StrongTerm Expedited SBA Loans Explained
In the world of small business financing, entrepreneurs often find themselves caught between the promise of growth and the complexities of securing necessary funds.
Enter the StrongTerm Expedited SBA loan—a groundbreaking solution that marries the benefits of the U.S. Small Business Administration’s (SBA) 7(a) loan program with the speed and simplicity that modern businesses demand.
In this guide, we dive into the essence of the StrongTerm Expedited SBA loan, unraveling its unique advantages, streamlined application process, and the transformative impact it can have on businesses looking to seize opportunities without the traditional hurdles.
Join us as we explore how this loan program is redefining the lending landscape, offering small businesses a faster, more accessible path to financial success.
Table of Contents
Expedited SBA 7(a) Loans
What is an SBA 7(a) loan?
An SBA 7(a) loan is a type of loan program offered by the U.S. Small Business Administration (SBA) to support small businesses in accessing financing. It provides loans to small businesses for various purposes, including working capital, expansion, equipment purchase, and refinancing existing debt.
The SBA doesn’t directly lend money; instead, it guarantees a portion of the loan provided by approved lenders, which reduces the risk for the lender and makes it easier for small businesses to secure funding.
The 7(a) loan program offers favorable terms such as longer repayment periods and lower down payments compared to traditional loans, making it an attractive option for entrepreneurs seeking capital to grow and sustain their businesses.
Now let’s discuss what sets StrongTerm’s Expedited 7(a) loans apart.
How is this loan different?
StrongTerm Expedited SBA loans are a loan program from StrongTerm that allows small businesses to access up to $150,000 with the great terms of an SBA 7(a) loan without the hassle typically associated with SBA loans. StrongTerm has partnered with banks carrying “SBA preferred lender” status to create a “fast lane” for certain businesses with solid business credit that meet certain criteria.
StrongTerm matches businesses with the lender in the program most likely to approve their loan and then handles the loan process end-to-end, ensuring a smooth, easy funding experience guided by an experienced expert.
Benefits of StrongTerm’s Expedited SBA Program
Less Paperwork
Historically, SBA loans are notorious for burdensome paperwork requirements. On the other hand, Expedited SBA loans require as little as a 15 minute phone call, tax returns for the business and owner(s), recent checking statements, and photo ID(s) to confirm identity.
No P&L or balance sheet is required, unlike most SBA loans
Additional documents needed for closing are requested on a case by case basis, but typically are limited in scope.
Faster decision
After your application call and the receipt of tax returns, bank statements, and ID, your StrongTerm advisor will return with a preapproval decision in as fast as 24 hours.
Preapproval means that your application reaches the minimum requirements for the program, and all credit and underwriting scores meet requirements for approval. Usually once preapproved, any remaining items needed for closing will be collected and the borrower will receive a final approval after locking in a hard credit pull.
While not a guarantee, usually a preapproved borrower will be final approved as long as they complete the process, their credit scores don’t drop, and nothing unexpected comes up on required searches prior to closing.
Low payments vs. other fast options
While these loans require minimal paperwork, clients still receive the benefit of a low rate and a fully-amortized 10 year repayment schedule with no prepayment penalty.
This long-term payback structure allows you to invest in your business’s growth today without suffocating your cash flow with high monthly payments.
Monthly payments can be up to 90% lower than comparable short-term options from online and alternative non-SBA lenders
Low rates
StrongTerm Expedited loans offer variable interest rates 2.75-4.75% over the prime rate, meaning that your rate would currently be between 11.25% and 13.25%. This rate will move in unison with Federal Reserve rate changes, so you will receive the benefit of lower rates and payments as interest rates fall to historical averages.
Credit-based underwriting
Traditionally SBA loans have been underwritten primarily off of business and personal cash flow. This blocks many creditworthy business owners from accessing the best terms on the market, and slows down the process as the underwriter must complete extensive calculations to confirm cash flow ratios.
StrongTerm expedited loans do not use traditional cash flow underwriting, meaning that business owners can take advantage of strong business and personal credit to get approved for the funding they deserve.
Explore options without a hard credit pull
Business owners can receive a preapproval decision on a StrongTerm expedited loan with only a soft credit pull that does not impact FICO score.
Tangible Feedback
If you fall short of the approval thresholds for a loan, your StrongTerm expert will provide guidance on how to improve your underwriting scores to hopefully achieve approval further down the road.
Clients can apply for an expedited loan once per month, allowing ample opportunity for future funding even if they are not approved upon initial application.
What can I use my expedited SBA loan for?
The StrongTerm Expedited SBA program is versatile and can be used for a number of business uses. Here’s how our fast, hassle-free loans can transform your business.
Hiring
Build a skilled and reliable team to take on more projects and meet the growing demands of your expanding business.
Supplies
Secure the resources you need for upcoming work without compromising on quality or timeline.
Marketing
Boost your visibility and outreach. Invest in marketing strategies to showcase your expertise and attract new clients.
Payroll
Ensure your hardworking team is well-compensated, fostering loyalty and dedication for long-term success.
Accounts Payable
Use your loan to get on top of your payment cycle and foster strong relationships with vendors and suppliers.
