SBA Express loans: rates, terms and lines of credit

Who is an SBA Express loan for?

SBA Express suits established businesses that want SBA terms on a smaller loan or a line of credit and value a simpler, lender-driven process. Common uses include:

• Working capital lines of credit to smooth out seasonal or uneven cash flow.
• Equipment, renovations and technology the business will use for years.
• Refinancing expensive short-term business debt, under the SBA’s refinancing rules.
• Smaller business purchases, following the SBA’s acquisition rules.

Because the SBA guarantees less of an Express loan, the lender carries more of the risk. Some lenders reserve Express for borrowers with strong credit, steady cash flow and an existing banking relationship.

How does an SBA Express loan work?

Express is part of the 7(a) program, but the approval works differently. Lenders with SBA Express authority make the credit decision themselves, using their own application, underwriting and loan documents for most of the process, plus required SBA forms such as SBA Form 1919. There’s no separate SBA credit review before the loan is approved.

That delegated authority is why Express decisions can come faster. The SBA no longer publishes a target turnaround time for Express loans, so how quickly you hear back depends on the lender and on how complete your application is.

The trade-off is a smaller guarantee. The SBA guarantees 50% of an Express loan, compared with 75%–85% on other 7(a) loans. Not every SBA lender offers Express, and those that do set their own credit standards.

How is SBA Express different from a standard 7(a) loan?

Feature	SBA Express	Standard 7(a) loan
Maximum loan	$500,000	$5 million
SBA guarantee	50%	75%–85%
Who approves the loan	The lender, under its Express authority	Preferred lenders approve it themselves; other lenders send it to the SBA
Revolving lines of credit	10 years. Maximum for revolving lines, including the term-out period; no draws after 60 months	Available through CAPLines (working capital loans)

Rate caps, maximum terms and eligibility rules are the same for both. If you need more than $500,000, a standard 7(a) loan is the next step. For requests of $350,000 or less, a 7(a) Small Loan offers streamlined underwriting with the larger standard guarantee, which can make lenders more willing to say yes.

Can an SBA Express loan be a line of credit?

Yes. An Express loan can be set up as a revolving line of credit that you draw on, repay and draw on again. The SBA sets a few limits:

• Total term: up to 10 years, counting both the draw period and the term-out period that follows it.
• Term-out: once draws stop, the balance converts to a term loan. The term-out period must be at least as long as the draw period.
• Draw cutoff: no new draws are allowed after the cutoff shown in the table above, even if the line has room left.

Definition

Term-out: the repayment period after a revolving line stops allowing draws, when the outstanding balance is paid down on a set schedule like a term loan.

What are SBA Express loan interest rates?

Express loans follow the same maximum rates as every 7(a) loan. The lender sets your rate, but it can’t exceed a base rate, usually the prime rate, plus a margin that shrinks as the loan gets bigger. With the prime rate at 7.00%, the caps are:

Rates can be fixed or variable. A variable rate moves with prime, so your payment, or the cost of a line you’ve drawn on, can change. Lenders can price below the maximum, so ask each one for its rate and fees in writing.

How long are SBA Express loan terms?

Express term loans use the standard 7(a) maximum terms, based on what the money pays for:

• Working capital, inventory and goodwill: up to 10 years
• Equipment: up to 10 years, or longer when the equipment’s useful life supports it
• Commercial real estate: up to 25 years, plus the construction period
• Revolving lines of credit: up to 10 years, including the term-out period

When a loan covers several uses, the lender blends the terms. For buildings, also compare the options on our commercial real estate loans page.

What fees does an SBA Express loan have?

Express loans pay the standard 7(a) upfront guaranty fee. The fee is charged on the guaranteed portion of the loan, and the SBA guarantees only 50% of an Express loan, so the fee is generally lower in dollars than on a standard 7(a) loan of the same size.

For loans approved in fiscal year 2027 (October 1, 2026, through September 30, 2027), the SBA waives the upfront fee on Express loans to veteran-owned businesses. The lender also pays the SBA an annual service fee of 0.55% of the guaranteed balance. Ask for a written estimate of any closing costs.

What are the requirements for an SBA Express loan?

Express loans follow the same eligibility rules as other 7(a) loans. To qualify, a business generally needs to:

1. Operate for profit in the United States and meet the SBA’s size standards for its industry.
2. Be owned by U.S. citizens or nationals. Since March 1, 2026, every owner (and every guarantor the SBA requires) must be a U.S. citizen or U.S. national living in the U.S.; lawful permanent residents are no longer eligible.
3. Meet the lender’s credit standards. The SBA sets no minimum credit score, but with a smaller guarantee, lenders may set a higher bar.
4. Put in equity when required: at least 10% for a business purchase. For start-ups, the SBA Express lender sets how much equity it requires.
5. Provide collateral when the lender requires it. Lenders don’t have to take collateral on loans of $50,000 or less.
6. Have owners of 20% or more personally guarantee the loan.
7. Not be an ineligible business type, such as a lender, a passive real estate investor or a business primarily engaged in gambling.

How do you find the right lender for an SBA Express loan?

Each lender decides whether to offer Express at all, which loan sizes and industries it will consider, and whether it offers lines of credit as well as term loans. Applying to a lender that rarely makes Express loans like yours can cost you weeks.

The SBA’s public loan records show which lenders actually make Express loans, and for which industries and states. SBA Loan Connect ranks lenders using that data, so you can see who funds loans like yours before you apply. Partner lenders are labeled. See how we rank lenders.