If you need an SBA loan worth half a million($500,000), you will need to apply for an SBA Express loan. SBA Express loans allow small business owners to get access to loan funds and lines of credit to:

·      Buy real estate

·      Finance equipment

·      Refinance debt

·      Cover operating costs and more


SBA Express loans max out at $500,000; however, as the name suggests, they are much faster to get approved for than other SBA loans. Still, you are required to first meet the SBA’s application requirements to qualify and get approved for an SBA Express loan.


SBA Express loans are small business loans that fall in the category of the SBA 7(a) loan program and can be used for a variety of purposes, including working capital and equipment purchase, real estate, or existing business.


Types of SBA Express Loans

Depending on your business type, you can choose:

·      Standard Express loan

·      Export Express loan (available for small export businesses)


For both types of loans, the maximum amount you can loan extends up to $500,000 at maximum.


The terms for repayment vary based on the type of loan and purpose, for instance, 7 years for lines of credit, 25 years of real estate purchase, and 5 to 10 years for other loans.


Interest rates of SBA Express loans can vary based on the:

·      Lender

·      Qualifications of the borrower

·      The Size of the loan


However, interest rates for these loans don’t exceed:

·      Prime rate plus 6.5% for loans of $50,000 or less

·      Prime rate plus 4.5% for loans greater than $50,000


How to Get SBA Express Loans

Just like any other SBA’s 7(a) loan, you need to reach out to an expert who works with SBA’s Preferred Lending Partners. These loans are backed by the SBA with a percent up to 50% for Express Loans and up to 90% for Export Express Loans.


To apply for an SBA Express loan, you must use the SBA form 1919 along with the forms and procedures of the lender.


Typically, the down payment for SBA 7(a) is 10%but it can be up to 30% for startups and other reasons. Besides, loans over$25,000 also come with collateral requirements.


The SBA responds to the applications of SBA Express loans within 36 hours and to the applications of Export Express within24 hours. However, the eligibility and credit decisions are made by the SBA’s approved lender.


How to Get a Down Payment for a $500,000 SBA Loan

As with any other loan, most SBA loans also require you to make a down payment because they want to know that you are serious about this.


So, before you get an SBA Express or Export Express loan of $500,000, you need to ensure that you have sufficient amounts to fulfill the requirements of the down payment.


Businesses that have the weak cash flow or low-value collateral are required to make higher down payments.


Here are a few tips on how to manage the down payment quickly for an SBA Loan of $500,000:

·      Many people believe that they have enough cash reserves and find it later that it is not sufficient. So, first, evaluate how much personal savings you have and how much of your savings you can use for down payments after putting aside the cash for emergencies.


·      In some cases, asking an investor to cover the down payment may work. So, instead of asking for the full loan amount, you can find an angel investor and ask him/her to cover only the down payment. Take note that some angel investors may having a condition of owning a percentage of your company.


·      If you already run a small business, look for ways where you can save and cut costs. For instance, working with independent contractors can save you more than hiring a full-time employee who you need to give the salary plus benefits.


·      Try to save money on traveling and transportation costs by having a meeting via online conference platforms such as Zoom, Webex, etc.


·      You can rent also a part of your property to increase the cash flow and make savings quickly.


·      You can also gather some cash by selling some personal assets that you don’t need now or in the near future. Assets such as a car, fitness equipment, platinum jewelry, shares, land, etc. often have good resale value.


·      If you can afford it, you can also turn to your retirement savings plan to cover the loan down payment. A Rollover as a Business Startup (ROBS) plan allows you to invest the funds in your retirement account into your down payment for an SBA Express loan. Under this plan, you will not be withdrawing money; instead, your retirement funds are rolled into another account, which buys shares into your corporation. Hence, this plan is available for only C corporations as this business structure enables a company to sell stock. Before choosing this option, remember that it could be a great risk if your business fails.


Is there any way to get an SBA loan without a down payment?

Yes, you can get an SBA loan without down payment but then it would not be an SBA Express Loan or Export Express Loan that allows you to get a fund of $500,000. Some SBA loan programs don’t require a down payment, such as the SBA disaster loan program. Remember that though lenders don’t require a down payment from you, they will be placing more weight on your business plan and financial statements.


Get Professional Assistance for SBA Express Loans Now

Do you need help with getting half a million dollar worth of SBA loan? Or, do you need help with making a down payment for SBA loans? Whatever it is you need for your small business financing, contact Royale Capital. We work with SBA’s approved lenders to help you fund your business with ease.


We will consult you on different types of SBA loans that you are eligible for, help you find the best option for you and your business, and assist you throughout the application process. Did you know getting SBA loans also means you will get to enjoy access to SBA’s vast network of resources, including mentorship and training opportunities? Yes, it is true.


So, don’t wait anymore. Contact Royale Capital for SBA financing now.