Small Business Administration Express Bridge Loans Summary

Written by Eric Beepat

On April 8, 2020

SBA Express Bridge Loans: Summary

I’ve shared some info on the CARES Act already, but there are other programs, such as the Express Bridge Loan Pilot Program (EBL), that offer small businesses assistance.  The Small Business Administration (SBA) expanded its EBL loan offerings to aid businesses affected by the coronavirus pandemic. The expansions to the express bride loans apply to small businesses in any American state, territory and the District of Columbia that were affected by COVID-19. Here are some more details of the EBL loan program to see if your small business qualifies.

The SBA mandates that the business must have been operational when the virus was declared an emergency and must meet all other SBA Loan Requirements, which are:

  • Operate for profit
  • Do business in the U.S. or its territories
  • Have reasonable owner equity to invest
  • Use alternative financial resources including personal assets before seeking financial assistance
  • There are a few other stipulations, but those are the major ones.

In addition, EBL loan lenders must document that EBL applicants had an operating business as of March 13, 2020 and that the applicant was adversely affected by COVID-19, according to SBA’s guidelines. SBA deems any small business eligible if it meets either of the following conditions:

For Presidential Disaster Declarations, small businesses that were located, as of the date of the applicable disaster, in Primary Counties that were declared disaster areas under the Presidential Disaster Declaration or in any Contiguous Counties; or

For the COVID-19 Emergency Declaration, small businesses located in any state, territory and the District of Columbia that have been adversely impacted by the COVID19 emergency

You can apply for an express bridge loan by contacting your local SBA District Office.  

What Lenders are authorized to make an EBL Loan?

  • EBL loans can only be made by SBA Express Lenders that had a valid SBA “Supplemental Loan Guaranty Agreement SBA Express Program,” in effect as of the date of the applicable disaster. (For the COVID-19 Emergency Declaration, the date of the applicable disaster is March 13, 2020.)
  • SBA Express Lenders may only make EBL loans to eligible small businesses with which the Lender had an existing banking relationship on or before the date of the applicable disaster.

You can apply for an express bridge loan by contacting your local SBA Office.  Check for your local office at the link below.  Also, check with your current lenders and see if they have the program.

https://www.sba.gov/local-assistance/find/?type=SBA%20District%20Office&pageNumber=1

In Closing

If the Corona Virus Pandemic impacted the normal operations of your business, you may qualify for assistance. The EBL program expanded its provisions to provide relief to small for-profit companies experiencing financial loss. EBL loans may be useful to small businesses that operate in any U.S. states, territories or the District of Columbia, but you’ll want to pay close attention to the program’s eligibility requirements and check with your lenders. All applicants must prove that their business operated as of March 13, 2020 and that suffered loss due to the corona-virus pandemic.

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Additional information links:

Express Bridge Loan Pilot Program PROGRAM GUIDE

SBA Express Bridge Loans

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