Applying For An SBA Express Loan? Here Is Some Things You Need To Know
The application process for SBA Express loans is similar to any other business loan. You will need to determine your business’s funding needs, check your eligibility and compare lenders before applying.
- Determine your business’s needs. Express loans are significantly smaller than other SBA loans, but many small businesses will benefit from loans of $500,000 or less. If you need more funding, you will need to consider a different loan option.
- Check your eligibility. You will meet the SBA’s small business size standards and operate for profit, along with other SBA and lender requirements to qualify for an Express loan.
- Fill out SBA Form 1919. In addition to other documentation, you will need to complete Form 1919. This form requests information about your business and personal information about each owner.
- Compare at least three lenders. Because of the wide variety of lenders that work with the SBA, you should compare three or more lenders before you apply. The SBA Lender Match tool can help you find a lender that fits your business.
- Apply and submit documentation. Once you find a lender and have completed Form 1919, you will need to apply for the loan and submit supporting documents that show your business’s finances, assets and how it will utilize the funding.
- Receive a loan decision. You should receive an approval decision from the lender within a few weeks, based on the lender’s usual timeline for processing loans.
Alternatives to SBA Express loans
The SBA requires business owners to exhaust other forms of financing before they can qualify for any 7(a) loan, including Express and Export Express loans. There are alternative lending options for your business that may be easier to qualify for, including:
- Fast business loans. A fast business loan can take a variety of shapes. Some are term loans, while others are lines of credit. Whichever you go with, you can expect a quick application process and a decision within a few days in most cases.
- Business credit cards. For smaller everyday expenses, you may want to consider a business credit card. These offer more flexible financing options, a less strenuous application process and may offer rewards for frequent use.
- Bad credit business loans. It can be more difficult to qualify for an SBA loan — especially if your business doesn’t have its own established score. So you may want to consider a bad credit business loan if you have a lower personal credit score.
- Short-term business financing. While not exactly loans, options like merchant cash advances and invoice factoring are quick options for business owners. But they will come at a higher cost than more traditional financing.
The Bottom Line
SBA Express and Export Express loans are ideal for small businesses needing fast funding. While they can be more difficult to qualify for than other fast business loans, their competitive rates and government-backed status make them a safe option for your business.