Operational Expenses
Maintain a healthy cash flow to navigate through fluctuations and seize unforeseen opportunities that come your way.
How do I qualify for an expedited SBA loan?
The program’s underwriting models use business and personal credit to determine creditworthiness. As a result, the best way to improve your approval chances is to improve these scores by paying vendors on time, reducing personal credit balances, and avoiding unnecessary hard credit inquiries from other lenders.
Typically, approved borrowers have personal FICO credit scores of 680 or above and solid business credit scores
Unsure whether you have strong business credit? No worries! StrongTerm can evaluate where you stand, and what options are available to you without requiring a hard credit pull.
Who can get an expedited SBA loan?
Businesses eligible for funding include for-profit businesses with 2 or more years in operation, no prior defaults on government loans, and no outstanding business or personal tax balances.
Who is ineligible?
The following industries are ineligible for this program, but may be eligible for other options on StrongTerm’s platform.
Gambling and Betting
Businesses primarily engaged in gambling, gaming, or betting activities are generally ineligible for SBA assistance due to the perceived risks associated with these industries.
Cannabis
While the legal landscape for cannabis is evolving, businesses involved in the production, distribution, or sale of marijuana (both medical and recreational) are often restricted from accessing SBA funding due to federal regulations.
Lending and Investment Activities
Businesses that primarily engage in lending, investment, or speculation activities are typically ineligible for SBA assistance, as they are not considered directly involved in productive activities.
Pyramid Schemes and Multi-Level Marketing
Businesses that operate as pyramid schemes or rely heavily on multi-level marketing structures are often restricted due to concerns about their legitimacy and sustainability.
Adult Entertainment
Businesses involved in explicit adult content or adult entertainment industries are generally ineligible for SBA funding due to the sensitive nature of their activities.
Certain Real Estate Activities
Businesses engaged in speculative real estate activities, such as buying and holding property for future appreciation, might be restricted from SBA assistance.
Certain Speculative Activities
Businesses primarily involved in speculative activities, such as oil exploration, mineral extraction, or commodities trading, might face restrictions due to the inherent risks involved.
Political or Lobbying Activities
Businesses engaged in political or lobbying activities are generally ineligible for SBA assistance.
What to expect when applying
After deciding to proceed with an application, clients are prompted to schedule a quick 15 minute call to assess their business’s needs and collect required information needed for the application
Clients must then upload tax returns and recent business checking statements to the StrongTerm portal. All documents provided to StrongTerm are protected with bank level encryption to ensure data security.
Why StrongTerm?
Experienced advisors
The StrongTerm team consists of experienced professionals who seek to provide the highest level of service to small business owners. Team members have funded hundreds of SBA loans in their careers, and are experts on SBA requirements, bank methodologies, and the current lending environment. Simply put: we know how to get it done for our clients.
Tech-enabled processing
StrongTerm’s portal allows clients to easily provide documentation, sign relevant paperwork, and communicate with their expert advisor quickly and easily.
StrongTerm not only creates a “fast lane” for clients to receive funding faster, our streamlined application process reduces unnecessary and redundant work for business owners. The result is our clients can receive funding without spending time chasing down documents, allowing them to focus on running their business
Faster, better, StrongTerm
In conclusion, the expedited SBA loan program offered by StrongTerm presents a dynamic solution for small businesses seeking efficient and accessible funding. This innovative program streamlines the SBA loan process, delivering the benefits of an SBA 7(a) loan with minimal paperwork and expedited decision-making. By partnering with banks holding “SBA preferred lender” status, StrongTerm has crafted a fast track for businesses that meet specific criteria, enabling them to navigate the lending landscape with ease.
The advantages of the program are compelling. Businesses can expect reduced paperwork requirements, leading to a swifter application process. The timely preapproval decisions, often within 24 hours, empower businesses to plan confidently for their financial needs. With a focus on credit-based underwriting, StrongTerm ensures that creditworthy entrepreneurs have the opportunity to access favorable terms without the constraints of traditional cash flow calculations.
Moreover, the expedited program aligns with the diverse needs of businesses, ranging from payroll and operational expenses to marketing and supplies. This flexibility coupled with the longer-term repayment structure sets businesses up for sustainable growth by promoting manageable monthly payments. StrongTerm’s commitment to tangible feedback and advisory support further enhances the lending experience, offering a clear path to future funding opportunities.
In a landscape where time, efficiency, and support are crucial, StrongTerm’s Expedited SBA loan program shines as a beacon of convenience and empowerment. With experienced advisors, tech-enabled processing, and a commitment to delivering optimal results, StrongTerm is poised to guide small businesses toward their goals, enabling them to thrive and succeed in their endeavors. When it comes to accessing funding that fuels growth, working with StrongTerm is about more than just a loan—it’s a strategic partnership for success.
Find out more about StrongTerm
If you’d like to learn more about the StrongTerm’s expedited loan program, or get started with your SBA loan application, our team is here to help.
To get started, please leave your information below, and a StrongTerm expert will be in touch to answer your questions and formulate a custom financing plan to help grow your business.
Even if you’d just like to test the waters, or have a question regarding the SBA or financing, we’d love to hear from you and be of service.
