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Boots To Business - Financing the venture
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- 2. Objectives Understand the resourcesrequired to execute on your business concept; understand the different opportunities to fund start-up and subsequent growth, and the opportunities and challenges associated with each. Additionally: • Understand what types of financing are available for your business. • Develop an action plan to access it.
- 3. Three Reasons Start-UpsNeed Funding Why Most New Ventures Need Funding Inventory must be purchased, employees must be trained and paid, deposits and advertising must be paid for before cash is generated from sales. CASH FLOW CHALLENGES Some products are under development for years before they generate earnings. The up-front costs often exceed a firm's ability to fund these activities on its own. LENGTHY PRODUCT DEVELOPMENT CYCLES The cost of buying real estate, building facilities and purchasing equipment typically exceeds a firm's ability to provide funds for these needs on its own. CAPITAL INVESTMENTS
- 4. • How muchmoney do I need? • What type of business is it? • What type of capital is most appropriate? • How much control do I need? • What is my bargaining position? Questions To Ask Yourself
- 5. Sources of Financing •Personal Funds • Traditional Debt (Bank Loan) • SBA Guaranteed Loan • Crowd Sourcing • Peer-to-Peer Networks • Micro Loans • Angel Investors • Venture Capital (VC) • Private Equity • Public Offerings (IPO) • Business Credit
- 6. Where Startups GetTheir Financing Source: Entrepreneur Magazine
- 7. Other Important Considerations •How much have I saved to contribute toward financing my business? • Are my personal finances in good shape? • What is my credit score? • Can I afford to lose this money?
- 8. Personal Funds You needskin in the game before you seek any external funding! Sources of personal funding: • Cash and personal savings • Credit cards • Home equity (HELOC) • Friends and family • Equities and stock portfolio • Retirement accounts • Cash value loan from “whole life” insurance
- 9. Business Credit Get Fundingfor your Business : • Personal credit doesn't matter when it comes to building your business credit. • You can start a Business Credit Profile & Score -- EVEN as a Startup. • Get Vendor, Store, & Cash Credit for your business with NO Personal Guarantee or Credit Check Click the Link Below For More Information http://smarturl.it/creditsuite
- 10. Bootstrapping Bootstrapping is findingways to avoid the need for external financing or funding through creativity, ingenuity, thriftiness, cost-cutting or any means necessary. It is the most common source of start-up funding and most entrepreneurs bootstrap out of necessity.
- 11. Buying used insteadof new equipment Leasing equipment instead of buying Crowd funding Sharing office space with other businesses Coordinating purchases with other businesses Obtaining payments in advance from customers Vendor financing Making do with what you have Examples of Bootstrapping Methods
- 12. Preparing to RaiseDebt or Equity Capital Preparation for Debt or Equity Financing Determine precisely how much money is needed STEP 1 Develop a strategy for engaging potential investors or bankers STEP 3 Determine the type of financing or funding that is the most appropriate STEP 2
- 13. Debt vs. Equity DEBT •Bank or other lender loan • Allows you to maintain ownership and control • Requires repayment with interest • Generally considered the cheapest way to grow EQUITY • Involves investors • Money is exchanged for partial ownership • Is not paid back • Means you have shareholders • Can have huge benefits beyond the money
- 14. Debt • Provides liquidity,NOT investment • All lenders are risk averse • Requires “The Five Cs” • Credit • Collateral • Commitment • Character • Cash Flow • Local community banks and credit unions that offer commercial services may be good options.
