What is the difference between SBA Express and a 7(a) Small loan?
Short answer
A 7(a) Small loan is a term loan up to $350,000 with a higher guaranty. SBA Express goes to $500,000, can revolve, carries a 50% guaranty and is decided only by the lender (SOP 50 10 8.1, Sec. B, Ch. 2).
A 7(a) Small loan is a term loan of up to $350,000. SBA Express can go to $500,000 and can revolve. SOP 50 10 8.1, Sec. B, Ch. 2 covers both.
Side by side
- Guaranty: 7(a) Small carries 85% on loans of $150,000 or less and 75% on larger loans. SBA Express carries 50% (Appendix 16, Para. B.2).
- Lines of credit: 7(a) Small loans are non-revolving. SBA Express can revolve.
- Credit decision: SBA or a Preferred Lender Program (PLP) lender on 7(a) Small. Only the SBA Express lender on SBA Express (Para. C.1).
- Coverage: 1.10:1 on 7(a) Small. No fixed ratio on most SBA Express loans (Para. C.2).
- Start-up equity: at least 10% of total project costs on 7(a) Small. Left to the lender on SBA Express.
- Collateral above $50,000: SBA Express follows lender policy. A 7(a) Small loan that is 50% or more working capital needs a lien on all fixed assets until fully secured. See Appendix 19, Paras. B.2 and B.3.
- Default interest: not permitted on 7(a) Small. Allowed on SBA Express (Appendix 18, Para. B).
Timing
SBA lists a turnaround time of 2-10 business days for 7(a) Small loans (sba.gov/sba-lenders, read November 8, 2026). SBA publishes no turnaround time for SBA Express; the lender makes the credit decision.
When one becomes the other
A 7(a) Small applicant that misses the coverage ratio must be processed under Standard 7(a) or SBA Express procedures (Para. C.2.a).
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