As a small business owner in Florida, you know that getting cash to keep your business afloat can be challenging, especially in these uncertain times. Luckily, there are options available, like the popular Small Business Administration Rapid (SBA) 7(a) Loan program. The SBA created this program to help small businesses access affordable capital and grow their revenue without being exposed to unnecessary financial risk. If you need liquid assets for your business fast, you may be considering an SBA loan; but not just anyone qualifies for an SBA 7(a) loan, however–let alone the express loan. As a small business owner, you’ll need to know the difference between express SBA loans and standard ones. And if you need helping reaching your small business goals, the team at Cornerstone Capital is here to guide you in the right direction. Secure your future with one call and contact us today!
What Is a Rapid SBA Loan or Express Loan?
Like a standard SBA Loan, Rapid SBA Loans or Express SBA Loans fall under the Rapid SBA 7(a) Loan Program and have the benefit of offering faster funding times (typically within two weeks) and lower maximums for borrowing limits. Offered to small businesses operating within the United States, these loans are issued by the U.S. Small Business Administration (SBA) or other participating lenders approved by this organization.
One benefit of Rapid SBA 7(1) Loans is that they offer malleable terms for repayment as well as enticingly competitive interest rates for small business owners looking to get ahead financially. This repayment plan allows you to feel as though you are in control and provides peace of mind knowing you can afford the monthly payment without stress.
What Is a SBA 7(a) Loan?
The leading loan offered by the SBA Loan Program, the 7(a) Loan offers qualifying small businesses financial assistance–up to $5 million per loan for regular SBA Loans, and $500,000 for Express Loans. These loans can be used in the following ways:
- Total or partial hand off of business ownership
- Refinancing purposes to reassess and reconfigure business debt
- Purchasing furniture, equipment, machinery, and other necessities
- Purchasing, remodeling, or refinancing real estate
- Both short-term and long-term working assets
- Loans covering any combination of the circumstances listed above
Who Is Eligible for an SBA 7(a) Loan?
Not just anyone can apply for an SBA 7(a) Loan. To qualify, business owners must:
- Be a currently operating business working for profit
- Demonstrate good credit (depending on the lender, credit minimums can range from 620 to 700)
- Demonstrate a financial need that cannot be obtained through non-state, non-federal, or non-government sourcing
- Must be located within the United States
- Must qualify as a Small Business with the Code of Federal Regulations
- Must not fall under the ineligible business types, including non-profits and life insurance companies
What Are the Terms for a Rapid SBA 7(a) Loan?
It’s clear that SBA Loans cover a wide array of circumstances for small business owners looking to expand without going into the red–and while not everyone qualifies, the terms are happily not application-prohibitive. With a reputable lender like Cornerstone Capital, which has lent upwards of half a billion dollars to small business owners throughout the United States, you can count on flexible payments with fixed, easy to understand terms.
For small business looking to secure a Rapid SBA 7(a) Loan, business owners will enjoy:
- Variable rates starting at 3.75%
- Payments in monthly increments
- A term length of 10 years
- Assets in hand within 2 weeks
- Cornerstone’s Personal Guarantee
In order to be eligible, business owners can expect the following standards for qualification:
- No outstanding debts, liens, taxes, or judgements
- No bankruptcies within the last three years
- Business tax returns from the two years prior
- A credit score of at least 700
Repaying Your Express SBA 7(a) Loan
When it comes to finding the best possible lender to back your loan, you’ll want to make sure you’re opting for a firm with experience, flexible terms, and guarantees that protect your best interest. That’s why so many small businesses trust Cornerstone Capital with their business aspirations as they transition to the next phase of their growth journey. Generally, repaying loans with Cornerstone involves monthly payments of interest from the cash flow along with the principal in accordance with the loan. Exceptions to this include variable rate loans, in which the lender may offer changing terms and payments in accordance with changing interest rates.
Otherwise, Rapid SBA 7(a) Loans are repaid using monthly payments that remain the same if the interest rate also remains constant. This is otherwise known as a fixed-rate loan.
Regular 7(a) Loans versus Express SBA 7(a) Loans
While the terms for both regular 7(a) Loans and Express SBA 7(a) Loans can be somewhat flexible, there are certain characteristics business owners can expect from each respective type of loan. Here’s how loan applicants can decipher the difference between express and regular SBA 7(a) Loans.
Standard SBA 7(a) Loan
With a standard SBA 7(a) Loan, borrowers can expect to enjoy a ceiling of up to $5 million–whereas with Rapid SBA Loans, borrowers can expect limits of closer to $500,000 (from the Small Business Administration). These types of loans also offer guarantees of up to 85%.
Rapid SBA Loan
Rapid SBA Loans offer faster approval time than their standard counterparts. While typical SBA 7(a) Loans can take up to five to ten days to get the stamp of approval, express loans can get funds to a small business within two weeks. Express Loans guarantee up to 50%, in contrast with standard SBA Loans.
Get Your Business On Track Fast With Cornerstone Capitol’s RAPID-SBA 7(a) Loan Program
If you need a loan fast, Cornerstone Capital is a trusted leader in Florida’s business lending community, with an unwavering commitment to integrity, reliability, and transparency. They have lent more than half a billion dollars to small businesses since being founded, and have cemented their reputation as a reliable and trustworthy partner for entrepreneurs in need of financing. Rapid SBA 7(a) Loans are a popular option for businesses looking to secure funding quickly, while standard SBA 7(a) business loans offer more flexibility and potentially lower interest rates. Ultimately, the choice between these options depends on your specific business needs and goals. But when it comes to investing in the future of your enterprise, there is no better choice than Cornerstone Capital, with its personalized guarantees, and competitive rates that can help your business grow and thrive.
Unsure of what meets your planning and financial needs? Call to set up your appointment with our trusted team at Cornerstone Capital, today !