SBA Express Loan Calculator

Thirty-six hours, and what the speed costs

Express is a 7(a) loan the lender approves under delegated authority, on its own forms, with an SBA answer inside thirty-six hours. You pay for that with a lower ceiling and half the guaranty — and above $350,000, with a higher rate cap as well. Below that the Express ceiling can be the lower of the two, which is not obvious and is worth checking before you assume speed costs money. This prices the same loan under both programs.

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Above $350,000 Express is more expensive. Below it, often cheaper — Express caps at base plus 4.50 above $50,000. Standard 7(a) caps at plus 6.00 to $250,000, plus 4.50 to $350,000, then plus 3.00. The programs cross twice.

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The ceiling is $500,000 — Against five million on a standard 7(a). Adequate for working capital and smaller equipment, short for an acquisition.

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The rate cap is higher above $50,000 — Express allows base plus 4.50 where standard 7(a) allows base plus 3.00 above $350,000. Same base rate, a point and a half of difference in the ceiling.

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The guaranty is 50 percent, not 75 or 85 — That is the lender's exposure on paper. In practice it reaches you as pricing, as collateral, or as a decline.

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No balloon is permitted — Express amortises. A structure that leaves a lump sum at maturity is not an Express loan, which is worth knowing before a lender proposes one.

— Prepared forName the businessOwner

Company

Trading as

CEO or principal

State of organization

Figures as of

Analysis conducted by

Prepared by

Firm

Working capital term loan

Ten years is the ceiling for working capital under 7(a), Express included.

$5,454

Monthly payment

10.75%

Rate, Express ceiling 11.25%

2.37

Coverage, lenders look for 1.25

Over 10 yearsExpressStandard 7(a)

Rate ceilingWhat each program allows at $400,00011.25%9.75%

Monthly payment at the ceiling$5,567$5,231

Interest at the ceiling$268,011$227,697

What the speed costsCeiling against ceiling, same term, same base$40,314—

At your quoted 10.75%Amount

Amount financed$400,000

Interest over 10 years$254,426

SBA guaranty fee, 0.00% of $200,000$0

Packaging and closing$2,500

Interest, first twelve months$41,861

First-year costInterest and fees. Principal repaid is not a cost.$44,361

Principal repaid in year oneCash out, but it is your own equity$23,582

Still cheaper than a standard 7(a) at its cap?No, by $26,729

Against the ceiling$400K

Rate against Express cap10.75%

Coverage against 1.252.37

What you are trading

At $400,000 the Express ceiling sits 1.50% above the standard 7(a) ceiling. Priced at both caps over 10 years that is $40,314 of extra interest for the faster answer. Worth it when a supplier, a lease or a purchase order will not wait. Not worth it when the only thing driving the timeline is impatience.

What this does not model

The comparison prices both programs at their ceilings, which is the honest worst case rather than a quote. Well-qualified borrowers are routinely priced below the cap, and a lender that wants the relationship will move. It also leaves out collateral requirements, the personal guarantee every twenty percent owner signs, prepayment terms, and the annual service fee. The guaranty fee is an input because the schedule changes by fiscal year and is zero for eligible veteran-owned businesses.

Thirty-six hours, and what the speed costs