- 15. SBA Guaranteed Loans TheSBA does not lend money; it “guarantees” the loan. • SBA loans are for small businesses that are not able to obtain credit elsewhere • The program operates through private-sector lenders that participate in SBA lending programs. • Mitigates the lender’s risk in lending to start-ups • Still requires “The Five Cs”: credit, collateral, commitment, character, cash flow
- 16. SBA Guaranteed Loans SBAfinancial assistance programs can help you: • Start your business • Grow your business • Export your goods and services • Recover from a disaster Small businesses can access a maximum of $5 million in SBA guaranteed financing • Can be used for most small business finance needs • Multiple loans allowable, but total SBA-backed loans cannot exceed $5 million
- 17. 7(a) Loan Program SBA’sprimary business loan program to start, acquire or expand a business. • May include equipment, real estate purchase and improvements, inventory and working capital • Maximum loan amount of $5 million SBA Express Programs Streamlined, expedited loan process using experienced SBA lenders. Geared toward faster approvals. SBA Loan Programs
- 18. SBA Community Advantage •Loan amounts up $250,000 SBA Microloans • Loan amounts of $50,000 or less • Administered by non-profit lenders • Credit requirements not as stringent • Management/technical assistance usually provided SBA Finance Programs for Underserved Markets
- 19. Includes upfront guarantyfee relief on SBA loans: SBA 7(a) • Zero upfront fee for loans up to $125,000 • 50% fee reduction for loans $125,001 to $350,000 SBA Express Loans • Zero upfront fee SBA Veterans Advantage
- 20. Available to: • Veterans •Transition Assistance Program (TAP)–eligible active duty service members • Reservists and National Guard members • Current spouse of any of above • Some widowed spouses SBA Veterans Advantage
- 21. Not Eligible forSBA Financing • Religious organizations • Gambling or speculation • Non-profit organizations • Businesses providing sexual material • Charitable organizations • Illegal activities • Real estate investment/ other speculative activities • Borrowers that have defaulted on federal loans or financing (VA home loans or guaranteed student loans)• Lending activities • Multi-level marketing firms
- 22. USDA Loans &Loan Guarantees 22 Businesses in rural areas can use USDA Loan Programs and Guarantees for: • New business start-up expenses • Acquiring an existing business • Purchasing land, buildings or facilities • Modernization & other business improvements
- 23. For Banks/Credit Unions: •Less risky for them because the government “guarantees” a percentage of the loan For YOU: • Can obtain loan without as large of a down payment or as much collateral on-hand • Good interest rates and longer terms • No balloon payments or demand clauses What’s the Advantages of a Government-Guaranteed Loan?
- 24. Equity • Involves investors •Money is exchanged for partial ownership • Is not paid back • Means you have shareholders • Can have huge benefits beyond the money
- 25. Sources of EquityFunding • Crowd Funding • Peer-to-Peer Lending • Small Business Investment Company • Angel Investors • Venture Capital • Private Equity • Private Placement • Initial Public Offering
- 26. Crowd Funding PROS: Entrepreneursmake their offers and set their own funding goals. Host site charges a percentage of the funds. CONS: No guarantee that you will gain traction. Some channels do not pay out until the goal is reached. Rewards-based funding allows entrepreneurs to “pre-sell a product or service” to raise the capital to launch a business without incurring debt or sacrificing equity/shares.
- 27. Peer-to-Peer Lending Authorization forPeer-to-peer or Crowd-Funded Equity was established with the JOBS Act of 2012. The SEC has created regulations for platforms. You can trade cash for ownership in your company via crowd funding websites. PROS: You can cast wider net for potential investors CONS: You may not want ‘the crowd’ as a part owner of your company
- 28. Small Business InvestmentCompany A privately owned company licensed and regulated by the SBA. SBICs invest in small businesses through debt, equity or both. • The SBA doesn’t invest directly into small businesses; it provides funding to SBICs with expertise in certain sectors or industries • SBICs then use their private funds, along with SBA-guaranteed funding, to invest in small businesses
- 29. Angel Investors/Venture Capitalists ANGEL INVESTORS •Individuals who invest their personal capital directly in start-ups • Business angels are valuable because of their willingness to make relatively small investments, and for their industry knowledge and market connections VENTURE CAPITALISTS • VC firms are limited partnerships of money managers who raise money in “funds” to invest in start-ups and growing firms • Invest in high growth potential ventures, but not generally at the start-up stage • Looking for extraordinary returns • Fund fewer deals than Angels www.angelcapitalassociation.org/ entrepreneurs/
- 30. More Sophisticated Sourcesof Equity PRIVATE EQUITY: Similar to VC, but much larger deals PRIVATE PLACEMENT: Shows revenue and expenses and provides ‘bottom line’ of profitability over a specified period INITIAL PUBLIC OFFERING (IPO): A company’s first sale of stock to the public where its stock is then traded on one of the major stock exchanges All of these are complicated, expensive and require a strong operating history.
