Here are different Loan Programs from us
When most small business owners think of an “SBA loan,” the SBA 7(a) loan program is what comes to mind. Its popularity is due to its flexibility, as these types of SBA loans have few limitations.
Funds can be used for almost any business purpose, whether you require working capital to sustain your operations, a loan to refinance existing debt or cash to invest in the expansion of your business.
There are different loan programs under the SBA 7(a) umbrella. Here are 3 of the most popular:
Standard 7(a) Loans
You can borrow up to $5 million through the standard SBA 7(a) loan program. Interest rates are negotiable, and loans typically reach maturity in 7 years or 25 years depending on how the money is used.
The SBA guarantees 75% for loans greater than $150,000 or 85% for loans up to $150,000. SBA loan interest rates are most often variable based on the current Prime rate plus an additional lender rate.
The amount of time it takes to finalize a standard SBA loan (from application to funding) varies by lender, but you can expect the process to take a minimum of 60 to 90 days.
Loan Amount
Up-to $5 Million
Interest Rate
Prime ( +A Maximum of 4.75% in Lenter Interest)
Term
7-25 Years
Time to Funding
60-90 Days
SBA Express Loans
If you’re looking for quick SBA loan financing, you might be disappointed to find that the SBA funding process is notoriously lengthy. However, SBA Express financing short-cuts this process and is the best choice for a fast SBA loan. When you submit an SBA Express loan application, you’ll receive a decision from your lender within 36 hours. And funds are deposited within your business bank account in as little as 30 days.
The trade-off for this speed is less borrowing potential and higher interest rates. Through the SBA Express program, you can acquire up to $350,000 over a 5- to 10-year term. The SBA will back up to 50% of this amount and lenders can tack on an additional 4.5% to 6.5% in interest depending on the amount borrowed.
Loan Amount
Up to $350k
Interest Rate
Prime (+ a maximum of 6.5% in lender interest)
Term
5-10 years
Time to Funding
30-60 days
SBA Lines of Credit (CAPLines)
CAPLines are ideal for business owners with short-term and cyclical working capital needs. Credit lines go up to $5 million and are available with a maximum repayment term of 10 years.
There are 5 distinct lines of credit offered under this program. They are the:
- Seasonal CAPLine
- Contract CAPLine
- Builders CAPLine
- Asset CAPLine
- Working Capital CAPLine
Funds from each program are expense-specific, meaning they can only be used to fund projects that fall within the credit line’s classification. For example, funds from a Seasonal CAPLine cannot be used to finance storefront renovations.
Loan Amount
Up to $5 million
Interest Rate
Prime (+ a maximum of 4.75% in lender interest)
Term
Not to exceed 10 years (5 years for Builders CAPLine)
Time to Funding
60-90 days