Rapid Working Capital Loans Up To $150,000

Home Rapid Working Capital Loans Up To $150,000

As a small business owner, you understand that having access to liquid capital can be an enormous asset–especially when it comes to taking calculated risks in the pursuit of even higher rewards. For many businesses, this quick cash comes in the form of a loan like an SBA 7a Loan–but what happens when you need this capital, fast–or within two weeks? This is where the Rapid SBA 7a Loan comes in, as well as reliable lenders like Cornerstone Capital. We work hard to ensure our clients see us not only as a trusted advisor in their corner but also as reputable, transparent lenders. Want to take your business to the next level? We’re here to support you. 

What Is a Rapid SBA 7(a) Loan? 

Fortunately, there is a response to the pressing need most businesses face for liquid assets at some point during their development. It’s natural to need liquid cash during the expansion process–and even more so, to need it relatively quickly. Enter the Rapid SBA 7a Loan–many corporations’ solution to the pressing need for cash and the agility that that brings. 

What Is the Difference Between a Rapid SBA 7a Loan and a Standard One?

Like an SBA 7a Loan, a Rapid SBA 7a Loan (sometimes referred to as an SBA Express Loan) offers a partial guarantee from the U.S. Small Business Administration, and is known for its flexible terms of repayment and competitive interest rates. The distinction is they are known for having faster timelines and lower borrowing maximums than the original SBA 7a Loan. They also offer less of a guarantee for SBA Express Loans at roughly 50%, whereas standard SBA 7a Loans are often closer to 85% guaranteed. 

SBA 504 Loan vs. 7a

The Small Business Administration offers several different kinds of loans–and a common question business owners have is understanding the distinction between SBA 504 versus the SBA 7a Loans. While both loans originate from the SBA, and both require that the applicant qualifies as a for-profit small business under the SBA’s regulations, there are some distinctions (from the Small Business Administration). For example, the SBA 504 Loan applicant must:

• Have a net worth under $15 million
• For two fiscal years preceding the application, the applicant must have a net annual income of less than $5 million after federal taxes
• Use the loan for “assets that promote business growth and job creation,” not working capital or consolidating debt; examples of appropriate applications of the SBA 504 Loan include:
  • Land or land improvements
  • Renovations
  • New facilities
  • Long-term equipment and machinery

 

On the other hand, the SBA 7a Loans can be used in the following ways (via Small Business Administration):

• Multiple-purpose loans, including any listed below
• Complete or partial changes of ownership
• Installing and purchasing equipment, machinery, furniture, supplies, and equipment
• Refinancing business debt
• Real estate acquisition, refinancing, and renovation ventures
• Short-term and long-term working capital 

 

Who Qualifies for a Rapid SBA 7a Loan?

In order to qualify for an SBA Express Loan, a small business must have several discerning characteristics. These include the following:

• They must be a profit-driven business operating within the bounds of the United States (including legal territories)
• They must have “reasonable” equity to invest in the loan
• They must meet the Small Business Administration’s definition of a small business
• They must not be able to access their desired capital from non-government resources
• They must have a credit score of at least 650 or 700, depending on the lender
• They must have at least two years in their industry under their belt, with a strong financial history and no bankruptcies within the last three years
• They must be able to provide their tax returns for the last two years
• They must not have any outstanding liens or similar issues

Rapid SBA 7a Loan FAQ

SBA 7a Loans can seem overwhelming for the average business owner just looking to expand their business–let alone the SBA Express Loan. Here at Cornerstone Capital, we take care to guide you through the process so that there is minimal stress and overwhelm. Rest assured we’re here to make sure you understand just what it is you’re signing up for–as well as how to pay it back without the deal going sour. Trust us to simplify the process and minimize stress for you! You’re not alone if you’ve still got questions about Rapid or regular SBA 7a Loans. Here are some Frequently Asked Questions! 

Are SBA 7a Loans Fixed Rate?

