Navigating SBA Loan Options: Which Loan is Easiest to Get Approved For?

If you are running an exporting company in the United States and are seeking an SBA loan under $350,000, where you are either a US Citizen or have a Green Card, you may be considering various options such as SBA Express, SBA 7(a), and SBA Export Express loans. This article will help you understand the differences and ease of approval for each type of loan.

Understanding SBA Loan Types

When it comes to SBA loans, there are several types to choose from. Below, we will explore the similarities and differences between these loan options, helping you make an informed decision based on your business needs.

Express Loans

Express loans are designed to provide quick financing for small businesses. With a turnaround time of 3 to 6 weeks and a maximum loan amount of $350,000, these loans are ideal for those who need money quickly. However, they require less extensive documentation compared to a standard SBA loan.

Key Features of SBA Express Loan:

Maximum loan amount: $350,000 Processing time: 3 to 6 weeks Documentation required: Minimal

Express loans can be obtained by companies that export their products, making them a suitable option for exporting companies.

SBA 7(a) Loan

The SBA 7(a) loan is a more traditional type of loan with a higher guarantee from the SBA, ensuring that 90% of the loan amount is guaranteed. This feature often makes the lender somewhat more flexible with its underwriting criteria, potentially resulting in a faster approval process.

Key Features of SBA 7(a) Loan:

Loan amount: $50,000 to $5 million Processing time: 45 to 90 days Guaranteed: 90% by the SBA

While SBA 7(a) loans are generally more flexible and can be easier to get approved for, they do require a bit more documentation and a longer processing time compared to Express loans.

No Such Thing as SBA Export Express Loan

It is important to note that there is no such type of loan as an "SBA Export Express Loan." An SBA Express Loan can be obtained by a company which exports its products, but no separate category for "Export Express" exists.

User Caution: If an 'SBA professional' informs you that there is such a loan, it is advisable to seek a second opinion from another SBA professional or trusted financial advisor. There are reputable SBA recognized preferred providers who specialize in such matters, and they can provide the guidance you need.

What to Consider When Applying for an SBA Loan

The ease of approval for an SBA loan will vary based on several factors, including your loan amount, the nature of your business, your financial history, and your collateral status. Here are some key factors to consider:

Loan Amount Requested: SBA Express loans have a maximum cap of $350,000, while 7(a) loans can range from $50,000 to $5 million. Business Type: Different businesses may have different requirements and approval processes. Business Income History: A strong financial history can enhance your chances of approval. Collateral Availability: Access to collateral can significantly impact the loan approval process.

In some cases, a 7(a) loan may be the better option, especially if your loan amount is larger and your business has a more complex structure.

Conclusion

When it comes to determining which SBA loan is easier to get approved for, the answer can be variable depending on your specific business needs and circumstances. We recommend contacting a preferred provider to discuss your unique situation and determine the best course of action.

Where to Find Help

There are numerous resources available online to help you navigate the SBA loan process. Many of these providers specialize in SBA loans and can offer guidance and support to help you secure the financing you need.

For More Information, visit the official SBA loan page.