SBA programs
The three SBA options owners compare most, with every limit taken from the current SBA rulebook, SOP 50 10 8.1, effective October 1, 2026.
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Short answer: a standard 7(a) loan goes up to $5,000,000 for most business purposes. SBA Express is a faster 7(a) delivery method capped at $500,000 with a 50% SBA guaranty. A 504 loan finances fixed assets such as real estate and major equipment, with the SBA-backed debenture capped at $5,000,000 per business, or $5,500,000 per project for small manufacturers and eligible energy projects.
Published . Source: SBA SOP 50 10 8.1 (SBA Information Notice 5000-880695; applies to applications issued an SBA loan number on or after October 1, 2026). Facts verified October 15, 2026.
| Standard 7(a) | SBA Express | 504 | |
|---|---|---|---|
| Maximum | $5,000,000 (Section B, Ch. 1) | $500,000 aggregate (Section B, Ch. 2) | Debenture up to $5,000,000 per business; $5,500,000 per project for small manufacturers and eligible energy projects (Section C, Ch. 1) |
| SBA guaranty | 85% up to $150,000; 75% above (Appendix 16) | 50% (Appendix 16) | Debenture through a Certified Development Company (Section C, Ch. 1) |
| Typical uses | Working capital, equipment, real estate, refinancing, changes of ownership | Same 7(a) uses, including revolving lines of credit | Fixed assets: real estate, long-lived machinery and equipment |
| Maximum term | Working capital 10 yrs; equipment generally 10, up to 15 if useful life supports; real estate 25 (Appendix 17) | Lines of credit up to 10 yrs including term-out (Appendix 17) | 10, 20 or 25 years based on the asset (Section C, Ch. 1) |
| Who makes it | SBA 7(a) lenders | Lenders with SBA Express authority only | A third-party lender plus a Certified Development Company |
| Structure | One loan | One loan or line | Lender 50% or more, CDC up to 40%, borrower at least 10% |
Program overviews are also on sba.gov: 7(a) loans and 504 loans. The SBA’s total exposure to one borrower, including affiliates, is capped at $3,750,000 across programs (Appendix 16).
A standard 7(a) loan is the broadest SBA product. Under SOP 50 10 8.1, Section B, Chapter 1, the maximum for any one standard 7(a) loan is $5,000,000. Appendix 16 sets the guaranty at 85% for loans of $150,000 or less and 75% above that, with a maximum guaranty of $3,750,000. Appendix 17 limits terms by use: working capital, inventory and intangibles to 10 years, equipment generally to 10 years (up to 15 if the IRS useful life supports it), and real estate to 25 years. Loans of $350,000 or less are processed as 7(a) Small loans with their own procedures.
SBA Express is a 7(a) delivery method, not a separate program. Section B, Chapter 2 says SBA Express loans are $500,000 or less and may only be made by a lender with SBA Express authority, and the $500,000 cap is aggregate across the borrower’s outstanding SBA Express and certain related loans. The trade-off for the lighter process is a 50% SBA guaranty (Appendix 16), so lenders take more of the risk. SBA Express lines of credit may not exceed 10 years including any term-out period (Appendix 17).
The 504 program finances fixed assets. Section C, Chapter 1 describes three partners: a third-party lender providing 50% or more of the financing, a Certified Development Company providing up to 40% through a 504 debenture, and the borrower injecting at least 10%. The debenture is limited to $5,000,000 outstanding per business including affiliates, with $5,500,000 per project for small manufacturers (NAICS 31 to 33) and eligible energy projects. Maturities are 10, 20 or 25 years, with a maximum of 25 years for real estate and a minimum of 10 years for machinery and equipment.
A 504 loan does not fund working capital or inventory on its own; if that is the need, 7(a) or a non-SBA product is the comparison.
Merchant Fund Express publishes its business term loan at $10K–$250K, with the loan amount capped at 15% of annual revenue and terms of 12 to 18 months, and its business line of credit at $10K to $350K, from 1% per month with a 2.49% fee per draw. None of these are SBA loans. For what an SBA-sized loan costs each month, see business loan monthly payment examples.
The maximum for any one standard 7(a) loan is $5,000,000, per SBA SOP 50 10 8.1, Section B, Chapter 1.
SBA Express loans are $500,000 or less, with a 50% SBA guaranty, per SOP 50 10 8.1, Section B, Chapter 2 and Appendix 16.
The 504 debenture is limited to $5,000,000 per business including affiliates, or $5,500,000 per project for small manufacturers and eligible energy projects. The third-party lender loan is in addition.
No. The 504 program finances fixed assets such as real estate and long-lived equipment. Working capital is a 7(a) or non-SBA use.
Up to 10 years for working capital and inventory, generally 10 years for equipment (up to 15 if useful life supports it), and up to 25 years for real estate, per Appendix 17.
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