Express Bridge Loans
The purpose of the SBA Express Bridge Loans help enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the Emergency Injury Disaster Loan
SBA Express Loan
The purpose of SBA Express Loans standard fall under the federal government’s SBA Loan Guarantee Program. Though similar to the SBA 7(a) loan, which offers up to $5 million and has a guarantee of up to 85% of the loan amount, the “express” loan sets itself apart by being approved or denied within 36 hours.
If approved, funds become available to the business owner within 90 days. This is a far cry from the notoriously grueling process surrounding the SBA 7(a) loan, which requires lengthy application paperwork and even longer lead times for approvals or denials.
ACCEPTABLE USES FOR SBA EXPRESS LOAN PROCEEDS
- Providing long-term working capital
- Accounts payable, purchasing inventory, and other operational expenses
- Providing short-term working capital
- Seasonal financing, contract performance, construction financing, and/or export
- Purchasing real estate
- Purchasing equipment, furniture, machinery, supplies, and materials
- Covering construction and/or renovation costs
- Establishing or acquiring a new business, or expanding an existing business
- Refinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)
WHAT LOAN PROCEEDS CANNOT BE USED FOR
- Reimbursing an owner for any previous personal investments toward the business
- Repaying any delinquent withholding taxes
- Affecting any change or change of business ownership that will not have a positive effect on the business
- Any purpose did not deem as “sound business purpose,” as determined by the SBA
Dwayne J. Briscoe