The SBA Express Loan program provides faster approval and funding compared to standard SBA 7(a) loans, making it a practical financing option for Texas restaurant owners who need capital quickly. Express Loans offer up to $500,000 with a turnaround time of 36 hours on SBA approval, compared to weeks for standard 7(a) processing.
How the SBA Express Loan Works
The SBA Express Loan is a subset of the 7(a) program that delegates more authority to approved lenders, resulting in faster decisions. For restaurant owners, this speed can mean the difference between securing a prime location or losing it to a competitor. Express Loans carry a 50% SBA guarantee (compared to 75-85% for standard 7(a)), which means lenders bear more risk and may require stronger credit profiles.
Key Terms for Restaurant Borrowers
- Maximum amount: $500,000
- SBA turnaround: 36 hours
- SBA guarantee: 50%
- Eligible uses: Working capital, equipment, leasehold improvements, inventory, and refinancing
- Term: Up to 10 years for working capital, up to 25 years for real estate
Best Uses for Texas Restaurants
Express Loans are particularly well-suited for restaurant scenarios that require fast capital deployment. Common uses include leasehold improvements and build-out for new locations, kitchen equipment purchases and upgrades, working capital during seasonal fluctuations, and bridge financing while waiting for other funding to close.
How to Apply in Texas
Work with an SBA Express-approved lender in your area. Not all SBA lenders participate in the Express program. Your local SBDC can help identify Express lenders with restaurant lending experience. LiftFund and PeopleFund, two Texas CDFIs, are SBA-approved lenders that may offer Express processing for qualifying borrowers.
Express Loan vs. Standard 7(a) for Restaurants
If you need more than $500,000, the standard 7(a) program provides up to $5 million with a higher SBA guarantee. If speed is the priority and $500,000 covers your needs, Express is typically the better choice. Restaurant owners should compare both options with their lender to determine the best fit.
Find More Programs for Your Business
The SBA Express Loan for Restaurants in Texas is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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