SBA Express line of credit
Short answer
An SBA Express line of credit is a revolving loan of up to $500,000 with a 50% SBA guaranty. It can run up to 10 years, with draws for up to 60 months (SOP 50 10 8.1, App. 17, Para. B.3). About 7 in 10 Express loans are lines.
- Largest SBA Express line
- $500,000
- SBA Express loans are lines of credit
- 7 in 10
- SBA rate cap today, by loan size
- 10.00% to 13.50%
- Longest draw period
- 60 months
How an SBA Express line of credit works
A line of credit lets you borrow up to a limit, repay, and borrow again. You pay interest only on what you have drawn. An SBA Express line works the same way, and SBA guarantees 50% of it (SOP 50 10 8.1, App. 16, Para. B.2).
SBA sets the outer limits on how a line can be built (SOP 50 10 8.1, App. 17, Para. B.3):
- The line can run no longer than 10 years, including any term-out period.
- It can have no advances after the first 60 months.
- A revolving line longer than 12 months needs a term-out period at least as long as the draw period. A 10-year line can draw for up to 60 months, and then it must amortize. An 8-year line with a 2-year draw and a 6-year term-out works. An 8-year line with a 6-year draw does not.
- A line of 12 months or less can start with no term-out. It can be renewed each year within the maximum, and the lender may not charge a renewal fee. If a renewal takes the maturity past 12 months, SBA charges an added guaranty fee.
- Before amortizing payments begin, the lender can issue a new SBA Express loan. It can keep the line open or term it out over up to 10 years (Sec. B, Ch. 2, Para. B.3.b).
The lender sets the actual draw period, renewal terms and payment schedule within those limits. Ask each lender for them in writing. How the draw period and term-out fit together and how renewals work are explained in the answers section.
What it costs
| Loan amount | SBA maximum variable rate | Maximum today |
|---|---|---|
| $50,000 or less | Prime plus 6.5 percentage points | 13.50% |
| $50,001 to $250,000 | Prime plus 6.0 percentage points | 13.00% |
| $250,001 to $350,000 | Prime plus 4.5 percentage points | 11.50% |
| $350,001 to $500,000 | Prime plus 3.0 percentage points | 10.00% |
SBA caps the variable rate at Prime plus 3.0 to 6.5 percentage points, depending on loan size (13 CFR 120.214(d)). Prime is 7.00% as of Nov 10, 2026, so today's caps run from 10.00% to 13.50%. Lenders may charge less. Rates at approval in SBA's file are history, not quotes, so see the rates page for today's numbers.
- SBA guaranty fee. On a line with a maturity over 12 months, the FY2027 upfront fee is 2% of the guaranteed portion on loans of $150,000 or less. On larger SBA Express lines it is 3% of the guaranteed portion. On a maturity of 12 months or less, it is 0.25% of the guaranteed portion (Information Notice 5000-881797, p. 2). On a $100,000 line over 12 months, SBA guarantees $50,000, so the upfront fee is $1,000.
- Veterans. SBA Express loans to businesses owned and controlled by a veteran or the spouse of a veteran carry a $0 upfront fee in FY2027.
- What a lender can and cannot charge. The lender pays SBA's annual service fee and may not pass it to you. It may charge reasonable packaging fees and out-of-pocket costs, which it must itemize. It may not charge commitment, origination, broker, referral and similar fees, points, prepayment fees and renewal fees (SOP 50 10 8.1, Sec. A, Ch. 4, Para. C).
Run your own numbers with the SBA Express line of credit calculator. It covers the draw period and the payment step-up at term-out. The guaranty fee calculator shows the SBA fee on any loan size.
What a line can and cannot pay for
A line of credit fits short-term, repeating needs that repay themselves from sales: payroll between customer payments, inventory ahead of a busy season, materials for a job. Proceeds must be used only for business purposes (SOP 50 10 8.1, Sec. B, Ch. 2, Para. A).
A line cannot buy a business. SBA does not allow a change of ownership to be financed with a revolving facility (SOP 50 10 8.1, Sec. A, Ch. 2, Para. A). If you are buying a business, read buying a business with SBA Express. Long-lived purchases fit a term loan better. Read when a line of credit fits and when it does not, and how a line and a term loan differ.
Who uses them: SBA's loan data
Counts come from SBA's 7(a) loan file. They show loans approved, not applications.
Lines are mostly a small-loan product. Across SBA 7(a) loans of up to $500,000 since FY2024, the share that are lines falls steadily as loans get bigger.
| Loan size | SBA 7(a) loans | Share that are lines | Share through Express |
|---|---|---|---|
| $50,000 or less | 41,521 | 60.7% | 77.0% |
| $50,001 to $150,000 | 39,653 | 26.6% | 35.3% |
| $150,001 to $350,000 | 30,329 | 22.8% | 29.6% |
| $350,001 to $500,000 | 14,846 | 16.6% | 21.0% |
All SBA 7(a) loans approved from October 1, 2023 through June 30, 2026, including SBA Express.
