# What debt service coverage does SBA Express require?

**Short answer:** SBA sets no fixed ratio for most SBA Express loans. The lender must show reasonable assurance of repayment (SOP 50 10 8.1, Sec. B, Ch. 2, Para. C.2.b.iii). Buying a business is different: Appendix 15 requires 1.15:1 or 1.25:1.

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Last checked: 2026-11-08

SBA sets no fixed debt service coverage ratio for most SBA Express loans. SOP 50 10 8.1, Sec. B, Ch. 2, Para. C.2.b.iii says the credit analysis must demonstrate a reasonable assurance of repayment. It names no number, and the lender's own standards apply.

## How that compares

- 7(a) Small: 1.10:1 for purposes other than changes of ownership (Para. C.2.a).
- Standard 7(a): 1.15:1 (Sec. B, Ch. 1, Para. C).

If a 7(a) Small applicant does not reach the required ratio, the loan must follow Standard 7(a) or SBA Express procedures (Para. C.2.a).

## Buying a business

SBA Express gets no reduced standard on a change of ownership (Para. A.2.b). Appendix 15, Para. C.2.b sets the minimum by deal type:

- Initial Acquisition, Owner Buyout, and employee stock ownership plan (ESOP) and Cooperative transactions: 1.25:1.
- Business Expansion: 1.15:1.

## What lenders look at

The lender's analysis may include credit scoring, but a scoring model can only supplement its usual credit analysis (Para. C.2.b.iv). Coverage minimums vary by lender, so ask which ratio the lender uses and how it calculates cash flow.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. C.2 (Para. C begins p. 127)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 1, Para. C (p. 118)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Appendix 15, Para. C.2.b (Para. C begins p. 371)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)