SBA Express Loans have a maximum amount of $350,000, and usually have a 5-7 year term. Loan proceeds can be used for all the same purposes as the SBA Advantage loan.
The SBA allows an Express Loan to be structured as either a straight term loan or as a credit line. At First National Bank Small Business Finance, we do not offer the Express Loan as a stand-alone product, but rather as an additional product along with an Advantage or Grow Loan as a credit line for working capital. Our typical structure on an Express Loan is to have a Working Capital Line that can be drawn on for two years, with any balance outstanding after two years to be repaid on a 5 year term for a total term of 7 years.
In general, the product advantages of a SBA guaranteed loan are:
- Lower Equity Injection requirements to keep more working capital in the business
- Longer term of loan to keep required payments lower every month
- Fully amortizing loans – no balloon payments or refinance required
- Combine many uses of funds into one loan (Advantage Loan)
- No loan covenants that may impact business operations