WASHINGTON—The Small Business Administration (SBA) has released an update to its express bridge loan (EBL) pilot program, extending the program to March 13, 2021 from its original expiration date of Sept. 30, 2020.
The update also expands eligibility to include small businesses that may be adversely impacted by the coronavirus.
The update applies to EBLs approved on or after April 1, 2020. Eligible borrowers include small businesses that are eligible under the 7(a) express program and categorized as a “for-profit” organization; credit unions are unable to apply for the EBL pilot program loans, NAFCU said.
The EBL pilot program authorizes SBA express lenders to provide expedited SBA-guaranteed bridge loans on an emergency basis for up to $25,000 to businesses as they apply and wait for long-term financing. However, the number of loans made under the EBL pilot program cannot exceed 10% of the total number of 7(a) loans in any fiscal year.
For more information, to the guidance issued by the SBA to address coronavirus issues.