- 31. Financial Statements YouWill Need BALANCE SHEET: Snapshot of your company’s assets and claims against those assets. Shows what the company owns, owes, and how it is financed at a specified period of time. INCOME or PROFIT & LOSS STATEMENT: Shows revenue and expenses and provides the “bottom line” of profitability over a specified period of time. CASH FLOW STATEMENT: Shows sources and uses of cash as well as net change on cash over a specified period of time.
- 32. Sample Balance Sheet ASSETS CURRENTASSETS Cash $123,000 + Marketable Securities 200,000 + Accounts Receivable 345,000 + Inventories 100,000 $768,000= Total Current Assets LONG-TERM ASSETS Building (Gross) $350,000 - Accumulated Depreciation -50,000 = Net Building $300,000 + Land $325,000 $625,000= Total Long-Term Assets TOTAL ASSETS $1,393,000 LIABILITIES CURRENT LIABILITIES Accounts Payable $100,000 + Notes Payable 150,000 = Total Current Liabilities $250,000 LONG TERM LIABILITIES Long Term Note to Bank $300,000 _________ $550,000= TOTAL LIABILITIES OWNER EQUITY (= TOTAL ASSETS – LIABILITIES) $843,000 TOTAL LIABILITIES $1,393,000
- 33. Sample Income Statement OPERATINGACTIVITIES, CASH FLOWS PROVIDED BY OR (USED) IN: Net Sales $ 1 , 2 0 0 , 0 0 0 minus Cost of Goods Sold (COGS) - 8 5 0 , 0 0 0 = Gross Profit $ 3 5 0 , 0 0 0 minus Selling, General, and Admin. Expenses - 31 1 , 0 0 0 = Income from Operations $ 3 9 , 0 0 0 minus Interest Expense - 9 , 0 0 0 = Income Before Taxes $ 3 0 , 0 0 0 minus Income Taxes (federal, state and possible local) - 1 2 , 0 0 0 Net Income $ 1 8 , 0 0 0
- 34. OPERATING ACTIVITIES, CASHFLOWS PROVIDED BY OR (USED) IN: Net Profit $18,000 Depreciation/Amortization $50,000 Changes in Accounts / Receivable ($345,000) Changes in Accounts /Payable $100,000 Changes in Inventory ($100,000) Total Cash Flow from Operating Activities ($277,000) INVESTING ACTIVITIES, CASH FLOWS PROVIDED BY OR (USED) IN: Payment for Acquisition of Property/Plant/Equipment (PPE) ($350,000) Sale of PPE $0 Total Cash Flow from Investing Activities ($350,000) FINANCING ACTIVITIES, CASH FLOW PROVIDED BY OR (USED) IN: Issuance of Stock $600,000 Dividends $0 Net Borrowings $150,000 Total Cash Flows From Financing Activities $750,000 Net Increase/Decrease in Cash = ($277K) + ($350K) + $750K $123,000 Cash at beginning of period $0 Cash at end of period $123,000 Sample Cash Flow Statement How cash comes into and goes out of the business Operating Activities = how cash comes into and goes out ($) of the business from “sales” activities Investing Activities = from asset purchases ($ out) or sales ($ in) Financing Activities = from loans or stock sales ($ in) vs dividends paid ($ out)
- 35. Key Takeaways • Planfor future growth • Small business capital can come in a variety of different forms • Know the difference between debt and equity financing • Understand how much you need • Consider SBA loan programs that provide financial assistance for a variety of business needs
Editor's Notes
- #3 Instructor Notes: These do not need to be expanded upon other than to ensure that the students understand what the module will cover.
- #4 Instructor Notes: This chart focuses on three common reasons businesses need funding. Cash Flow Challenges are going to be most common issues that many of the students in Boots to Business will face. You should be sure to cover what all three of these issues are so that they have awareness of them. You should go into some further explanation of how the development cycle impacts funding requirements.
- #6 Instructor Notes: These are the different sources of financing that we will cover.
- #7 Instructor Notes: This graph reinforces what we saw in the Kauffman Foundation video regarding startup funding. (i.e. most small business are funded from the business owner’s resources, not banks or credit unions, Angel Investors or Venture Capital)
- #8 Instructor Notes:
- #9 Instructor Notes: This is a starting slide to talk about that the majority of businesses are started through personal funds, friends/family and bootstrapping. Emphasize that they need ‘skin in the game’ prior to seeking funding. No matter if they are looking for a bank loan or private investor, they have to show that they have put up some capital in the venture. These sources are very self-explanatory - go through the different types of funding, then start to talk about bootstrapping to lead into the next slide.
