SBA Express Loans

SBA Express LoansArkansas Capital Corporation (ACC) has been designated as an Express Lender by the U. S. Small Business Administration (SBA), which reduces the number of government mandated forms and procedures, streamlines the processing and reduces the cost of smaller, less complex SBA guaranteed loans. The product allows Arkansas Capital Corporation to utilize, to the maximum extent possible, our loan analyses, procedures, and documentation. In return for this expanded authority and autonomy provided to Arkansas Capital Corporation by SBA, we agree to accept a maximum SBA Guarantee of 50%.

All SBA Express loan applicants must meet the product’s eligibility requirements, which are designed to be as broad as possible. Businesses must meet SBA size standards, must be “for profit,” must be without internal resources to provide the financing, and must be able to demonstrate repayment ability.

Details of SBA Express Loans

Loan Purpose

SBA Express loans can be used for the purchase of leasehold improvements, machinery and equipment, fixtures and furniture, inventory and other business assets; to provide working capital; to refinance certain debt; to purchase a business; and to pay loan closing costs.

Loan Amounts

SBA Express loans funded by Arkansas Capital Corporation range from as small as $25,000 to a maximum of $1,000,000. SBA Express loans in excess of $1,000,000 are not eligible.

Time to Closing

Proposal Letter — 10 days from receipt of complete ACC Lending Loan Application

Underwriting – 10 days from receipt of executed Proposal Letter and Good Faith Deposit

SBA approval – 5 days from the date of loan package submission

Closing – 10 days from the receipt of all required closing items.

From start to finish, providing the timely submission of information, your ACC Lending Loan Processing should not exceed 45 days.

Interest Rates

Floating rates, up to 4.50% over the Wall Street Journal Prime rate, adjusting every calendar quarter for SBA Express loans over $50,000.

Floating rates, up to 6.5% over the Wall Street Journal Prime rate, adjusting every calendar quarter for SBA Express loans $50,000 or less.


Maximum 7 years for Revolving Lines of Credit including term-out period. Otherwise, the loan terms are the same as for standard SBA 7(a) loans.

Prepayment Penalty

Standard SBA 7(a) prepayment penalties will apply for SBA Express loans with maturities of 15 years or more, as follows:

When in any one of the first three years from the date of initial disbursement the Borrower voluntarily prepays more than 25% of the outstanding principal balance of the loan, Borrower must pay to Lender on behalf of SBA a prepayment fee for that year as follows:

  1. during the first year after the date of initial disbursement, 5% of the total prepayment amount;
  2. during the second year after the date initial disbursement, 3% of the total prepayment amount; and
  3. during the third year after the date of initial disbursement, 1% of the total prepayment amount.

Loan Fees

An SBA Guaranteed Loan requires a one-time fee (see section below) based on the dollar amount being guaranteed.

SBA application packaging fee of $500.00

Consumer and business credit reports, income tax verification and environmental screening – up to $650.00.

Loan fees may be financed in the loan

Your Good Faith Deposit will be used to offset loan underwriting, as well as packaging and closing expenses. However, appraisals and further environmental expenses are not included in your Good Faith Deposit and are collected separately prior to the engagement of any such professional services.

SBA Guarantee Fees

Loan maturity of 12 months or less = .25% of guaranteed portion

Loan maturities over 12 months (depending upon gross loan amount, as follows)

Gross loan:   $150,000 or less = 2.0% of guaranteed portion
$150,001 – $700,000 = 3.0% of guaranteed portion
$700,001 – $1,000,000 = 3.5% of guaranteed portion


Loans must be collateralized to the maximum extent possible up to the loan amount. If business assets do not fully secure the loan and personal assets are available, they must be pledged as additional collateral to secure the debt.


All principals who own 20% or more of the business are required to provide a full guarantee. Principals or key managers owning less than 20% may be required to provide a guarantee on a case-by-case basis.

