SBA express loan

December 01, 2022

by a searcher from University of Colorado at Boulder in Los Angeles, CA, USA

We have SBA 7a outstanding and thinking about SBA express LOC for A/R financing. Does anyone on here have experience stacking these products? Anything to be aware of of pretty straightforward? Thanks!

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I agree with Karl. You will first need to go to your existing SBA lender to request the line of credit. So long as your cash flow supports it, hopefully they will not have an issue giving you the line. If for some reason they are not interested in giving you the line you will need to get two things from them. First, you will need to get a denial letter from them. That will open up the opportunity for you to get the line done elsewhere. Secondly, you will need the to agree to release the accounts receivables so another lender can provide financing on them. It is almost assured they have a general lien on all business assets that includes your account receivables. Without them releasing them, you will not be able to get additional outside financing from another SBA lender or any other lender for that matter. Even if another SBA lender is not interested in providing you with a line of credit, there are other options available out there from other asset based lenders, conventional bank lines, and factoring. But again, you will need the Bank to release the accounts receivable for another lender to be able to finance you.

If you would ever like to talk in more detail, please do not hesitate to reach out to me here or directly at redacted Good luck and. I hope your Bank approves you for the additional working capital.

Reply by a lender
from University of Michigan in Indianapolis, IN, USA

Hi Pete. Should be an easy request if the business is performing. You're existing 7a lender though will need to handle your SBA Express LOC request.

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