SBA increases disaster recovery lending for small businesses
by The Press and Standard | June 26, 2018 4:42 pm
The U.S. Small Business Administration prides itself in the efforts it takes to help small business owners recover from disasters. The SBA 7(a) Loan Program is aiding in that effort by offering the Express Bridge Loan Pilot Program. This Pilot Program was authorized on October 16, 2017 and is available through September 30, 2020.
With hurricane season upon us, SBA wants to make sure SBA Lenders and small businesses are aware that this Pilot Program is available for SBA Express Lenders to provide immediate loans up to $25,000 with a 50% SBA guaranty for small businesses located in the counties affected by a presidentially-declared disaster. An important part of recovery is the availability of immediate cash to assist the small business with rebuilding and continuing or restarting its operations while awaiting long-term disaster financing.
The EBL Pilot Program permits a very streamlined delivery available through existing SBA Express Lenders. Small business owners are not required to apply for an SBA disaster loan in order to qualify for an EBL loan and are advised to contact their bank as soon as possible to determine eligibility.
Lenders must be authorized as SBA Express Lenders at the time of the presidential disaster declaration in order to offer this assistance. SBA 7(a) lenders that do not already participate in the SBA Express program are encouraged to contact their local SBA District Office to find out how to participate in order to best assist their local small business owners in the unfortunate circumstance of a disaster.
A Program Guide outlining the full procedures applicable to the Express Bridge Loan Pilot Program is available on the SBA’s website. For further assistance, please contact Robert Carpenter, Acting 7(a) Policy & Program Chief, or your local SBA District Office.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.