- #10 Instructor Notes: This is a starting slide to talk about that the majority of businesses are started through personal funds, friends/family and bootstrapping. Emphasize that they need ‘skin in the game’ prior to seeking funding. No matter if they are looking for a bank loan or private investor, they have to show that they have put up some capital in the venture. These sources are very self-explanatory - go through the different types of funding, then start to talk about bootstrapping to lead into the next slide.
- #11 Instructor Notes: Talk about bootstrapping and its importance when launching your venture. Many entrepreneurs do this because they have to. As they think about their start-up costs, they should also think of ways that they can mitigate some of those ‘cash-costs’. You can ask some of them to talk through some of their start-up costs based on their business and ask some ways that they can bootstrap in order to save some of their cash outlay. The next slide goes through some examples of bootstrapping. Bootstrapping is not a substitute for planning.
- #12 Instructor Notes: These are some examples of bootstrapping to cover. You should also use some of your own examples if you have some.
- #13 Instructor Notes: A straightforward slide to prepare for raising capital. You should walk through each step and then move to the next slide which talks about Debt vs. Equity
- #14 Instructor Notes: Use the side-by-side to talk about the differences between debt and equity financing. They should understand that debt financing comes from a lender, usually a bank, and is paid back with interest. Equity financing funding is exchanged for partial ownership in the business. Refer back to the opening slides when you started to explain what ‘control’ of the business meant with regard to an equity stake.
- #15 Instructor Notes: Use this slide to cover a traditional bank loan (SBA guaranteed loans will be covered on the slide 15). Revisit the fact that traditional financing is difficult to get right now, especially as a start-up. Cover the five C’s and talk about the importance of their personal credit. Encourage them to pull their credit report to see if there are any mistakes or errors. If they are still in the military, this is a good time to start paying down debt and cleaning up their credit (if needed). Lastly, talk about the option of credit unions and local community banks, as many business owners are having better success with some of these options as opposed to the larger national banks. Also cover the importance of forming a relationship with that specific bank so that, as your business grows, your leverage and relationship with the bank grows as well.
- #16 Instructor Notes: The next several slides cover SBA loans. Realizing that SBA resource partners are very well versed in SBA lending, use your knowledge, training and experience to highlight the different guarantee programs. Thoroughly explain what ‘guaranteed loan’ means, as some may think that they will get the loan as long as they apply. You can use the VA guaranteed home loan as a comparison as most of them will understand.
- #17 Instructor Notes: There are various types of financing – traditional, equity-based, etc. We’re going to focus today on traditional lender financing – but delve further into this in the Boots to Business class. The size of the loan can vary. We’ve seen approved loans from $5K to $5M which is why the SBA has different loan offerings SBA loans can be used for just about any legitimate business finance need. Some of the main ones include: Starting a business Expanding an existing business Exporting to other countries Recovering from a disaster (SBA has a disaster assistance branch with a team that is “on the ground” immediately after disasters. This team provides low interest loans to business owners and some home owners to help them get back on their feet after a disaster).
- #18 Instructor Notes: Even though the various SBA loan programs have different names, the majority of SBA loans are just specialized variations of a 7(a) loan. 7(a) loans can go up to $5 million. SBA Express loans (another type of 7(a) loan) are special loans that are done with SBA Express lenders (usually institutions who have a lot of experience with SBA lending). Express loan amounts only range as high as $350K, but approval times are much shorter (approvals usually come back to the requesting lender in under ONE hour once SBA has received a complete and correct loan package from that lender).
- #19 Instructor Notes (needs rewriting): The Microloan Program provides small (up to $50,000), short-term (six years or less) loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. Designed for small businesses needing small-scale financing and technical assistance for start-up or expansion, and is delivered through specially designated nonprofit organizations with experience in lending and technical assistance. Applying businesses may be required to fulfill training and/or planning requirements before a loan application is considered. The 504 Loan Program provides small businesses with long-term, fixed-rate financing to acquire real estate/major fixed assets for expansion or modernization. A commercial lender provides up to 50% of the financing package. A Certified Development Corporation (a non-profit economic development entity)’s loan of up to 40% is secured by a junior lien. The SBA backs the CDC with a fully guaranteed debenture. Typically, the small business must contribute at least 10% as equity. However, a seller or other entity can finance the owner equity portion provided it meets certain criteria. The maximum amount of the SBA’s debenture is $5 million (and $5.5 million for manufacturers or for certain types of energy-related projects). Biggest advantages to borrowers on this type of loan (i.e. why they would want to go for a 504, versus standard business financing?) is a longer term than normally given with standard commercial loan (= lower payments) and low fixed interest rate on the (40%) SBA portion.
