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From: The Small Business Adminstration
Time: 10:28:51 AM
For loans under $150,000, the SBA has authorized a service which gives fast track approval to financing. They have really streamlined the process and we suggest you take a look at it. We have included their discussion and the website location for you convenience.
Financing Your Business
Smaller Business Loans
Move over SBA FA$TRAK for SBAExpress
The SBAExpress -
Makes it easier and faster for lenders to provide small business loans of $150,000 or less. Allows lenders to use their own forms and processes to approve loans guaranteed by the U.S. Small Business Administration. Provides a rapid response from the SBA - within 36 hours of receiving your complete application. Count on it! Lets lenders take advantage of electronic loan processing. Helps lenders provide smaller revolving loans.
How it Works
Maximum Loan Amount
For More Information
How It Works
Lenders participating in SBAExpress can -
Use their own forms and processes to approve loans in amounts up to $150,000, Provide minimal paperwork to the SBA to obtain a 50 percent guaranty on the loan, and Take most servicing actions without prior approval by the SBA Lender Participation
You may be eligible to become an SBAExpress lender if -
You are currently in the SBA's Preferred Lenders Program or, in selected geographic regions, participate in the SBA's 7(a) Lending Program; and, You meet other participation and loan portfolio standards. Contact your SBA district office to find out if you are eligible or if you need more information.
The SBA's general policy requires guaranteed loans to be fully secured; with SBAExpress, lenders may approve unsecured lines of credit up to $25,000.
Loan maturity generally is five to 10 years, and up to 25 years for fixed-asset loans. Length of time for repayment depends on the borrower's ability to repay and the use of the loan proceeds.
Lenders and borrowers can negotiate the interest rate. Rates are tied to the prime rate (as published in the Wall Street Journal) and may be fixed or variable, but they may not exceed SBA maximums:
2.25 percent over prime, for loans of less than seven years, and 2.75 percent over prime, for loans of seven years or longer. Loans under $50,000 may be subject to slightly higher rates.
Maximum Loan Amount
The maximum loan amount for SBAExpress is $150,000.
Small Business Eligibility
SBAExpress loans help small businesses start, build or grow. To qualify for the program, a business must meet the SBA's size standards. These standards are based on the average number of employees over the preceding 12 months or the average sales over the previous three years. The agency publishes size standards for specific standard industrial classification (SIC)codes:
Manufacturing - from 500 to 1,500 employees Wholesaling - 100 employees Services - from $2.5 million to $21.5 million in annual receipts Retailing - from $5 million to $21 million in annual receipts General Construction - from $13.3 million to $17 million in annual receipts For More Information
The SBA has offices located throughout the United States. For the one nearest you, look under "U.S. Government" in your telephone directory, or call the SBA Answer Desk at 1-800-U-ASK-SBA. To send a fax to the SBA, dial 202-205-7064. For the hearing impaired, the TDD number is 704-344-6640. For information on your rights to regulatory fairness, the telephone number is 1-800-REG-FAIR.
To access the agency's electronic public information services, you may contact:
SBA OnLine: electronic bulletin board -
modem and computer required
1-800-697-4636 (limited access)
1-900-463-4636 (full access)
202-401-9600 (D.C. metro area)
Internet: using uniform resource locators
SBA Home Page: www.sba.gov
SBA gopher: gopher.sba.gov
File transfer protocol: ftp.sba.gov
U.S. Business Advisor: www.business.gov
For a free copy of The Resource Directory for Small Business Management, a listing of for-sale publications and videotapes, call your local SBA office or the SBA Answer Desk.
All of the SBA's programs and services are provided to the public on a nondiscriminatory basis.
Last Modified: 9-28-98