street Journal, the one-month LIBOR rate or the optional peg rate, the Register is published quarterly in Federal. can for loans of more than $ 50,000 and maturity of more than seven years to charge the lender to 2.75 percent benchmark interest
SBA processing time :. Up to 10 companies. Days
forms: Standard 7a terms
collateral .: international Trade loans are generally funded secured by a first position or first mortgage on the property or equipment secured by the loan. funded a second lien position on the property by the loan can be accepted if the SBA the second lien position has determined sufficient collateral coverage. Additional security (if available) will be accepted to ensure that the loan is fully collateralized
The Bottom Line .: This loans can appeal to companies looking to expand their international trade, or been adversely affected by imports. Overall, however, this type of loan is quite similar to the standard 7a loans. , For more information please clickhere
7. Small / Rural Lender Advantage
Overview: The developed small / rural lender advantage initiative for small community and land-based lenders that make usually very few SBA loans. This program is part of an initiative broader SBA to promote the economic development of local communities to meet the challenges of population loss, economic dislocations over, and high unemployment. Key features include:
- Streamlined loan application and process for SBA loan of $ 150,000 or less; with limited additional information and analysis related to loans over $ 150,000.
- A simplified SBA loan eligibility questionnaire small or occasional lenders meet SBA participation conditions.
- loans processed centrally by SBA Standard 7 (a help) Loan Processing Center
- Lenders can transfer applications by fax and eventually online
maximum loan amount: .. $ 350,000
maturity :. Standard 7a terms
Rate: Standard 7a terms
SBA processing time: .. 3-5 days
forms: an input pages application for very small loans, with limited additional information on loans require about $ 50,000
collateral. All in the loan amount to available collateral (value liquidation)
The Bottom Line .: The program may be a good choice for people who want to use small local lenders who usually do not spend a lot of SBA-backed loans. The simplified application procedures and moderately accelerated processing times makes this a potentially attractive alternative to conventional 7a or SBA Express. , For more information please clickhere
8. Small Loan Advantage
Overview: This program is for small businesses and entrepreneurs in underserved communities to drive economic growth and job creation, to enhance access to capital. The main feature of this initiative is that it can receive a pre-qualification displaying the SBA lenders that the applicant company has sufficient credit, the applicant must justify full consideration for funding. If the pre-qualification comes back positive, the lender may complete a slim credit and make an official request to SBA for guarantee. Small Loan Advantage structured existing SBA to make to encourage lenders lower dollar loans that often companies benefit in underserved markets
maximum loan .: $ 350,000
maturity :. Standard 7a terms
Rate: Standard 7a terms
SBA processing time :. Most microcredit advantage loan will be approved in a matter of minutes by electronic submission. Not delegated small loans advantageous loan will be approved within 5 to 10 days
forms .: Small Loan Advantage has a two- pages application for borrowers. The lender includes a credit and can make their own promissory notes use
guarantees: .. Standard 7a terms
the bottom Line: the small Loan Advantage program is an excellent choice for companies looking for small loans and quick approval. The pre-approval process allows for almost instant approval of the SBA. , For more information please clickhere
9. Shared advantage (pilot program)
Overview: to make this pilot program to increase the number of loans in traditionally underserved communities by business-oriented organization aimed at SBA loan. These potential new SBA lending partners are Community Development Financial Institutions, Certified Development Companies and non-profit micro-credit intermediaries
maximum loan .: $ 250,000
maturity :. Standard 7a terms
Rate: Standard 7a terms
SBA turnaround Time .: 5-10 days
forms: Shared advantage functions streamlined paperwork, with a two-page application for the borrower
collateral .: Standard 7a terms
the bottom Line .: This pilot program is very similar to the small loans Advantage program, but it opens up the possibility of borrowing up by a more mission-oriented organizations. More information can be found here. For a list of community benefit approved lenders can be found here.
Final Thoughts
There are many special 7a loan programs that might be relevant to your business needs. We recommend you some local lenders contact to discuss various options.
are wondering how to get an SBA loan? Click here to get our free guide:
As for a SBA loan request
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