This SBA program provides working capital lines of credit for manufacturing, wholesale, services and retail businesses. May be used to finance inventory, accounts receivable, a specific contract and more.
- Terms of up to 7 years
- Competitive rates
- No application required
SBA Express Loan Guidelines
- For-profit business
- Must qualify as a small business according to SBA Size Guidelines (varies by industry type)
- Maximum SBA loan amount is $350,000
- Provided by Highland Bank
- SBA provides a 50% guaranty to Highland Bank
Use of Proceeds
- Working capital lines of credit
- SBA requires that Highland Bank take a first secured interest in business assets and/or a mortgage on real estate.
- Revolving lines of credit available up to 7 years. Initial term is 1 year with renewal options.
SBA Guaranty Fee
- SBA charges .25% of the guaranteed portion the first year on the line of credit
- During the second year 1.75% will be charged on loans of $150,000 or less and 2.75% on loans over $150,000
Interest Rate Spreads
- Rates can be fixed or variable. Maximum spread: For loans equal to or less than $50,000 the maximum spread is WSJ Prime +6.50%
- For loans over $50,000 and up to $250,000 the maximum spread is WSJ Prime + 4.50%