Effective immediately the Small Business Administration (SBA) has announced a new Express Bridge Loan for small businesses. Please see all pertinent information below:
In response to the COVID-19 National Emergency, the SBA Express Bridge Loan (EBL) Pilot Program has been modified and the term extended. The EBL Pilot Program is designed to supplement the Agency’s direct disaster loan capabilities and authorizes SBA Express Lenders to provide expedited SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes to small businesses located in communities affected by Presidentially-declared disasters while those small businesses apply for and await long-term financing (including through SBA’s direct Economic Injury Disaster Loan Program, if eligible).
2 major points to note:
- Only existing SBA Express Lenders may utilize this loan
- Borrowers must have an existing bank relationship with that lender
The general eligibility requirements for the EBL are as follows:
- For small businesses with an existing banking relationship with SBA Express lenders as of the date of the disaster.
- Effective March 25, 2020, (announcement by publication of a notice in the Federal Register will follow), SBA expanded program eligibility to include small businesses nationwide adversely impacted under the Coronavirus Disease (COVID-19) Emergency Declaration issued by President Trump on March 13, 2020 (“COVID-19 Emergency Declaration”).
- EBL loans can only be made by SBA Express Lenders that had a valid Supplemental Loan Guaranty Agreement SBA Express Program in effect as of the date of the applicable disaster;
- EBL loans can only be made up to six months after the date of an applicable Presidential Disaster Declaration, however for the COVID-19 Emergency Declaration, EBL loans can be approved through March 13, 2021.
- The Lender must have an existing banking relationship with the EBL applicant as of the date of the applicable disaster in order to help mitigate the risks associated with the streamlined underwriting process under the EBL Pilot Program.
- The small business must have been operational when the declared disaster commenced and must meet all other 7(a) loan eligibility requirements (credit elsewhere, size, etc.)
Below is the list of SBA Express Lenders
Adirondack Trust Company
Ballston Spa National Bank
Cayuga Lake National Bank
Chemung Canal Trust Co.
Corning Federal Credit Union
Elmira Savings Bank, FSB
Empower Federal Credit Union
First Heritage Federal Credit Union
First National Bank of Groton
First National Bank of Scotia
Glens Falls National Bank & Trust Co.
Maple City Savings Bank, FSB
NBT Bank. N.A.
New York Business Development Corp.
Saratoga National Bank & Trust Company
Steuben Trust Company
Tioga State Bank
Tompkins Trust Company
Trustco Bank, N.A.
Watertown Savings Bank
For more information, please reach out to one of these participating banks