What is the Express Bridge Loan Pilot Program?
The Express Bridge Loan Pilot Program is a new SBA loan program which allows existing SBA Express lenders to offer expedited disaster loans of up to $25,000 to small businesses. The program, which officially began in Oct. 2017, permits lenders to offer these loans up to 6 months after a federally declared disaster.
SBA Express Bridge Loans vs. SBA Disaster Loans
Unlike SBA Express Bridge loans (and most other types off SBA loans), traditional SBA disaster loans are provided directly by the Small Business Administration to the borrower. In the past, this has lead to many borrowers complaining about long wait times after natural disasters, such as Hurricane Katrina. The SBA Express Bridge loan program represents the first time that the SBA has opened up disaster lending to banks, which should hopefully improve the speed of the entire process.
What Are The Terms of SBA Express Bridge Loans?
SBA Express Bridge Loans are currently being offered to borrowers on 7-year terms. Plus, borrowers are allowed to repay their Express Bridge loans with the proceeds of larger disaster loans that they may receive later (such as traditional SBA disaster loans, which are offered in amounts of up to $2 million.)