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SBA Express Loan Terms
Find out today's interest rates and other terms for getting an SBA Express loan.
An SBA Express loan carries loan terms similar to those of the standard SBA 7(a) loan, but with a few key differences. This piece dives into the higher-level terms of SBA Express loans, offering a table to compare these rapidly closing loans with other SBA financing.
Loan Amounts
SBA Express loans have a lot going for them, but their main drawback is the amount of funding they can provide. These loans are capped at $500,000, significantly less than the SBA 7(a) program's $5 million maximum.
Financing Timelines
SBA Express loans are very, very fast. Expect a determination on your application within three days, maximum. And after that, funds will typically be dispersed in as few as 20 days.
The SBA 7(a) loan, on the other hand, takes a bit longer. Approvals take up to two weeks, generally speaking, and fund dispersal can take up to a month and a half following an approval.
Loan Terms
SBA Express loans offer terms up to 25 years if the financing is for real estate. Otherwise, five to 10 years is the norm, with seven-year maximums for lines of credit.
Interest Rates
Variable interest rates for SBA Express loans cap at the WSJ Prime Rate plus 4.5% for loans of more than $50,000. Smaller loans max out at the WSJ Prime plus 6.5%.
Fixed-rate financing is also available, but it is less common. For loans in excess of $250,000, expect a rate 5% above the WSJ Prime. For loans between $50,000 and $250,000, the fixed interest rate will be 6% above, with further increases for even smaller loans.
Current SBA Express Interest Rates →
Requirements for an SBA Express loan
SBA Express loans are a great way for small businesses to get funding easily. To qualify, businesses must meet the eligibility requirements determined by the SBA 7(a) program. These requirements include operating for profit in the USA, having been in operation for at least two years, meeting SBA size standards, and having already looked for alternative funding.
Furthermore, there must be no delinquencies or debt obligations to the US government. Certain businesses may be ineligible, and borrowers must have good character and a credit score of 600 to 650 to be approved. 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.
Learn more about SBA Express Loan Requirements →
Current SBA Rates, Compared
Take a look at the differences between live SBA loan rates below.
Smaller Guarantees
A key difference between SBA Express and SBA 7(a) loans is the percent of the loan the Small Business Administration guarantees.
For an SBA Express loan, the SBA will guarantee 50%, regardless of amount. Compare this to most other types of SBA 7(a) loans, where the Small Business Administration backs 75% for amounts above $150,000, and 85% for smaller loans.
Comparing SBA Express and SBA 7(a) Loans
The table below compares some of the key elements of SBA Express loans with those of the wider SBA 7(a) loan program.
SBA Express Loan | SBA 7(a) Loan | |
|---|---|---|
Maximum Loan Amount | $500,000 | $5 million |
Max. Variable Interest Rates | WSJ Prime plus 4.5% to 6.5%, based on the loan amount. | WSJ Prime plus 2.25% to 4.75%, depending on loan amount and term. |
Max. Fixed Interest Rates | WSJ Prime plus 5% to 8%, based on the loan amount. | WSJ Prime plus 5% to 8%, based on the loan amount. |
Term Length | Up to 25 years for real estate. | Up to 25 years for real estate. |
Application Turnaround Time | Two to three days. | 10 to 14 days. |
Fund Dispersal Time | 20 to 30 days after approval. | 30 to 45 days after approval. |
SBA Guarantee | 50% of the loan amount. | 75% to 85% of the loan amount. |
Collateral | Lenders may use their existing collateral policies for amounts above $25,000. | Lenders are required to collateralize loans above $350,000 using fixed assets and potentially trading assets. |
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