OVERVIEW OF THE SBA EXPRESS LOAN
The Small Business Administration (SBA) offers the SBA Express Loan for franchise owners needing quick financing up to $150,000. This loan features a simplified application and fast approval, with funds available in as little as 30 days.
What are some general qualification standards for an SBA loan?
• Cash or 401(k) ROBS contribution of 10% of the total project
• Favorable credit score of 680+
• No current credit collections, bankruptcies, or other pending litigation
• Must be US citizen or permanent resident
What is an SBA loan for franchising? An SBA loan for franchising is a loan provided by a lending institution and partially guaranteed by the SBA, designed to help franchisees obtain the necessary capital to start or expand their franchise business.
What can I use the loan funds for as a Franchisee? The funds can be utilized for franchise-related expenses, including franchise fees, working capital, equipment acquisition, inventory, or other startup costs listed in the FDD.
How much can I borrow with an SBA Express Loan for a franchise? The maximum loan amount is $150k.
What are the typical terms and interest rates for SBA loans for franchises? 10 year loan terms, with rates tied to the Wall Street Journal Prime lending rate.
How long does it take to get funded for an SBA loan for a franchise? SBA Express loans can fund in 30 days or less from the day they are introduced to the bank.
Low Cash injection of 10%
NO Personal collateralization (NO LIEN on your personal property
Loan closes QUICKLY, 20-35 days
How soon can I access the funds for my franchise? As soon as you close your loan, which can be in as little as 30 days or less, you will have access to the full loan amount, less any outstanding franchise fees or payments to vendors.
Are collateral requirements lower for franchise loans? No personal collateral requirements, but the bank will take collateral of the business assets.
Ready to explore your options? Start here!