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
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesThe 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.)
Related Questions
What is the Express Bridge Loan Pilot Program?
The Express Bridge Loan Pilot Program is a loan program offered by the Small Business Administration (SBA) that allows banks to provide short-term bridge loans to small businesses affected by natural disasters. These loans are offered on 7-year terms and can be repaid with the proceeds of larger disaster loans that the borrower may receive later. This program is the first time that the SBA has opened up disaster lending to banks, which should hopefully improve the speed of the entire process.
How does the Express Bridge Loan Pilot Program work?
The Express Bridge Loan Pilot Program is a program that allows banks to provide short-term bridge loans to small businesses affected by natural disasters. The program is designed to provide quick access to capital to help businesses recover from disasters. The loans are offered on 7-year terms and can be repaid with the proceeds of larger disaster loans that the borrower may receive later. The program is the first time that the Small Business Administration (SBA) has opened up disaster lending to banks, which should hopefully improve the speed of the entire process.
What are the eligibility requirements for the Express Bridge Loan Pilot Program?
The eligibility requirements for the Express Bridge Loan Pilot Program are as follows:
- The business must be located in a declared disaster area.
- The business must have been in operation on the date of the declared disaster.
- The business must have suffered an economic injury as a result of the declared disaster.
- The business must be able to demonstrate the ability to repay the loan.
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What are the benefits of the Express Bridge Loan Pilot Program?
The Express Bridge Loan Pilot Program offers several benefits to borrowers. First, it allows borrowers to access funds quickly, as the loan is provided by a bank rather than the Small Business Administration. Second, the loan is offered on 7-year terms, which is longer than most other types of SBA loans. Finally, 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).