The Small Business Administration partners with community lenders like Exchange Bank to extend credit that would not fit conventional box lending. This reference outlines the 7(a), 504, and Express programs in plain language, with the documentation expectations and local underwriting context that shape each file.
The Small Business Administration does not lend money directly in the 7(a) and 504 programs. Instead, the agency guarantees a portion of the loan a bank makes, which lets a bank like Exchange Bank extend credit on terms that would be tough to justify on a pure conventional basis. The borrower gets longer amortization, lower down payments, and weight given to projections rather than strict historical cash flow coverage. The bank gets a partial federal guarantee that softens the downside if the loan runs into trouble.
Because the SBA delegates much of the day-to-day underwriting to approved lenders, the conversation a borrower has about an SBA file at a community bank feels similar to a conventional one. The underwriter looks at the three years of tax returns, the owner's management experience, the collateral, and the proposed use of funds. The SBA's rules layer on top of that review, adding requirements around eligibility, size standards, and program-specific structures. Overview and program definitions are published at the SBA funding programs portal, and size standards live at the SBA size standards tool.
Most Exchange Bank SBA conversations begin with the 7(a) program because it is the catch-all. A working-capital request, a partner buyout, a debt refinance, or an owner-occupied real estate purchase can all sit inside 7(a). The 504 program is narrower and aimed at long-lived fixed assets: an owner-occupied building, heavy equipment with a useful life over ten years, or a ground-up construction project that the owner intends to occupy. SBA Express is a faster sleeve of 7(a) used for smaller lines of credit and term loans where speed matters more than stretching the guarantee.
Exchange Bank keeps SBA underwriting local. The owner meets a banker who lives in the same region, and the credit analyst reviewing the file can walk next door to ask a question. That changes the tenor of the file: a marginal metric the national SBA shop might kill often survives when a local banker can verify the story in person. For context on community-bank concentration in SBA lending, see the Federal Deposit Insurance Corporation's research at fdic.gov community banking.
| SBA program | Typical use | Max amount framing | Typical term |
|---|---|---|---|
| 7(a) | Working capital, equipment, refinance, partner buyout, owner-occupied real estate | Up to $5 million | 10 years on equipment, up to 25 on real estate |
| 504 | Owner-occupied commercial real estate, heavy machinery, ground-up construction | Project size typically under $15 million | 10, 20, or 25 years depending on asset |
| SBA Express | Small working-capital loans and revolving lines of credit | Up to $500,000 | 7 years on a revolver, up to 10 on term |
| 7(a) Small loan | Smaller conventional requests that still benefit from a partial guarantee | Up to $350,000 | Aligned to use, typically 7 to 10 years |
The single biggest determinant of SBA turnaround time is the completeness of the file on day one. Exchange Bank publishes a document checklist at application, and owners who return it fully populated usually cut two to three weeks off the timeline. The list is not mysterious — it matches what any conventional commercial lender would ask for, plus an SBA-specific set of forms that capture eligibility attestations and affiliate information.
Beyond documents, the narrative matters. A one-page memo explaining what the business does, where it is headed, and why the requested structure solves a specific problem gives the underwriter context that numbers alone cannot supply. SBA files are judged partly on character and management capacity, and that is exactly the dimension that a written narrative illuminates.
SBA borrowers normally carry a full banking relationship. Deposit accounts sit under business checking and business savings. Treasury services attach through treasury management and merchant services. Real estate needs flow into commercial real estate lending, and payroll-adjacent tooling ties back to online banking, the mobile banking app, wire transfers, and bill pay. The owner's personal finances live on personal checking, personal savings, money market accounts, home mortgages, and auto loans. Background and access pages include about Exchange Bank, leadership, the security center, the Exchange Bank login guide, and the help resources hub.
"The SBA 7(a) we closed at Exchange Bank covered a partner buyout and the build-out for a second operatory. Having a local banker who picked up the phone made the sixty-day timeline manageable."
Susannah Kuznetsov Dentist, Kuznetsov Family Dental · Glen Ellen, CA
The SBA 7(a) program is the most flexible product in the Small Business Administration catalog. Owners use 7(a) proceeds for working capital, equipment, debt refinance, inventory, leasehold improvements, and in some cases the purchase of owner-occupied real estate. Exchange Bank underwrites the loan locally and partners with the SBA for the guarantee.
The SBA 504 program focuses on owner-occupied commercial real estate and heavy equipment. The structure pairs a bank first lien with a Certified Development Company second lien backed by the SBA. Borrowers typically bring ten percent down, the bank funds fifty percent, and the CDC covers the remaining forty percent.
Plan to provide three years of business tax returns, three years of owner personal tax returns, year-to-date financials, a debt schedule, a business plan or projection for new ventures, and a personal financial statement for every guarantor holding twenty percent or more of the business.
Yes. SBA Express is a streamlined sub-product of 7(a) with faster turnaround and a lower guarantee percentage. Exchange Bank uses Express for smaller working-capital requests and lines of credit where the paperwork burden of a full 7(a) application would outweigh the loan size.
From complete application to funding, a 7(a) loan typically runs thirty to sixty days. SBA Express can close in under three weeks. SBA 504 runs longer because it involves appraisal, environmental review, and coordination between the bank, the Certified Development Company, and the SBA servicing center.