For both regular SBA 7a Loans and their Express cousins, these loans can be fixed rate or variable, depending on the amount of capital requested. Either way, the rate cannot excede the SBA maximum rate for a regular SBA 7a Loan. (For more on this, visit the SBA’s website here!)

Are SBA 7a Loans Assumable?

The short answer is yes; SBA 7a Loans are assumable. However, it is not recommended to apply for an express loan if you are planning on transitioning your business in this way in the near future. For more information, check out this resource. 

Can You Refinance an SBA 7a Loan?

Typically, borrowers cannot refinance an SBA 7a Loan, let alone a rapid SBA 7a Loan. This is simply not permitted within the bounds of the loan. 

Will SBA 7a Loans Be Forgiven?

It is not a good idea to default on your SBA 7a Loan. Most SBA Loans require a personal guarantee from the business owner–and if this is broken, the business defaulting on their loan could be sued for their personal property. That being said, it’s important to do your due diligence before signing on with a lender to ensure that they are the right fit for your needs. It’s better to find a lender that will work with your budget in a realistic fashion than one that will approve deals you should not be qualified for. At Cornerstone Capital, we’ll work with you to take your business to the next level–at your pace and your budget. 

What to Look for in a Rapid SBA 7a Loan Lender

Small business owners often require quick access to funding to propel their business to greater heights. The Small Business Administration (SBA) offers several loan options to help small businesses obtain the funds they need to succeed, such as the Rapid 7a Loan. Finding the right lender to quickly process your loan application can be challenging–but it is not impossible. The top five characteristics to look for in a lender include the following traits!

Transparency

Perhaps the most crucial aspect to look for in a lender is their honesty, integrity, and transparency when it comes to ensuring you understand exactly what it is you are signing up for. Nobody likes surprises–especially when a monthly bill is due–so take care that you not only understand your lender but feel that they are working for and with you. At Cornerstone Capital, we pride ourselves on being completely transparent throughout the entirety of the process–from our initial conversation to any questions you might have along the way. You shouldn’t feel perplexed or intimidated by your lender–allow us to take command and guide you through a low-stress lending experience!

Experience

An experienced lender with extensive knowledge of the SBA 7(a) loan program can expedite the loan application process. A lender who has processed several loan applications successfully understands the lender’s expectations and requirements, making it easy to navigate the loan application process. An experienced lender will also provide expert guidance on the loan program, including the eligibility requirements, the loan amount, and repayment terms.

Positive Testimonials

Positive reviews and testimonials from other borrowers are a good indication that a lender is reputable and has a good track record. Look for a lender with many positive customer reviews to ensure that other small business owners have had great experiences working with them. You can also do research on the lender’s website or other review sites to see what past borrowers have to say about their experiences.

Speed

One of the primary reasons for choosing a rapid SBA 7(a) loan lender is to get quick access to funding. A lender who processes loan applications quickly can get the funds to the borrower much faster, helping them meet their financial needs. Look for a lender who can process your loan application in the shortest time possible without compromising the quality of service.

Expert Guidance

An exceptional SBA 7(a) loan lender understands the intricate details of the loan program and can offer expert guidance on how to make the most of the loan. They should also be able to advise borrowers on how best to utilize the funds to grow their businesses. Expert guidance from a lender can go a long way in ensuring that the borrower succeeds and can repay the loan on time.

Rapid SBA 7a Loan Opportunities with Cornerstone Capital

Understanding the nuances of different loan types, including the differences between a standard SBA 7a Loan and an SBA Express Loan, can help when it comes to applying for aid–but it’s not necessarily the most important factor. If you find a lender you trust, you can work with them to get your questions answered while enjoying a transparent, minimally stressful experience. 

 

A great lender will put the borrower’s needs first, communicate clearly, and process loan applications quickly without cutting corners. By choosing the right lender, small business owners can secure the funding they need to grow their businesses and increase their bottom line. At Cornerstone Capital, we are here to help business owners carry their operations to the next level of development while increasing their financial agility and resilience. Set your dreams in motion with us today and get your questions answered by our knowledgeable team!