What are SBA Express loans and how do you apply?

SBA Express loan key terms

What is an SBA Express loan?

The SBA Express loan is a streamlined program designed to reduce paperwork and speed up funding. The maximum loan amount is $500,000. 

Unlike 7(a) Small loans, SBA Express loans are processed exclusively under the lender's delegated authority, meaning the lender makes the final credit decision without prior SBA review. This allows for a loan number to be issued quickly (often within 36 hours). While an SBA loan number can be issued quickly (often within 36 hours), funding depends entirely on lender underwriting, documentation, and closing and typically takes longer.

The main features of the SBA Express loan program are:

• Lines of credit and term loans up to $500,000 for working capital, real estate, and debt refinancing
• Terms of up to 10 years for lines of credit and working capital; up to 25 years for real estate
• Lenders are not required to take collateral for loans of $50,000 or less
• Interest rates can be fixed or variable, and are based on loan amount
• Lenders use their own forms and analysis, resulting in faster decisions than non-delegated SBA loans

SBA Express loans: pros and cons

SBA Express vs other SBA 7(a) options

The Standard 7(a) loan is the SBA's main loan program for providing small business loans and there are several different loan programs that operate under it. 

SBA Express vs Standard 7(a)

Loan amount: For the borrower, the main difference between these two programs  is likely to be loan amounts. Express loans max out at $500,000 while standard 7(a) loans go up to $5 million.

Processing: SBA Express loans are processed exclusively under the lender's delegated authority, and that means the lender makes the final credit decision without the SBA reviewing the file first. Standard 7(a) loans (unless processed by a Preferred Lender/PLP) must be submitted to the SBA for a credit decision, which takes longer.

Guaranty: The SBA guaranty protects the lender, not the borrower in case of default, and does not eliminate the borrower’s obligation to repay. But it still helps borrowers in that it helps reduce risk for the lender. The SBA guarantees 50% of an SBA Express loan. But Standard 7(a) loans offer a guarantee of 75% (for loans over $150,000) up to 85% (for loans of $150,000 or less). Because the lender retains more risk with SBA Express, credit requirements may be slightly stricter than Standard 7(a). 

SBA Express vs 7(a) Small

The 7(a) Small" refers to any Standard 7(a) loan of $350,000 or less. While the loan amounts overlap, the underwriting requirements are different. 

The credit scores: 7(a) Small loans require the lender to screen the application using the FICO® Small Business Scoring Service℠ (SBSS℠). This score ranges from 0 to 300, with a higher number representing a “better” score. If the business scores below the minimum (currently 165), the loan cannot be processed as a 7(a) Small loan and must undergo standard underwriting. The SBA is sunsetting this requirement as of March 1, 2026 though many lenders are expected to continue using the SBSS score. SBA rules and lender practices may change; confirm current requirements with your lender.

SBA Express lenders are permitted to use credit scoring, but they are not required to use the SBSS score; they may use their own internal credit analysis policies instead.

Guarantee difference: A 7(a) Small loan carries the standard 75% to 85% SBA guarantee, offering the lender significantly more protection than the 50% guarantee of SBA Express. Lenders have the choice of which loans they want to offer, and for smaller loan amounts of $350,000 or less some may want to the expedited process of the Express loans while others may prefer the higher guaranty the 7(a) Small loan offers. 

SBA Express vs Export Express

Export Express is essentially an enhanced version of SBA Express designed specifically for exporters. Like SBA Express, Export Express is streamlined, processed under delegated authority (no prior SBA review), and capped at $500,000.

Eligibility: To qualify for Export Express, the business must demonstrate that the loan proceeds will support export activity. If your business does not export, you must use SBA Express; if you export, Export Express is usually considered the superior option due to the higher guarantee coverage.

7(a) loan options comparison

SBA Express loan amounts, terms, and repayment

The SBA Express program offers loans up to $500,000. These loans generally require monthly principal and interest payments and "balloon" payments (a large lump sum due at the end of the loan) aren’t allowed. This helps protect both the lender and the borrower.

Term loan terms

Term loans are loans for a fixed amount of money. The length of the loan (maturity) depends on how you use the money. Just like you wouldn’t get a 30-year auto loan or a seven-year mortgage, the goal is to match the loan term to the useful life of the asset you are financing.

• Real Estate: If you are buying land or buildings, or renovating existing real estate, the term can be up to 25 years.
• Equipment: Loans for machinery, furniture, or fixtures are generally limited to 10 years. However, if the equipment is durable and has a useful life exceeding 10 years (according to IRS guidelines), the term can be extended up to 15 years.
• Working Capital & Inventory: Loans used to buy inventory or for general operating expenses are limited to 10 years.