- #20 Instructor Notes: You may want to highlight that this program replaced the Patriot Express pilot initiative that some class members may have heard of. SBA Veterans Advantage is not a separate loan program. Veteran borrowers would apply for the same SBA Express and SBA 7(a) as a non-veteran. They just want to ensure the bank knows they are a veteran or spouse, so bank knows not to charge the fees. Veterans advantage is intended to facilitate lending to veteran-owned small businesses, so that they have the tools they need to start and grow their businesses. Under Veterans Advantage: SBA will waive the entire guaranty fee on all 7(a) loans of $125K or less and all SBA 7(a) express loans. (Express loans are up to $350K) 50% up-front guaranty fee reduction on 7(a) loans of $125,001 up to $350K Bottom Line: Reducing or waving the up-front guaranty fee can save veteran-owned small businesses thousands of dollars that they can, instead, use to run their business.
- #21 Instructor Notes: Other than the guaranty fee reductions, Veterans Advantage borrowers are treated no differently than any other borrower who seeks or qualifies for an SBA Express or SBA 7(a) loan (i.e. underwriting, eligibility and what loan proceeds can be used for are exactly the same) Eligibility: At least 51% of company controlled by individual in one or more of the following groups: Veterans, including service-disabled veterans Active duty military service members participating in the military’s Transition Assistance Program (TAP) Reserves or National Guard When going through the list of eligible parties, you might highlight that current spouse is eligible to apply for this type of financing, and it’s not required that the veteran be involved in the business seeking the financing. Widowed spouse of service member/vet who died during service, or from a service-related disability also may be eligible.
- #22 Instructor Notes: This slide is a listing of some of the types of industries that are prohibited by regulation from using SBA-backed loans for financing. This does not mean that in all cases SBA resources (counseling, etc.) can’t be used to help set up or grow the legal businesses. They just cannot use SBA loans to finance businesses of these types. Most (Illegal, gambling, porno/strippers, pyramid schemes, etc.) are probably self-explanatory on why they are not permitted. However, might want to explain: For real estate purchases, the business needs to occupy at least 51% of the space being purchased. A basic tenet of SBA financing, is that the borrower must be a for-profit business.
- #23 Instructor Notes: USDA Loans & Loan Guarantees There is an in-depth section on USDA Rural Development Finance programs in module 8. To see if their business is or will be located in an eligible area, participants can visit: bit.ly/usdabusinessmap
- #24 Instructor Notes: Why banks do SBA loans: A percentage of the loan is guaranteed by the SBA, enabling lenders to accept greater risk on small businesses that may not currently be financially strong enough to obtain a conventional small business bank loan. Why borrowers seek SBA loans: The SBA guarantee DECREASING the risk for the bank or credit union INCREASES the likelihood of a you getting the financing your small business needs. Significant features that SBA programs offer are lower down payments and longer term financing. SBA loan programs include certain protections for borrowers, including no balloon payments (an oversized payment due at the end of the loan period) or demand clauses. A demand clause allows the lender to require immediate full payment (loan payoff) in the event that your company does not report satisfactory financial results or if the lender changes its loan standards.
- #25 Instructor Notes: Just read the slide
- #26 Instructor Notes: You don’t need to go into each of these; just highlight that these are the different types of equity financing we are going to cover.
- #27 Instructor Notes: Crowd funding is obviously a much newer form of financing and in its early stages. The regulations for crowd funding for equity are still being solidified by the SEC and we are waiting on the regulation. Until this point, crowd funding has been more ‘project based’ on platforms like Kickstarter (www.kickstarter.com) and Indiegogo (www.indiegogo.com). This may develop into a very strong form of financing because of the number of investors you can reach through the internet. There are a lot of drawbacks at this point because of the lack of regulation around the different platforms.
