Published Aug 26, 2022 · Updated Jul 24, 2026 · by Content Team
When it comes to getting a loan under the SBA 7(a) program, borrowers have a few options. The most popular among them include the standard SBA 7(a) loan, and the SBA Express loan. In this article, we’ll review some of the major differences between the two, in order to help you determine which type of financing might be the best for your small business.
SBA 7(a) Standard vs. Express Loans: What’s The Difference?
The standard SBA 7(a) loan and the SBA Express loan have a variety of differences, including:
Maximum Loan Amount:
Standard SBA 7(a) Loan: $5 million
SBA Express Loan: $500,000
Average Approval Time:
Standard SBA 7(a) Loan: 60-90 days
SBA Express Loan: 45-60 days
Required Collateral:
Standard SBA 7(a) Loan: Typically requires collateral equal to loan amount
SBA Express Loan: No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $500,000
The Similarities Between Standard 7(a) and SBA Express Loans
Despite their differences, SBA 7(a) loans and SBA Express loans have a number of major similarities, including:
Credit Score Requirements: 640 minimum, with most lenders preferring 680+
Loan Terms:
Working Capital: Up to 10 years
Equipment: Up to 10 years
Real Estate: Up to 25 years
Plus, both kinds of loans are subject to general SBA eligibility requirements, meaning:
Businesses must operate for profit
Businesses must be in an approved industry (for example, no lending, gambling, speculation, real estate investing, or illegal businesses)
Businesses must already have exhausted other financing methods (personal savings, friends and family, bank loans, etc.)
When Is An SBA Express Loan Your Best Option?
The main benefit of the SBA express loan is speed; getting an SBA Express loan can cut down the entire loan approval process by a month or more. So, if your business is in a financial crunch due to unexpected expenses, or needs new working capital to finance a big order or a busy season, getting an SBA Express loan could be the perfect solution.
Loan Comparison Table
SBA Express
Standard SBA 7(a)
Maximum Loan Amount
$500,000
$5 million
Average Approval Time
45-60 days
60-90 days
Required Collateral
No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $500,000
Typically requires collateral equal to loan amount
Related Questions
What are the differences between SBA Express Loans and Standard SBA 7(a) Loans?
The standard SBA 7(a) loan and the SBA Express loan have a variety of differences, including:
Maximum Loan Amount:
Standard SBA 7(a) Loan: $5 million
SBA Express Loan: $350,000
Average Approval Time:
Standard SBA 7(a) Loan: 60-90 days
SBA Express Loan: 45-60 days
Required Collateral:
Standard SBA 7(a) Loan: Typically requires collateral equal to loan amount
SBA Express Loan: No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $350,000
What are the eligibility requirements for SBA Express Loans?
To qualify for an SBA Express loan, businesses must meet the eligibility requirements determined by the SBA 7(a) program. These requirements include:
Operating for profit in the USA
Being an operating business (SBA sets no minimum time in business)
No delinquencies or debt obligations to the US government
Good character (SBA sets no minimum credit score; many lenders look for 600-650)
Certain businesses may be ineligible, and additional documents such as a personal history statement and financial projections may be required. If approved, the funds will be disbursed within 90 days and a guaranty fee will be required.
What are the advantages of SBA Express Loans over Standard SBA 7(a) Loans?
The main advantage of SBA Express Loans over Standard SBA 7(a) Loans is speed. SBA Express Loans can cut down the entire loan approval process by a month or more, making them ideal for businesses in a financial crunch due to unexpected expenses or needing new working capital to finance a big order or a busy season. Additionally, SBA Express Loans have a maximum loan amount of $500,000, with no minimum, while Standard SBA 7(a) Loans have a maximum loan amount of $5 million. SBA Express Loans also do not require collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $350,000, while Standard SBA 7(a) Loans typically require collateral equal to the loan amount.
What are the disadvantages of SBA Express Loans compared to Standard SBA 7(a) Loans?
The main disadvantage of SBA Express Loans compared to Standard SBA 7(a) Loans is the maximum loan amount. SBA Express Loans have a maximum loan amount of $500,000, while Standard SBA 7(a) Loans have a maximum loan amount of $5 million. Additionally, SBA Express Loans typically require no collateral under $25,000, while Standard SBA 7(a) Loans typically require collateral equal to the loan amount.