For every SBA loan, the SBA guidelines state, “the loan term must be the shortest appropriate term based on the use of proceeds and the Borrower's ability to repay.”

SBA Express line of credit terms

SBA Express lines of credit can last for a maximum of 10 years. However, unlike a standard credit card that revolves indefinitely, SBA Express lines over 12 months must eventually stop revolving and enter a repayment phase.

Draw period: This is the timeframe during which you can borrow money, pay it back, and borrow it again (revolve the funds).

Term-out period: This is the repayment phase. During this time, you can no longer borrow funds; you simply make regular payments to pay off the balance.

With SBA Express lines of credit, the time you are given to pay back the loan (term-out) must be at least as long as the time you were allowed to borrow (draw).

For example, you could have a four-year draw period followed by a four-year repayment period. But you cannot have a six-year draw period with only a two-year repayment period. The repayment time must be equal to or longer than the borrowing time.

SBA loan interest rates and fees
*These are SBA-set maximums. Actual rates are determined by the lender and borrower profile and are often lower

Guaranty fees

For Express loans the guaranty fee is 50%, but the fee is 0% for eligible veteran-owned businesses. 

The SBA charges a guarantee fee based on the loan amount and term. Your lender might also charge packaging or other fees.

Other fees

Lenders can also charge borrowers reasonable packaging fees for services such as preparing a business plan, cash flow projections, or other documents related to the application, broker fees, and consulting on the loan. Note that not all lenders charge these fees.

They can charge a flat fee of $2,500 for these services, and if they charge more than that they must itemize charges in SBA Form 159.

For fees above $2,500, lenders must itemize the costs. If charging based on a percentage of the loan amount, the fee generally cannot exceed:

• 5% for loans of $150,000 or less; 
• 3% for loans over $150,000

SBA Express loans eligibility requirements

To qualify for an SBA Express loan, your business must meet the core requirements for all SBA 7(a) loans, in addition to the specific underwriting standards set by the individual lender.

Core SBA Eligibility

Operating business: The business must be for-profit, engaged in lawful business activities and not operating in a restricted industry, and located in the United States.

Size: The business must be considered "small" according to SBA size standards (based on tangible net worth/income or industry-specific employee/revenue limits).

Government debt: The applicant must not have a delinquent federal debt or a prior loss to the government. (A CAIVRS check will be required).

Equity injection: Decisions regarding equity injection (down payment by the owner) and how to weigh past financial difficulties (like a past bankruptcy) are largely left to the lender's business judgment, rather than strict SBA mandates. The exception is for start-ups (one year or less in business).

What documents do you need to apply?

The documentation required for an SBA Express loan is designed to be streamlined. Because SBA Express loans are processed under delegated authority, the lender can, for the most part, use its own internal forms and procedures rather than submitting extensive paperwork to the SBA for review.

1. Mandatory SBA forms

Even though the process is streamlined, there are required forms: 

Borrower information form, SBA Form 1919  is required for all owners with 20% or greater ownership, as well as any key employee hired to manage day-to-day operations, if applicable. 

Personal financial information form, SBA Form 413, must be signed by each proprietor;  general partner; managing member of a limited liability company (LLC); and each owner of 20% or more of the equity (including the assets of the owner’s spouse and any minor children); and (5) any person providing a guaranty on the loan.

2. Financial statements

These requirements will vary. If the lender does not typically use business financial statements or tax returns for credit decisions (e.g., they rely on a credit scoring model), they are not required to collect extensive financial statements from you.

But if the lender uses traditional underwriting, and its internal policy requires reviewing financial statements for non-SBA loans of this size, they must collect those same documents from you.

3. Debts

If you will refinance debt, you must provide copies of the notes being refinanced, security agreements, leases, and payment transcripts for the most recent 12 months.

4. Franchises

Franchise documents must be provided so the lender can verify eligibility against the SBA Franchise Directory.

5. Promissory note

The lender will provide its own note form which must be legally enforceable and assignable.

6. Security/collateral documents

Any mortgages, deeds of trust, or security agreements required by the lender's internal collateral policies.

How to apply for an SBA Express loan

Step 1: Find an authorized SBA Express Lender

Unlike Standard 7(a) loans where many banks can submit applications to the SBA for review, SBA Express loans can only be processed by lenders who have been specifically granted "Express" authority by the SBA. You must apply directly with one of these lenders.