Lenders that made the most lines
| Lender | SBA loans since FY2024 | Share that are lines | Median loan |
|---|---|---|---|
| The Huntington National Bank | 17,492 | 43.7% | $100,000 |
| TD Bank | 7,435 | 86.0% | $50,000 |
| JPMorgan Chase Bank | 4,934 | 74.6% | $200,000 |
| M&T Bank | 6,014 | 55.1% | $50,000 |
| U.S. Bank | 7,936 | 36.0% | $49,000 |
| Wells Fargo Bank | 3,991 | 67.6% | $20,000 |
| Columbia Bank | 1,732 | 91.9% | $50,000 |
| Newtek Bank | 7,587 | 13.2% | $200,000 |
| KeyBank | 1,682 | 55.5% | $75,000 |
| Zions Bank | 2,384 | 31.2% | $110,000 |
Sorted by loans times line share. Covers all SBA 7(a) loans from each lender, not only SBA Express.
Industries where lines are most common
- Commercial and Institutional Building Construction52.0% lines, 1,056 loans
- Residential Remodelers49.1% lines, 3,771 loans
- Finish Carpentry Contractors48.5% lines, 613 loans
- Site Preparation Contractors46.1% lines, 988 loans
- Electrical Contractors and Other Wiring Installation Contractors45.5% lines, 2,079 loans
- Roofing Contractors45.1% lines, 880 loans
- New Single-Family Housing Construction (except For-Sale Builders)42.9% lines, 1,156 loans
- Painting and Wall Covering Contractors42.9% lines, 1,036 loans
Construction trades top that list, which is why we built a page on SBA loans for contractors.
How an SBA Express line compares
| Feature | SBA Express line | Working Capital CAPLine | Conventional bank line |
|---|---|---|---|
| Maximum | $500,000 | $5,000,000 | Set by the bank |
| Longest term | 10 years, including any term-out period | 10 years | Set by the bank |
| SBA guaranty | 50% | 85% on loans of $150,000 or less and 75% on larger loans | None |
| No collateral required at or below | $50,000 | $50,000 | Set by the bank |
SOP 50 10 8.1: App. 16, Paras. B.2 and B.4; App. 17, Paras. B.3 and B.5; App. 19, Paras. B.3 and B.5. Conventional bank terms vary by lender.
Export-focused businesses can also use an Export Express line, and the 7(a) Working Capital Pilot runs August 1, 2024 through July 31, 2027 (89 FR 57353). Which SBA loans can be revolving lines of credit covers each program.
Common questions about SBA Express lines of credit
Do I need collateral for an SBA Express line of credit?
Not at or below $50,000. Lenders are not required to take collateral on SBA Express loans of that size. Above it, the lender may use its own collateral policies for similar non-SBA loans (SOP 50 10 8.1, App. 19, Para. B.3). The lender may still take a lien, so ask.
Do I have to personally guarantee the line?
Yes, if you own 20% or more of the business. Each such owner must give a full personal guarantee (SOP 50 10 8.1, Sec. A, Ch. 5, Para. A.1). The lender may also ask other owners to guarantee.
What credit score do I need?
SBA sets no minimum credit score; the lender applies its own credit standards. Any cutoff you hear is that lender's policy (SOP 50 10 8.1, Sec. B, Ch. 2, Para. C). Read more on credit scores.
Can a lender cut off my line after it opens?
It can, if your loan agreement allows it. SBA Express lets lenders use non-financial default provisions if they use them on similar loans (SOP 50 10 8.1, Sec. B, Ch. 2, Para. B.4). Before you sign, ask how the lender handles reviews, reductions and renewals.
Can I pay the line off early?
Yes. A lender may not charge a prepayment fee (SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.4). SBA's subsidy recoupment fee applies only to loans with a maturity of 15 years or more (13 CFR 120.223), which a line of credit cannot reach.
How to read this
Counts come from SBA's 7(a) loan-level data release, as of June 30, 2026. The file lists loans SBA approved. It does not list declined applications, so it cannot show approval odds. We do not publish any figure built on fewer than 5 loans. A lender's past loans do not describe its current credit policy. Line-of-credit shares use loans with SBA's revolving status marked yes. How we build these pages.
Sources
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Cite this page: SBA Express line of credit. SBA Express Loans, Janover Capital LLC (data as of June 30, 2026). https://www.sbaexpress.loans/sba-express-line-of-credit/
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