Does an SBA Express loan require collateral?
Short answer
Not at $50,000 or less. Above that, up to $500,000, the lender may use its own collateral policies for similar non-SBA loans. Source: SOP 50 10 8.1, App. 19, Para. B.3.
Not at $50,000 or less. SOP 50 10 8.1, App. 19, Para. B.3, says collateralProperty a lender can take and sell if a loan is not repaid. is not required at that size.
For loans above that line, up to the $500,000 program limit, the lender may use its own collateral policies for similar non-SBA loans. Para. B.3 lets those policies replace SBA's detailed procedures. SBA does not publish a fixed asset list for this range. Your lender's written policy fills that role, and it varies by lender.
Some limits still bind the lender:
- No decline for collateral alone. SBA's lender page says a loan is not to be declined solely on the basis of inadequate collateral (sba.gov/sba-lenders, read November 8, 2026).
- General Requirements still apply. The lender must use commercially reasonable practices and cannot use a piggyback structure (App. 19, Para. A.1).
- Cash flow still decides. The SOP requires reasonable assurance of repayment from cash flow, regardless of collateral (Sec. B, Ch. 2, Para. C, p. 127).
Buying a business changes the answer. An SBA Express loan used for a change of ownership must meet Appendix 15's fully secured definition. The lender need not count other commercial real estate held by the borrower or guarantors (Sec. B, Ch. 2, Para. A.2).
An SBA Express loan with no collateral still needs a guaranty from each owner of 20% or more (Sec. A, Ch. 5, Para. A).
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