SBA Express Loan Program

About SBA Express Loans

The SBA Express loan program is a simplified loan guarantee program that is essentially the same as its 7(a) loan program. The Express program is typically much faster and easier than the 7(a), however loan amounts cannot exceed $350,000. The SBA guarantees 50% of the loan and credit decisions are typically made within 36 hours.


  • Most types of businesses are eligible as long as they are for-profit and operate in the United States.
  • The firm must meet the SBA’s definition of a “small business,” which varies depending upon the type of business it is. The vast majority of businesses have no trouble meeting this definition.


  • Funds can be used for real estate, facility expansion or conversion, machinery & equipment, inventory & supplies, working capital, to purchase an existing business and to refinance existing business debt that is not already structured with reasonable terms & conditions.
  • Loan proceeds cannot be used to effect a partial change of business ownership, to reimburse funds owned to an owner, to pay delinquent taxes or for any unsound business purpose.


  • Maximum loan amount is $350,000
  • Interest rates are negotiated between the borrower and lender, may be fixed or variable, depend upon the size of the loan and are tied to the prime rate.
Loan Size Maximum Interest Rate
Over $50,000 Prime + 4.5%
$50,000 or less Prime + 6.5%


  • There is a 2% guaranty fee for loans up to $150,000 and a 3% guaranty fee for loans over that amount.
  • Maximum terms are 25 years for real estate & equipment (limited to the economic life of the asset) and 7 years for working capital (although under certain circumstances this can be stretched to 10 years).
  • Collateral may not be required for loans up to $25,000 – the bank making the actual loan makes this determination.

SBA Express loans are arranged through your local lender.

Category: State and Federal Financing

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