SBA vs revenue-based
We do not offer SBA loans. We do get asked how they compare to revenue-based funding every day, so here is an honest comparison of when each one is the better choice.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
SBA loans are made by banks, credit unions and other approved lenders, with a partial guarantee from the U.S. Small Business Administration. Merchant Fund Express works on revenue-based funding, lines of credit, term loans and equipment financing. If an SBA loan fits you better, this page should help you see that.
| Program | Typical use | Maximum |
|---|---|---|
| SBA 7(a) | General purpose: working capital, equipment, refinancing, buying a business | Up to $5 million |
| SBA 504 | Long-term fixed assets such as real estate and major equipment, through a lender and a Certified Development Company | Larger projects; the SBA portion has its own limits |
| SBA Express | A faster 7(a) variant with a reduced guarantee | Up to $500,000 |
| SBA microloan | Small loans through nonprofit intermediaries | Up to $50,000 |
Program limits and rules change. Check sba.gov for current terms before applying.
| SBA loan | Revenue-based funding | |
|---|---|---|
| Cost | Usually much lower | Higher, a fixed payback |
| Speed | Weeks to months | Same-day decision; funding in as little as 24 hours for qualified files |
| Paperwork | Tax returns, financials, business plan, often collateral | About three months of bank statements; no tax returns for a typical first review |
| Credit | Typically strong credit | 500+ considered |
| Time in business | Often two years or more | Six months on the revenue-based tier |
| Amounts | Up to $5 million on 7(a) | $25,000 to $5,000,000 |
If that package is ready and the need can wait, apply for the SBA loan first.
A restaurant needs $60,000 to replace kitchen equipment that failed on Friday. An SBA loan could cost far less in total but take weeks to close, and every day closed costs sales. A revenue-based offer funds in days at a higher fixed cost.
| Item | Amount |
|---|---|
| Revenue lost per closed day | $3,000 |
| Days closed waiting six weeks | About 30 trading days, or $90,000 in lost sales |
| Days closed waiting three days | 3 trading days, or $9,000 |
In this case speed wins. For a planned expansion with no clock running, the SBA loan would.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
See MCA vs SBA loan, the SBA loans guide and options after an SBA decline. When you need speed, check your fit or apply.
No. We offer revenue-based funding, lines of credit, term loans and equipment financing.
Up to $5 million. SBA Express loans go up to $500,000. Check sba.gov for current limits.
Usually yes. You are paying for speed and lighter paperwork.
Sometimes. Disclose the pending SBA loan, because the SBA lender will see any new obligation.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
