SBA Form 2424, Supplemental Loan Agreement SBA Express Program
What Is SBA Form 2424?
SBA Form 2424, Supplemental Loan Agreement SBA Express Program is a supplemental agreement to the SBA Form 750 (Lender’s Loan Guarantee Agreement - Deferred Participation), and the SBA Form 750B (Loan Guarantee Agreement for Short-Term Loans). The supplemental agreement is used to establish the terms and conditions for the Lender's participation in the Small Business Administration (SBA) Express program.
The SBA released the latest edition of the form in February 2012 with all previous editions obsolete. An SBA Form 2424 fillable version is available for digital filing and download below:
By signing the agreement, the parties - the Lender and the SBA - agree on the following:
- That the Agreement is supplemental.
- That the Lender may issue an SBA-guaranteed loan approved under the SBA Express Program without prior review and approval from the SBA. The Lender will then transmit the required information about the Borrower and the loan to the appropriate SBA processing center.
- That the SBA is authorized to make periodic reviews, exams, and audits of the Lender’s activity.
- That the Lender must notify the SBA in the event of a significant change in its structure or operations.
- That the SBA may set off any amounts owed by Lender to the SBA.
- That the Lender is required to service and liquidate SBA loans in accordance with SBA's requirements in a commercially reasonable manner.
- That the Agreement does not apply to the Lender’s successors.
Both parties must decide on a mutually acceptable term of Agreement and a mutually agreed interpretation of the Agreement.
SBA Express Program
An SBA Express Loan is similar to the SBA 7(a) loan, which offers loans of up to $5 million and has a guarantee of up to 85% of the loan amount. The main difference is the processing time. Express Loan applications will be approved or denied within 36 hours and funds with funds available to the business owner within 90 days.
The SBA Express Loan program provides two option in total: one for small businesses exporting goods and another for all other types of businesses. The first option offers loans of up to $500,000. The second option provides long-term working capital loans of up to $350,000.
An SBA Express Loan can be a good fit for businesses that have been operating for 2 years or more and have a credit score of 680 or higher. To qualify for the financing, the applicant business has to meet the SBA 7(a) eligibility criteria. That includes operating for profit within the U.S., qualifying as a small business, and providing proof of no existing delinquencies or debt obligations to the U.S. Government.