SBA Express Loan ProgramSBA Express Loan Program

Maximum loan amount

$500,000 gross, aggregated with all outstanding SBA Express, Community Advantage Pilot, Community Express and Patriot Express loans of the applicant and affiliates ($350,000 per borrower for Community Advantage SBLCs)

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Maximum SBA guaranty percentage

50%

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Maximum SBA guaranty outstanding to one borrower and affiliates

$3,750,000 across all SBA loans, including SBA Express

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Maximum variable rate

Loans of $50,000 or less: Prime or SBA Optional Peg Rate + 6.5%; $50,001 to $250,000: + 6.0%; $250,001 to $350,000: + 4.5%; $350,001 to $500,000: + 3.0%. Lenders may use their own base rate but may not exceed these maximums

legacy.sba.gov

Maximum fixed rate

Prime + 8% for loans of $25,000 or less; Prime + 7% over $25,000 to $50,000; Prime + 6% over $50,000 to $250,000; Prime + 5% over $250,000

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Lines of credit

Maximum 10 years including term-out; revolving lines over 12 months need a term-out period at least as long as the draw period, and no advances after the first 60 months

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Term loan maturity

Same as all 7(a) loans: 10 years for working capital and intangibles, equipment generally 10 years (up to 15 with IRS useful life support), real estate up to 25 years

legacy.sba.gov

FY 2027 upfront guaranty fee (maturity over 12 months)

2% of the guaranteed portion for loans of $150,000 or less (lender may keep up to 25%); 3% for $150,001 to $500,000; 0.25% for maturities of 12 months or less

legacy.sba.gov

FY 2027 upfront fee relief

$0 for SBA Express loans to businesses owned and controlled by a veteran or the spouse of a veteran; 0% for loans to manufacturers (NAICS 31-33), listed food supply chain NAICS codes and rural businesses

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FY 2027 lender's annual service fee

0.55% of the outstanding guaranteed portion; may not be passed to the borrower

legacy.sba.gov

Collateral threshold

No collateral required for loans of $50,000 or less; above $50,000 the lender may follow its own collateral policies for similarly-sized non-SBA commercial loans

legacy.sba.gov

Default interest rate

Permitted, if commercially reasonable and consistent with the lender's similar non-SBA loans (not permitted on other 7(a) Small loans)

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• Same core eligibility as all 7(a) loans: operating, for-profit business organized and located in the United States, small under SBA size standards (including affiliates), not an ineligible business type, and unable to obtain the credit on reasonable terms elsewhere.legacy.sba.gov
• Since March 1, 2026, 100% of direct and indirect owners and all SBA-required guarantors must be U.S. citizens or U.S. nationals with their principal residence in the United States, its territories or possessions.legacy.sba.gov
• Not eligible with a prior loss to the federal government (subject to SBA's case-by-case waiver for non-controlling minority owners) or delinquent federal nontax debt of the applicant or a non-supplemental guarantor.legacy.sba.gov
• The upfront fee waiver covers businesses owned and controlled by a veteran (other than one with a dishonorable or bad conduct discharge), service-disabled veterans, active duty members in the Transition Assistance Program, and spouses or surviving spouses of veterans or service members.legacy.sba.gov
• An application withdrawn, screened out or declined by SBA's processing center cannot be approved under any lender's SBA Express authority for 12 months.legacy.sba.gov

