# How is a microloan different from a 7(a) or SBA Express loan?

**Short answer:** A microloan comes from a nonprofit intermediary, tops out at $50,000 and runs up to 7 years. A 7(a) or SBA Express loan comes from an SBA lender with a partial guaranty, and can reach $5,000,000 or $500,000.

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Last checked: 2026-11-08

A microloan is a small, fixed-rate loan from a nonprofit intermediary. A 7(a) or SBA Express loan is larger and comes from an SBA lender.

## Side by side

- **Lender.** Microloan: an intermediary. 7(a) and SBA Express: banks and other SBA lenders.
- **SBA's role.** Microloan: SBA funds the intermediary. 7(a): SBA guarantees 85% on loans of $150,000 or less and 75% on larger loans. SBA Express: 50%.
- **Maximum.** Microloan: $50,000. 7(a): $5,000,000. SBA Express: $500,000.
- **Credit decision.** Microloan: the intermediary, with no SBA credit review. SBA Express: the lender makes the credit decision without prior SBA review.
- **Rate.** Microloan: fixed, with a cap tied to the intermediary's SBA rate. 7(a) and SBA Express: a variable-rate maximum of Prime plus 3.0 to 6.5 percentage points, depending on loan size.
- **Uses.** Microloan: working capital and the purchase of materials, supplies, furniture, fixtures and equipment, with no debt payoff or real estate. 7(a): those uses plus real estate, business purchases and eligible refinancing.
- **Term.** Microloan: up to 7 years. 7(a) working capital: up to 10 years.

## Collateral

SBA's microloan rule (13 CFR § 120.707) sets no collateral standard, so the intermediary decides. On SBA Express, collateral is not required at or below $50,000 (SOP 50 10 8.1, App. 19, Para. B.3).

## Support

Intermediaries must provide marketing, management and technical assistance to borrowers (13 CFR § 120.701).

## Sources

- [13 CFR § 120.701](https://www.ecfr.gov/current/title-13/section-120.701)
- [13 CFR § 120.707](https://www.ecfr.gov/current/title-13/section-120.707)
- [sba.gov/loans/microloans (read November 8, 2026)](https://www.sba.gov/loans/microloans/)
- [sba.gov/sba-lenders (read November 8, 2026)](https://www.sba.gov/sba-lenders)
- [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, App. 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, App. 17 (p. 390)](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, App. 19, Para. B.3 (Para. B begins 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)
- [13 CFR § 120.214(d)](https://www.ecfr.gov/current/title-13/section-120.214)