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Just Elementary, Inc. » Business Tips, SBA » SBA Express Loans under $250,000 Easier to Get

SBA Express Loans under $250,000 Easier to Get

A great article in the LA Times points out that the SBA loan programs is getting some needed modifications.  We’ll specifically cover the smaller ‘Express’ Loans.

‘Express Loans’ is a term that describes SBA loans that are up to $250,000 in value.  Express loans have been historically hard to get for a couple of reasons.  Number 1, there is not a huge profit margin to them for a bank, and number 2, the bank had 50% exposure on the loan, as the SBA guarantee was only 50%.



Under new SBA guidelines set to go in effect sometime in the summer of 2011, the SBA Guarantee will be 85% on Express Loans.  There will be two versions of Express Loans under the soon to be implemented guidelines.  One is called the ‘Community Advantage’ loan program and the other is being called ‘Small Loan Advantage’ loan program.

The Community Advantage loan program is designed to be given out by Non Profit Lenders, while the Small Loan Advantage loan program is for banks to give out.  Also, the Community Advantage loan is for specific circumstances such as veteran borrowers and new businesses.  The Small Loan Advantage loan program is aimed at a broader use, so it is for more borrowers.

Don’t think for a moment that it is as easy as walking into your regular bank and getting these loans by just asking for them.  As we have written previously, you have to know a bank’s appetite for certain loan programs in their lending portfolios.

Call (323) 213-9193 or email us for pointers and recommendations on where to go for your specific loan needs.

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