What is an SBA Express Loan?

Posted: August 25, 2022 | By: LendVer Staff –

In a prior article we discussed what SBA financing is generally, but today we’ll be talking about a lesser known SBA program called SBA Express financing. The SBA Express program is very similar to SBA 7(a) financing and is technically part of that program, but there are a few major differences that separate the two.


Just as the name implies, the SBA Express program can be much faster than the standard SBA 7(a) program. Depending on the use of proceeds being sought under the SBA 7(a) program, it can take as long as 30 to 120+ days to receive funding. There are some lenders and finance companies that can close SBA 7(a) loans up to $350K in as little as a few weeks, but they are the exception. Because the Small Business Administration (SBA) grants more underwriting flexibility to SBA Preferred Lenders under the SBA Express program, funding can occur in as quickly as a few days!


The best thing about the SBA Express program is that the documentation can be more limited, and many of the items required by SBA lenders for the standard SBA 7(a) program may not be required for the SBA Express program. For example, South End Capital a division of Stearns Bank N.A., an SBA Preferred lender, in most cases does not even require that any business financials or tax returns be underwritten for its SBA Express program. South End Capital’s SBA Express program is for business working capital and equipment loans up to $25,000, can deliver funding in less than a week, and only four standard SBA forms are required along with a few select third-party reports.


SBA Express loans offer the same great terms as regular SBA 7(a) financing with the added benefit of requiring a lot less documentation, and closing in days versus months:

  • 10-Year Fully Amortizing Loans
  • No Prepayment Penalty
  • WSJ Prime + 4.5% to 6.5% Rates
  • Quarterly Adjustable Financing
  • No Collateral Required (in many cases)
  • Funding is Possible in Days

Common uses of SBA Express financing are for business working capital, advertising, payroll, equipment, or other business expansion needs. SBA Express financing is authorized by the SBA up to $500,000, but many lenders, like South End Capital, focus on smaller loans because it enables underwriting to occur without financials or collateral in many cases.


Most SBA eligible businesses may be able to obtain SBA Express financing, but since the SBA only offers a 50% guarantee to the funding lender in the event the loan defaults—lenders usually prefer more conservative parameters when evaluating businesses for SBA Express financing:

  • 725+ Guarantor Credit
  • 2+ Years’ Time in Business
  • Satisfactory Payment History
  • No Prior Bankruptcies or Foreclosures


The SBA Express program can be a great option for qualified businesses to obtain working capital, equipment, or expansion funding at affordable terms and in an expedited fashion. Many business owners may believe that SBA programs are too cumbersome to meet their capital needs and will turn to more expensive alternative business loan products to quickly obtain funding. However, SBA Express financing can be quick and painless, when procured through an experienced SBA lender like South End Capital.

Interested in accessing fast and affordable SBA Express financing? Contact our recommended best commercial real estate & business lender South End Capital.