• Only lenders with SBA Express authority may make SBA Express loans, and they may not send an SBA Express loan to SBA for non-delegated processing. Lenders must first be approved 7(a) lenders (an application for SBA Express can be made at the same time).legacy.sba.gov
• To obtain authority, a lender applies to SBA's Office of Credit Risk Management at DelegatedAuthority@sba.gov and must meet the delegated authority criteria of 13 CFR 120.440; lenders new to SBA must also hold at least 20 commercial loans of $500,000 or less and have trained SBA loan staff. SBA may cap a new SBA Express lender at $25 million of SBA Express loans in its first year.legacy.sba.gov
• Approved lenders sign SBA Form 2424, Supplemental Loan Agreement SBA Express Program, within 30 days; initial terms for lenders new to SBA are 1 year and renewals are generally up to 2 years.legacy.sba.gov
• Lenders close, service and liquidate SBA Express loans using the same practices they use for similarly-sized non-SBA commercial loans, record post-approval modifications in E-Tran within 15 business days after final disbursement, and report loans monthly on SBA Form 1502.legacy.sba.gov
• SBA Express lenders may close and disburse immediately, but must then verify business financial data against IRS tax transcripts; if the lender does not use business financials (for example with some scoring models), it must still obtain transcripts to confirm returns were filed and to determine size.legacy.sba.gov
• Non-financial default provisions are allowed if substantive, agreed in writing at closing and consistent with the lender's non-SBA loans, but a lender may not request guaranty purchase based solely on a non-financial default.legacy.sba.gov
• The lender must list 100% of direct and indirect ownership in the SBA loan system and certify that no owner or SBA-required guarantor is an ineligible person.legacy.sba.gov
• When the veteran upfront fee waiver is used, the lender must document the borrower's eligibility for the fee relief in the loan file.legacy.sba.gov

• The lender makes the credit decision without prior SBA review, using appropriate, prudent and generally accepted credit analysis (which may include credit scoring) consistent with its similarly-sized non-SBA commercial loans.legacy.sba.gov
• The March 1, 2026 sunset of the SBSS score did not change SBA Express; lenders may continue to use business scoring models permitted by their primary federal regulator.legacy.sba.gov
• The credit analysis must show reasonable assurance of repayment and the specific factors showing credit is not available elsewhere on reasonable terms.legacy.sba.gov
• A business credit scoring model may be used only in addition to the lender's credit analysis, may not rely solely on consumer scores, must be validated as predictive of loan performance, and results must be kept in the file for SBA review.legacy.sba.gov
• Whether to require an equity injection and how to weigh a past bankruptcy are left to the lender's judgment, but if the lender verifies equity on its non-SBA loans it must do so for SBA Express. Early defaults are reviewed by SBA.legacy.sba.gov
• Changes of ownership follow Appendix 15, with an internal valuation allowed at a business purchase price of $350,000 or less and the Appendix 15 debt service coverage ratios applying in full.legacy.sba.gov
• An SBA Express loan may be refinanced by a new SBA Express loan before amortizing payments begin, either to restart the revolving period (with utilization justified in the credit memo) or to term out the balance over up to 10 years with no revolving period.legacy.sba.gov
• Commercial real estate securing an SBA Express loan needs a full appraisal only when related parties are involved or the lender concludes one is necessary; otherwise an evaluation consistent with the interagency guidelines is acceptable.legacy.sba.gov
• Lender must review and analyze the personal credit reports of every natural-person co-borrower and guarantor regardless of ownership percentage; owners of 20% or more must give unlimited full guaranties.legacy.sba.gov

• SBA Form 1919Borrower Information Form: applicant, owner, loan request and eligibility certifications; a separate form for each co-borrowerOpen
• SBA Form 2424Supplemental Loan Agreement for the SBA Express Program, executed by the lender to obtain SBA Express authorityOpen
• SBA Form 413Personal Financial Statement for owners of 20% or more and guarantors other than Supplemental Guarantors (lender's equivalent form accepted)Open
• IRS Form 4506-CIVES request for tax return transcripts used to verify the applicant's financial informationOpen
• IRS Form 8821Tax Information Authorization, the alternative to IVES for obtaining tax transcripts (lender must be the designee)Open
• SBA Form 148Unconditional Guarantee for owners of 20% or more (lender's equivalent form permitted for 7(a))Open
• SBA Form 159Fee Disclosure and Compensation Agreement, required when an agent is paid or packaging fees exceed $2,500Open
• SBA Form 722Equal Employment Opportunity poster that businesses receiving SBA financial assistance must displayOpen
• SBA Form 1502Monthly guaranty loan status and remittance report the lender files with SBA's fiscal and transfer agentOpen

