SBAExpress Loans Replace LowDoc Program

The most popular form of financial assistance from the SBA was through the agency's Low Documentation ("LowDoc") Program, a derivative of SBA's long-established guaranteed loan program. This program was terminated in Fall 2005....may it rest in peace.

Initiated in 1993, LowDoc expedited the procedures for obtaining SBA guarantees on commercial loans under $150,000. Problems regarding bureaucratic delay and protracted loan approval procedures were reduced so that processing time for a LowDoc application was usually less than 36 hours.

However, the SBAExpress program was made permanent. The maximum amount of an SBAExpress loan is $350,000--considerably higher than the old LowDoc program. The interest rates for SBAExpress loans are lower than regular 7a loans. What's more, an SBAExpress loan can be used to provide a revolving line of credit, which can be crucial for a small business. These loans require very little paperwork from SBA and the turnaround time is within 36 hours. Check out the Express loan option here. Keep in mind that usually the guaranty on these loans is only 50 percent so the lender has less of an incentive to use this form.