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Re: I have some interest in an SBA Loan,
Chapman, Spira & Carson - Disscusion

From: The Small Business Adminstration
Date: 4/16/99
Time: 10:28:51 AM
Remote User:


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

Lender Participation



Interest Rates

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.

Interest Rates

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:

SBA gopher:

File transfer protocol:


U.S. Business Advisor:

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.

CO-0080 (08/98)

Last Modified: 9-28-98

Last changed: March 17, 2000