• SOPSOP 50 10 8.1, Lender and Development Company Loan Programs (with Technical Policy Updates)Version 8.1Effective Oct 1, 2026legacy.sba.gov
• SOPSOP 50 10 document page (current and prior versions)legacy.sba.gov
• Rule13 CFR Part 120, Business Loansecfr.gov
• SOPSOP 50 56 1, Lender Participation RequirementsVersion 50 56 1Effective Aug 1, 2023legacy.sba.gov
• SOPSOP 50 57 4, 7(a) Loan Servicing and LiquidationVersion 50 57 4Effective Nov 1, 2025legacy.sba.gov
• Information noticeFY 2027 7(a) Program Fees (SBA Information Notice 5000-881797)Effective Oct 1, 2026legacy.sba.gov
• Rule7(a) Alternative Base Rate Options (91 FR 5805)Effective Mar 1, 2026federalregister.gov
• RuleMaximum Allowable 7(a) Fixed Interest Rates (87 FR 46883)Effective Aug 1, 2022federalregister.gov

• Nov 10, 2026Procedural notice

  Procedural Notice 5000-883564: equity flexibility for veteran business acquisitions and related SOP 50 10 8.1 revisions

  For changes of ownership where veterans will own at least 50% after the transaction, standby debt, seller debt on full standby and non-controlling minority equity may supply up to 100% of the required equity injection (normally capped at half) for loans that receive an SBA loan number from November 11, 2026 through September 30, 2027. The minimum injection itself is not reduced. The notice also limits refinancing of a lender's own 7(a) loan to non-delegated processing, requires review of personal credit reports for every natural-person co-borrower and guarantor regardless of ownership, and allows an evaluation instead of an appraisal for commercial real estate securing 7(a) Small and SBA Express loans unless related parties are involved or an appraisal is needed.

  What to do: For veteran acquisitions using this flexibility, record each owner's veteran status in the SBA loan system and identify every equity source by type, provider and amount in the credit memo. Route any refinance of your own 7(a) loan through non-delegated processing, and pull personal credit reports for all natural-person co-borrowers and guarantors.

  Effective Nov 11, 2026Read the source
• Sep 25, 2026Information notice

  SOP 50 10 8.1 issued with Technical Policy Updates (Information Notice 5000-882227)

  SBA replaced the SOP 50 10 8.1 text published in August with a version containing technical policy updates, effective for applications received on or after October 1, 2026. Changes include: trusts owning 20% or more in aggregate must each give an unlimited guaranty and the trustor must also guarantee; 7(a) Small and SBA Express may finance changes of ownership under Appendix 15 with an internal valuation allowed at a purchase price of $350,000 or less; working-capital true-ups are not seller rebates; special purpose property acquisitions may use a single loan up to 25 years; a buyer's existing QoE report may be used with a reliance letter or second review; mixed-purpose loans with 51% or more real estate may run up to 25 years; and the annual field examination for Working Capital CAPLines applies at $1,000,000 or more.

  What to do: Use SOP 50 10 8.1 with Technical Policy Updates for every application received on or after October 1, 2026, and SOP 50 10 8 for applications submitted through September 30, 2026. Until SBA updates its forms, collect the new certifications and information required by the SOP and keep them in the loan file.

  Effective Oct 1, 2026Read the source
• Sep 3, 2026Information notice

  FY 2027 7(a) fees (Information Notice 5000-881797)

  For 7(a) loans approved October 1, 2026 through September 30, 2027, the lender's annual service fee is 0.55% of the outstanding guaranteed portion. Upfront fees for maturities over 12 months are 2% of the guaranteed portion for loans of $150,000 or less, 3% for $150,001 to $700,000, and 3.5% up to $1,000,000 plus 3.75% above $1,000,000 for larger loans; short-term loans pay 0.25%. The upfront fee is 0% for loans of $700,000 or less to manufacturers (NAICS 31-33), listed food supply chain industries and businesses located in a rural area. SBA Express loans to veteran-owned businesses pay no upfront fee.

  What to do: Update pricing, fee disclosures and closing statements for FY 2027 approvals, check NAICS codes and rural location for the 0% upfront fee, document veteran eligibility in the file for SBA Express fee relief, and do not pass the annual service fee to the borrower.

