To help small business owners in their business start-up and expansion SBA offers the program called express loan. It takes less time in approval and can also be applied without SBA€¬€s prior credit approval. Lenders or banks have an authority to do the credit analysis and basing on their credit report SBA further gives loan guarantee of 50%.

SBA express loan program is designed to speed up the lending procedure for borrowers. Express loan can be obtain for purposes like start-up business, business expansion, working capital, purchase of inventory, equipment, and machinery, business acquisition and so on. However, small business entrepreneurs must follow the guidelines prepared to acquire express loan. The types of such loans are either term loan or line of credit.

A SBA express business loans gives authority to banks and lenders for loan approval. However, SBA also provides 50% guarantee for sanction. The process also not required any additional paperwork. Therefore, this not only brings flexibility but also accelerates the entire course.

Furthermore, there are other advantages and regulations for borrowers to pursue to get the real benefits of SBA express loan.

Rate of interest: A borrower can get the benefit of reasonable interest rate. It can be fixed or variable depending on a type of loan.

Collateral: The purpose of loan will decide the collateral whether it is property, real estate, or any business asset. Besides, if a business has a healthy cash flow then collateral terms become a bit flexible.

Guarantee program: 50% guarantee from SBA to PNC Bank and take advantage of up to $350,000 on loan amount.

Loan maturity: It differs as per the usage. The tenure of working capital loan is 5-7 years, equipment loans 7-15 years, and real estate 15-25years.

Eligibility: SBA express loans can be entitled to proprietorship firms, partnership, and corporations.
What criterion SBA follows to approve the express loan?
Although, the evaluation of loan approval is usually done by the lender yet, SBA also reviews borrowers€¬€ credit analysis. This includes debt and equity of a business, what collateral is used to against loan, and the borrower€¬€s credit history to know his capability for repayment. SBA generally relies on the credit score report submitted by the credit agency.

How does a borrower get benefitted?
Since, one of the reasons to take express loan is business expansion through modernize facilities, buying furniture, equipment, and machinery etc. The borrowers get the benefit of easy cash flow with low interest rate. To be further advantaged, a borrower can also refinance the existing debts. Indeed, the acquired loan amount can be used for commercial real estate construction and also for a new business.

How to get through the loan application process?
The loan application can be submitted online by the borrower or by participating bank partner. The second step includes the submission of relevant documents that also includes business plan. The borrower would receive a response of his application once the documents and business plan are reviewed.