What is an SBA Express Loan?
Learn what SBA Express loans are, understand the faster approval timeline, and see how this program compares to standard SBA 7(a) loans.
SBA Express is a subprogram of the SBA 7(a) loan program that offers faster approval decisions in exchange for a lower guarantee percentage. Lenders can approve Express loans using their own procedures rather than waiting for full SBA review, resulting in decisions within 36 hours.
SBA Express Loan Terms
Key terms for SBA Express loans:
| Feature | SBA Express |
|---|---|
| Maximum loan amount | $500,000 |
| SBA guarantee | 50% (vs. 75-85% for standard 7(a)) |
| Turnaround time | 36 hours from SBA |
| Loan type | Term loans or revolving lines of credit |
| Working capital terms | Up to 10 years |
| Real estate terms | Up to 25 years |
Express vs. Standard 7(a)
The key differences between Express and standard 7(a) loans:
- Speed: Express decisions in 36 hours; standard 7(a) can take weeks
- Guarantee: Express has 50% guarantee; standard has 75-85%
- Loan size: Express max is $500,000; standard max is $5 million
- Lender process: Express uses lender's own underwriting; standard requires more SBA oversight
Lower Guarantee Trade-off
The lower 50% guarantee means lenders take more risk on Express loans. This may result in stricter lender requirements or slightly higher rates, but the speed advantage can be worth it.
Revolving Lines of Credit
Unlike standard SBA 7(a) loans that are typically term loans, SBA Express can be structured as a revolving line of credit. This gives businesses flexible access to capital they can draw, repay, and redraw as needed.
Express lines of credit have a maximum term of 10 years for the revolving period.
When to Use SBA Express
SBA Express is often the right choice when:
- You need funds quickly and cannot wait for standard SBA processing
- Your loan amount is under $500,000
- You want a revolving line of credit with SBA backing
- Your lender recommends it based on your situation
- You have strong credit and collateral (making the lower guarantee less of an issue for lenders)
Qualification Requirements
SBA Express requirements are similar to standard 7(a) — you must meet SBA eligibility criteria, demonstrate ability to repay, and provide personal guarantees. Because the lender carries more risk, they may have stricter internal requirements.
Ask your SBA lender about both Express and standard 7(a) options. For smaller loans where speed matters, Express is often the better choice. For larger loans or when you need the highest guarantee, standard 7(a) may be preferred.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
No Guarantee of Financing: Liminal Lending Co. is a business loan marketplace that connects borrowers with third-party lenders. We are not a lender and do not make credit decisions. Submitting an application does not guarantee approval or funding. Loan terms, rates, and availability vary by lender and are subject to borrower qualifications and lender criteria.
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Rate Information: Rates, terms, and fees mentioned in this article are estimates based on publicly available information and may not reflect current market conditions or specific lender offers. Actual rates depend on creditworthiness, business financials, and lender policies.
Information May Change: Financial markets, lending regulations, and economic conditions are subject to rapid change. While we strive to keep our content accurate and up-to-date, information in this article may become outdated. Always verify current rates, terms, program availability, and regulatory requirements with lenders and official sources before making financial decisions.