# 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).

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Last checked: 2026-11-09

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).

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 2 (p. 125)](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 16, Para. B.2 (Para. B begins p. 388)](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 19, Para. B (p. 408)](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 18, Para. B (p. 401)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA, Terms, conditions and eligibility for 7(a) lenders, sba.gov/sba-lenders (read November 8, 2026)](https://www.sba.gov/sba-lenders)