When necessary to secure a collateral position, SBA will require the guarantee of a non-owner spouse to the extent of the spouse’s interest in the collateral.

The guarantee of affiliated companies may also be required based upon the percentage of ownership of the affiliate and the borrower’s relationship with the affiliate.

Debt Service Requirements

A minimum historical or projected debt service coverage ratio of 1.2 times is required.


Loans can generally be made to all for-profit small businesses except those that do not meet SBA 7(a) eligibility requirements. These are primarily small businesses engaged in lending, loan packaging, investments, pawn shops, passive real estate investments, life insurance companies, small businesses located in a foreign country or owned by illegal aliens, pyramid plan sales, gambling, businesses which restrict patronage or promote a religion, cooperatives, or individuals of poor character or on probation or parole.

Other Considerations

Cash/Equity/Asset Injection: Evidence must be provided by the applicant prior to any loan closing and disbursement.

Subordination/Standby Debt Agreements: Standby creditor must subordinate any lien rights in collateral securing a loan to the lender’s rights in the collateral and agree to take no action against applicant or any collateral securing the Standby Debt without lender’s consent.

Real Estate Appraisals: Required for all Real Estate used as collateral.

Equipment Appraisals: Required to substantiate the value of any used machinery and/or equipment.

Environmental Reports: Required for all Real Estate used as collateral.

Late Charge: A late charge (not to exceed $100.00) in the amount of five percent (5%) of the amount of any payment which is not made within ten (10) days of the date the payment is due will be collected from the Borrower.

Loan Proceeds: Arkansas Capital Corporation must document that the borrower used the loan proceeds for the approved purposes.

Insurance: Property insurance (fire and theft, extended coverage and liability) will be required. All personal and real property shall be insured for replacement cost. Insurance coverage for improvements to real property must contain a Mortgagee Clause in favor of lender. Insurance coverage for personal property must contain a Lender’s Loss Payable Clause in favor of lender. Additionally, the policy must provide written notice at least 10 days prior of policy cancellation.

Life Insurance: The key principals of the operating company may be required to provide an assignment of life insurance in the amount of the loan.

Flood Insurance: Will be required if the property is located within a flood area.

Workers’ Compensation Insurance: Will be required in amounts meeting state law requirements.

Verification of Financial Information: Arkansas Capital Corporation must verify the applicant’s last 3 years (unless applicant is a start-up business) of tax returns submitted to IRS via IRS Form 4506-T.

Lease Term: Lease(s), including options, on all business premises where collateral is located should be for at least as long as the term of the loan.

Assignment of Rents: A perfected assignment of all rents paid under a lease between an Eligible Passive Concern (Real Estate Holding Company) and the applicant Operating Company is required.

Landlord’s Waiver: Applicant must provide lender access to any leased premises and facilities where collateral is located with an executed Landlord’s Waiver.

Occupancy:   Existing Real Estate Improvements – occupy at least 51% of the property.
New Construction – occupy at least 60% of the property.

Franchised Operations: All franchised operations not listed on the Franchise Registry must pass a legal review of the applicant’s Franchise Agreement and Franchisor’s Disclosure Statement.

Child Support: Certification from applicant that any required child support is no more than 60 days delinquent.

Current Taxes: Applicant must be current on all federal, state and local taxes, including but not limited to income taxes, payroll taxes, real estate taxes and sales taxes.

Good Faith Deposits: A Good Faith Deposit (see below schedule) shall be required and applied to the applicant’s SBA packaging fee and other costs associated with credit investigation and underwriting. If approval is not obtained, the Good Faith Deposit shall be refunded (less the cost of credit verification, environmental screening, IRS filing verification and any other out of pocket expenses incurred by Arkansas Capital Corporation).

  • $1,000   SBA Express Loan of $100,000 and less 
  • $2,500   SBA Express Loan of $100,001 to $500,000 
  • $3,000   SBA Express Loan of $500,001 to $1,000,000