SBA 7(a) Standard vs. Express Loans: What’s The Difference?

The standard SBA 7(a) loan and the SBA Express loan have a variety of differences, including:

• Maximum Loan Amount:

  • Standard SBA 7(a) Loan: $5 million

  • SBA Express Loan: $500,000

• Average Approval Time:

  • Standard SBA 7(a) Loan: 60-90 days

  • SBA Express Loan: 45-60 days

• Required Collateral:

  • Standard SBA 7(a) Loan: Typically requires collateral equal to loan amount

  • SBA Express Loan: No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $500,000

The Similarities Between Standard 7(a) and SBA Express Loans

Despite their differences, SBA 7(a) loans and SBA Express loans have a number of major similarities, including:

• Credit Score Requirements: 640 minimum, with most lenders preferring 680+

• Loan Terms:

  • Working Capital: Up to 10 years

  • Equipment: Up to 10 years

  • Real Estate: Up to 25 years

Plus, both kinds of loans are subject to general SBA eligibility requirements, meaning:

• Businesses must operate for profit

• Businesses must be in an approved industry (for example, no lending, gambling, speculation, real estate investing, or illegal businesses)

• Businesses must already have exhausted other financing methods (personal savings, friends and family, bank loans, etc.)

When Is An SBA Express Loan Your Best Option?

The main benefit of the SBA express loan is speed; getting an SBA Express loan can cut down the entire loan approval process by a month or more. So, if your business is in a financial crunch due to unexpected expenses, or needs new working capital to finance a big order or a busy season, getting an SBA Express loan could be the perfect solution.

Loan Comparison Table

	SBA Express	Standard SBA 7(a)
Maximum Loan Amount	$500,000	$5 million
Average Approval Time	45-60 days	60-90 days
Required Collateral	No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $500,000	Typically requires collateral equal to loan amount

Related Questions

What are the differences between SBA Express Loans and Standard SBA 7(a) Loans?

The standard SBA 7(a) loan and the SBA Express loan have a variety of differences, including:

• Maximum Loan Amount:
  • Standard SBA 7(a) Loan: $5 million
  • SBA Express Loan: $350,000
• Average Approval Time:
  • Standard SBA 7(a) Loan: 60-90 days
  • SBA Express Loan: 45-60 days
• Required Collateral:
  • Standard SBA 7(a) Loan: Typically requires collateral equal to loan amount
  • SBA Express Loan: No required collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $350,000

What are the eligibility requirements for SBA Express Loans?

To qualify for an SBA Express loan, businesses must meet the eligibility requirements determined by the SBA 7(a) program. These requirements include:

• Operating for profit in the USA
• Having been in operation for at least two years
• Meeting SBA size standards
• Having already looked for alternative funding
• No delinquencies or debt obligations to the US government
• Good character and a credit score of 600-650

Certain businesses may be ineligible, and additional documents such as a personal history statement and financial projections may be required. If approved, the funds will be disbursed within 90 days and a guaranty fee will be required.

What are the advantages of SBA Express Loans over Standard SBA 7(a) Loans?

The main advantage of SBA Express Loans over Standard SBA 7(a) Loans is speed. SBA Express Loans can cut down the entire loan approval process by a month or more, making them ideal for businesses in a financial crunch due to unexpected expenses or needing new working capital to finance a big order or a busy season. Additionally, SBA Express Loans have a maximum loan amount of $350,000, with no minimum, while Standard SBA 7(a) Loans have a maximum loan amount of $5 million. SBA Express Loans also do not require collateral under $25,000, and lenders can use their existing collateral policy for loans between $25,000 and $350,000, while Standard SBA 7(a) Loans typically require collateral equal to the loan amount.

Sources: www.sbaexpress.loans/blog/sba-express-vs-standard-sba-7a-loans www.sba7a.loans/sba-7a-loans-small-business-blog/what-are-the-sba-7a-loan-programs

What are the disadvantages of SBA Express Loans compared to Standard SBA 7(a) Loans?

The main disadvantage of SBA Express Loans compared to Standard SBA 7(a) Loans is the maximum loan amount. SBA Express Loans have a maximum loan amount of $350,000, while Standard SBA 7(a) Loans have a maximum loan amount of $5 million. Additionally, SBA Express Loans typically require no collateral under $25,000, while Standard SBA 7(a) Loans typically require collateral equal to the loan amount.

Source: www.sbaexpress.loans/blog/sba-express-vs-standard-sba-7a-loans

What are the maximum loan amounts for SBA Express Loans and Standard SBA 7(a) Loans?

The maximum loan amount for a Standard SBA 7(a) Loan is $5 million, while the maximum loan amount for an SBA Express Loan is $350,000.

Source 1 Source 2

In this article:
1. SBA 7(a) Standard vs. Express Loans: What’s The Difference?
2. The Similarities Between Standard 7(a) and SBA Express Loans
3. When Is An SBA Express Loan Your Best Option?
4. Loan Comparison Table
5. Related Questions
6. Get Financing
Tags
• SBA Express Loans
• SBA Express Financing