Head to head
SBA Express loan vs SBA 7(a) loan
Express is a 7(a) with the guarantee cut in half in exchange for speed. The lender uses its own forms and gets an SBA answer within 36 hours, and carries more of the risk for doing so.
| SBA Express loan | SBA 7(a) loan | |
|---|---|---|
| Typical amount | Up to $500,000 | Up to $5 million |
| Cost | Higher permitted spread than standard 7(a) | Prime + 3% to prime + 6.5%, by loan size |
| Time to funding | Days to a few weeks | 30-90 days |
| Term | Up to 10 years; lines up to 10 years | Up to 10 years, 25 with real estate |
| Relative expense | $$ | $ |
Cost bands are editorial judgements expressed in APR-equivalent terms so products quoting factor rates and discount fees can be compared with products quoting interest. They indicate relative expense, not quotes. Methodology.
SBA Express loan
Usually chosen when
- The amount is under $500,000
- You want a revolving line rather than a lump sum, which standard 7(a) rarely offers
- Weeks matter
- There is already a relationship with an Express lender
SBA 7(a) loan
Usually chosen when
- The amount exceeds $500,000
- The deal is an acquisition or involves real estate, where amortisation matters more than speed
- The stronger 75% to 85% guarantee would make a marginal file approvable
Common questions
- Is SBA Express really approved in 36 hours?
- The 36 hours is the SBA's response to the lender, not your funding timeline. Closings still commonly take one to four weeks depending on how fast documents arrive.
Other comparisons
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