  Effective Oct 1, 2026Read the source
• Aug 14, 2026Information notice

  SOP 50 10 8.1 announced (Information Notice 5000-880695)

  SBA announced SOP 50 10 8.1, which moves change-of-ownership lending into a new Appendix 15, adds flexibilities for SBA Express and same institution debt refinancing, and folds in the policy and procedural notices issued since SOP 50 10 8 (citizenship and residency, International Trade, 7(a) and 504 loan limit coordination, the prior loss waiver, MARC, the SBSS sunset and the alternative base rates).

  What to do: Train credit and closing staff on SOP 50 10 8.1, in particular Appendix 15 (changes of ownership), Appendix 14 (debt refinancing) and Appendices 16 to 20, which consolidate guaranty, maturity, interest rate, collateral and submission rules.

  Effective Oct 1, 2026Read the source
• May 28, 2026Policy notice

  Policy Notice 5000-879464: prior loss waiver for non-controlling minority owners

  SBA may waive the prior loss rule (13 CFR 120.110(q)) case by case when the only link to a prior loss on an SBA 7(a) or 504 loan is an owner who held less than 20% of the defaulted business, was not a guarantor or co-borrower on it, and had no control. The waiver does not cover losses on non-SBA federal loans, PPP or COVID EIDL, and delinquent federal nontax debt still makes the applicant ineligible.

  What to do: When CAIVRS or other checks show a prior SBA loss tied only to a non-controlling minority owner, request the waiver before approval and document the owner's equity share, guarantor status and lack of control.

  Effective Jun 1, 2026Read the source
• Feb 11, 2026Procedural notice

  Revised ownership, citizenship and residency requirements (Procedural Notice 5000-876626)

  From March 1, 2026, 100% of direct and indirect owners and all SBA-required guarantors must be U.S. citizens or U.S. nationals with their principal residence in the United States or its territories, and entity owners must be organized in the United States. Lawful permanent residents are now ineligible owners, the 5% foreign ownership exception is gone, a six-month lookback applies unless an ineligible person fully divests before the loan number is issued, and lenders must enter 100% of direct and indirect owners in the SBA loan system. Applications with LPR ownership that reached R1 status by 11:59 PM Eastern on February 28, 2026 were still processed.

  What to do: Verify citizenship and principal residence for every owner and required guarantor, attach the new applicant certifications to the application until SBA Form 1919 is updated, document U.S. national status with a birth certificate or passport, and certify in the SBA loan system that no owner or guarantor is an ineligible person.

  Effective Mar 1, 2026Read the source
• Feb 10, 2026Rule

  Federal Register notification: 7(a) Alternative Base Rate Options (91 FR 5805)

  SBA published in the Federal Register, under 13 CFR 120.214(c), the alternative base rate options (SOFR, 5-year and 10-year Treasury note rates) for variable-rate 7(a) loans, effective March 1, 2026, also available to 7(a) pilot programs unless expressly prohibited.

  What to do: Use only the base rates authorized by 13 CFR 120.214 and this notice for variable-rate 7(a) loans.

  Effective Mar 1, 2026Read the source
• Feb 6, 2026Procedural notice

  7(a) alternative base rate options (Procedural Notice 5000-875051)

  Variable-rate 7(a) loans may use SOFR, the 5-year Treasury note rate or the 10-year Treasury note rate as an alternative base rate, in addition to Prime and the SBA Optional Peg Rate. The all-in rate on an alternative base rate is capped at Prime plus the spread allowed for the loan size. Loans using an alternative base rate cannot be sold on the secondary market for now.

  What to do: If you offer SOFR or Treasury-indexed 7(a) loans, state the alternative base rate, publication source, spread, first adjustment date and adjustment frequency in the note, check the rate against the Prime-based cap at each adjustment, and keep these loans out of secondary market sales.

  Effective Mar 1, 2026Read the source

A lender must first be approved to make 7(a) loans (SBA Form 750 through its SBA district office). It then requests SBA Express authority from SBA's Office of Credit Risk Management at DelegatedAuthority@sba.gov, showing it meets the delegated authority criteria in 13 CFR 120.440, and on approval signs SBA Form 2424. The two applications can be made at the same time.

• SBA district offices (lender relations specialists)
• SBA lender resources and types of 7(a) loans