- #28 Instructor Notes: Crowd funding is obviously a much newer form of financing and in its early stages. The regulations for crowd funding for equity are still being solidified by the SEC and we are waiting on the regulation. Until this point, crowd funding has been more ‘project based’ on platforms like Kickstarter (www.kickstarter.com) and Indiegogo (www.indiegogo.com). This may develop into a very strong form of financing because of the number of investors you can reach through the internet. There are a lot of drawbacks at this point because of the lack of regulation around the different platforms.
- #29 Instructor Notes: Angel Investors: Give some background about angel investors and that they used to be difficult to find and receive funding from. Recently, they are easier to find through angellist.com and other search engines. You should cover that often times angel investors bring much more than money to the table. They often bring a lot of experience and/or contacts that you can leverage to grow the business. It’s important to note that angel investors are not individuals or groups who will hand you money because they are called ‘angels.’ They will expect a very strong return in a relatively short period of time. www.angellist.com VCs: Now we are starting to get into more sophisticated forms of financing. You should explain that Venture Capitalists look for extraordinarily high returns with their investments. This is for well established and high growth companies.
- #30 Instructor Notes: Angel Investors: Give some background about angel investors and that they used to be difficult to find and receive funding from. Recently, they are easier to find through angellist.com and other search engines. You should cover that often times angel investors bring much more than money to the table. They often bring a lot of experience and/or contacts that you can leverage to grow the business. It’s important to note that angel investors are not individuals or groups who will hand you money because they are called ‘angels.’ They will expect a very strong return in a relatively short period of time. www.angellist.com VCs: Now we are starting to get into more sophisticated forms of financing. You should explain that Venture Capitalists look for extraordinarily high returns with their investments. This is for well established and high growth companies.
- #31 Instructor Notes: Use this slide to cover more sophisticated forms of financing. There will not be anyone in the class at this point using these forms of funding, but they should be aware.
- #32 Go over these basic financial statements and explain how they fit together to provide a complete picture of a firm’s health. Almost every software package they will use can generate these reports instantly. The key is understand what each topic means and to understand how you are making money, who owes you money and how timely they are in paying you as well as to whom you owe money and how soon you must pay it back. A common question is how a company can show positive net income on the Income Statement and negative cash flow.
- #33 Items on a balance sheet are listed in order of liquidity. For ASSETS, liquidity means nearness to cash. For this reason, cash is the first item on the balance sheet. After cash, the other current assets are listed in order of liquidity: marketable securities, accounts receivable and inventories make up the rest of the current assets that could be converted to cash in a year. Following current assets come those assets that would take more time to convert to cash. Buildings, land, and equipment would all be considered long-term or fixed assets. When ranking CLAIMS ON ASSETS, liquidity refers to how quickly the claim against the company matures. Short-term or current liabilities are generally due in a year. Intermediate, and then long-term liabilities would be listed next. Last on the claims portion of the balance sheet would be the EQUITY ACCOUNTS. Both columns must be equal. The delta between what the company own and what it owes to others is EQUITY. For a corporation, the preferred stock accounts would be listed before common equity accounts. The last claimants on a company's assets are the common stockholders.
- #34 Profit (Loss) for a defined period of time. Revenues result from the entity’s operating activities (e.g., selling merchandise). Costs and expenses are incurred in generating revenues and operating the entity. Ask the class what they can tell about the company from this I/S and discuss. Does this look a company you would buy? It’s what we don’t see in that “selling/general/admin expense” area that counts – owners’ salaries? Owners’ expense covered? Remember: the goal is to make the Taxable Income as low as possible since that what we pays taxes on. BOB WALZ does a section here on SIX BUSINESS RATIOS (handout)
- #35 Analysis: statement of cash flows Cash flows determine how effectively a company generates and manages cash . For example, analysts may look closely at the cash from operating activities in evaluating a company's potential for long-term success because this figure shows how efficiently the company can produce and sell its primary product or service.
- #36 Instructor Notes: Even though the various SBA loan programs have different names, the majority of SBA loans are just specialized variations of a 7(a) loan. 7(a) loans can go up to $5 million. SBA Express loans (another type of 7(a) loan) are special loans that are done with SBA Express lenders (usually institutions who have a lot of experience with SBA lending). Express loan amounts only range as high as $350K, but approval times are much shorter (approvals usually come back to the requesting lender in under ONE hour once SBA has received a complete and correct loan package from that lender).