SBA Express

Definition

The Express version of a 7(a): faster, less paperwork, capped at $500,000.

Why It Matters

Express trades size and guarantee for speed: the cap is $500,000 and the government guarantees half instead of three-quarters, so banks decide faster and lean on their own credit box harder. For a business acquisition it is usually the wrong door, because most deals need more money and the full guarantee is what makes goodwill lending work. Where it earns its place is beside the deal: a working-capital line or an equipment loan after closing, from a bank that already knows the file.

In numbers: A $350,000 working-capital line closes as an Express loan in days, not weeks; the bank keeps only a 50% guarantee, so it underwrites the deal harder than a 7(a) desk would.