The short answer: choose SBA Express for up to $500,000 when speed matters, because the lender approves it in-house. Choose a standard 7(a) loan for up to $5 million for almost any business purpose. Choose a 504 loan to buy or build the property your business occupies, with a fixed rate and as little as 10% down.
SBA Express vs 7(a) vs 504, side by side
| SBA Express | Standard 7(a) | SBA 504 | |
|---|---|---|---|
| Maximum loan | $500,000 | $5 million | $5 million from the SBA-backed CDC portion ($5.5 million for small manufacturers and certain energy projects); the bank loan alongside it can make the project larger |
| SBA guaranty | 50% | 85% at $150,000 or less, 75% above | The CDC portion is backed by a 100% SBA-guaranteed debenture; the bank loan is not guaranteed |
| Best for | Working capital, lines of credit, equipment, smaller purchases | Almost any business purpose: working capital, equipment, real estate, buying a business, refinancing | Buying, building or renovating owner-occupied real estate, and machinery with a useful life of 10+ years |
| Interest rate | Capped at Prime plus 3.0% to 6.5% by loan size. Maximum today: 13.50% at $50,000 or less, 10.00% above $350,000 | Same caps as SBA Express. Maximum today: 10.00% above $350,000 | Fixed on the CDC portion, pegged to the 10-year Treasury; the bank sets the rate on its portion |
| Longest term | 25 years for real estate; 10 years for a line of credit | 10 years, or 25 years for real estate | 10, 20 or 25 years |
| Who approves | The lender decides under its delegated SBA Express authority | The lender, with SBA review unless the lender has delegated authority; SBA turnaround 5 to 10 business days | The bank, a Certified Development Company (CDC) and SBA |
| Your equity | Set by the lender | Set by the lender | At least 10% of the project cost |
| Collateral | Not required up to $50,000; above that the lender's own policy, and no decline solely for thin collateral | Same as SBA Express | The financed property or equipment |
| Upfront fee, FY2027 | 2% of the guaranteed portion at $150,000 or less, 3% above; $0 for veteran-owned businesses | 2%, 3%, then 3.5% to 3.75% of the guaranteed portion as the loan grows | Separate 504 fee schedule |
| Working capital | Yes | Yes | No |
Program terms from sba.gov (7(a) loan types for lenders, 7(a) loans, 504 loans, read 2026-10-30), 13 CFR 120.214(d) for rate caps, and SBA Information Notice 5000-881797 for FY2027 fees. Rates update live from the WSJ Prime Rate.
Which SBA loan fits your business?
- You need $500,000 or less, or a line of credit: SBA Express. It is the only one of the three built for a revolving line, and most Express loans are small: the median in FY2025 was $50,000, and 78% were lines of credit (SBA Express statistics).
- You need more than $500,000, or you are buying a business: standard 7(a). It goes to $5 million, carries a larger SBA guaranty, and covers a change of ownership.
- You are buying, building or renovating your own building: compare 504 and 7(a). A 504 loan fixes the rate on the SBA portion for up to 25 years and needs as little as 10% down. A 7(a) loan can also finance real estate and can fold in working capital, which 504 cannot.
- You need money within weeks for inventory, payroll or a contract: SBA Express, or a 7(a) loan from a lender with delegated authority.
SBA Express vs standard 7(a): speed against guaranty
SBA Express trades guaranty for speed. The lender uses its own forms and makes the credit decision itself, but SBA guarantees only 50% of the loan instead of 75% to 85%. Because the lender carries more of the risk, some lenders hold Express borrowers to their regular credit standards, and the program stops at $500,000.
The rate caps are the same for both: Prime plus 6.5% at $50,000 or less, 6.0% to $250,000, 4.5% to $350,000, and 3.0% above. Today that puts the ceiling between 10.00% and 13.50%. The guaranty fee is charged on the guaranteed portion, so an Express loan's smaller guaranty also means a smaller fee: $7,500 on a $500,000 Express loan against $11,250 on a $500,000 standard 7(a) loan (fee calculator).
SBA 504 vs 7(a) for real estate and equipment
A 504 project is usually split three ways: a bank loan for up to 50% of the cost with the first lien, a CDC loan for up to 40% backed by an SBA debenture, and at least 10% from the borrower. The CDC portion carries a fixed rate for 10, 20 or 25 years.
A 7(a) loan finances the same building with one loan from one lender, usually at a variable rate, and can include working capital, inventory or the purchase of a business. 504 cannot fund working capital or inventory, and neither program finances speculative or investment real estate.
What each one costs
Use the SBA Express payment calculator for the monthly payment against today's rate ceiling, and the SBA guaranty fee calculator for the FY2027 upfront fee on Express and standard 7(a) loans. Current caps are on SBA Express loan terms.
Who makes these loans
Banks, credit unions and other SBA lenders make all three; for 504, a CDC joins the bank. The most active SBA Express lenders, and where they lend, are on SBA Express lenders. To compare offers without applying lender by lender, tell us what your business needs and we route the request to lending partners.