Step 2: Complete the mandatory government forms

• Borrower information form: SBA Form 1919
• Personal financial statement: SBA Form 413 (or lender's equivalent) dated within 120 days

Step 3: Submit lender-specific application materials

SBA Express lenders are allowed to use their own application forms, internal credit memoranda, and notes. That means most of the application package will look like a standard commercial loan application for that specific bank. You will generally need to provide:

Financial statements: Business financial statements or tax returns are typically required, though if the lender uses a credit scoring model, like the SBSS score. For its non-SBA loans of similar size, it may rely on that score instead of detailed financial statement analysis. Tax transcripts, if used for underwriting, must be included.

Step 4: Undergo credit and eligibility review

The lender will underwrite your loan using their internal policies for similarly-sized non-SBA commercial loans.

Credit scoring: Many Express lenders use a business credit scoring model, like the SBSS score, to assess your creditworthiness.

Collateral review: If collateral is required, 

• Loans of $50,000 or less: The lender is not required to take collateral.
• Loans over $50,000: The lender follows its own collateral policies. This usually involves taking a lien on business assets (liquid assets, fixed assets).

Documentation of status: For non-citizens, documentation of U.S. National and/or Legal Permanent Resident (LPR)/USCIS status (“green card”) verification must be provided.

Valuations: If you are using the loan to buy a business, the lender must obtain a business valuation. If buying real estate, an appraisal is generally required.

Step 5: Loan authorization and closing

Once the lender approves your request, they submit the loan data to the SBA via the E-Tran system to receive an SBA loan number.

Closing documents: You will sign a promissory note and guaranty agreements. The lender may use their own versions of these documents or SBA Forms 147 and 148.

Disbursement: The lender disburses the funds to you, but before it does, it must check for negative changes in your financial condition since the application.

How long does it take to get an SBA Express loan?

Although this loan is designed to be faster and more streamlined than other SBA loans, don’t expect to get funds in a few days. Once the loan has been submitted to the SBA, the SBA lender can get an SBA loan number quickly. But that does not include all the time needed to complete the loan application process. Expect up to two months, though some lenders are able to get most completed in 30 days or so.

Common sources of delays:

Incomplete documentation: Missing signatures, unanswered eligibility questions, or failure to disclose all co-borrowers on the borrower information form 1919 or the personal financial information form 413 will stop the process.

Collateral valuation: While loans under $50,000 do not require collateral, larger loans involving real estate or significant assets trigger valuation requirements. Delays frequently occur when waiting for a required commercial real estate appraisal or a valuation for vehicles worth more than $20,000.

Bank verification: Lenders must verify the source of any required equity injection (down payment) and make sure there aren’t any adverse changes in the borrower's financial condition prior to the funds being disbursed to the borrower. 

How to choose the best SBA Express lender

Because the SBA Express program delegates a lot of the decision-making to the lender, the application experience can be different from one bank to another. Unlike Standard 7(a) loans where the SBA reviews the file, SBA Express loans are processed only through the lender’s delegated authority. This means the lender — not the SBA — makes the final credit decision and controls the timeline.

You’ll want to find a lender with the expertise to guide your business through approval.  Ask about:

1. Experience and delegated authority

Ask if they process Express loans in-house or use a Lender Service Provider. High-volume lenders typically have streamlined, digital processes, while infrequent users may struggle with eligibility rules and cause delays.

2. Packaging support and documentation

Ask for a document checklist and ask about credit score requirements. (Not all lenders will reveal minimum credit scores.)

3. Fees and costs

Ask whether they charge a flat packaging fee and how much it is. If they charge itemized fees, ask for an estimated fee schedule. 

4. Industry experience

Find out whether the lender works with borrowers in your industry. Some lenders have expertise in certain industries, and may avoid others. 

5. Expected timeline

Ask about typical turnaround time from application to funding. The SBA system issues loan numbers almost instantly, so delays usually come from the lender's internal underwriting (or borrowers failing to provide documentation), not the SBA.

6. Servicing 

A dedicated SBA loan servicing team should manage routine actions, like lease subordinations or line of credit renewals. 

The bottom line

The SBA Express loan can be a great fit for qualified small business owners who want the benefits of an SBA loan in terms of rates and fees, and who are looking for  $500,000 or less in funding. 

While these loans can be faster than other types of small business loans, they won’t be as fast as some non-SBA loans. Credit and other qualifications may also be higher. 

This content is for informational purposes only and is not legal, tax, or financial advice. SBA programs and lender requirements vary.

Frequently asked questions