SBA Express Bridge Loans

SBA Express Bridge Loans

SBA Express Bridge Loans are a type of loan offered by the Small Business Administration (SBA) to provide immediate financial assistance to small businesses that have been impacted by a disaster, such as a natural disaster or the COVID-19 pandemic. The program is designed to provide a bridge loan to small businesses that have been affected by a disaster, but have a long-term, SBA-approved loan in the pipeline.

The SBA Express Bridge Loan program allows small businesses to quickly access up to $25,000 in funds, with a repayment term of up to 7 years. The loan is intended to provide working capital, such as paying employees, maintaining inventory and paying bills, while the business waits for a long-term loan to be approved.

To qualify for an SBA Express Bridge Loan, the business must be located in a declared disaster area and have a long-term, SBA-approved loan in the pipeline. They also need to demonstrate that they have been in operation for at least one year before the disaster and that they were financially stable before the disaster.

The application process for an SBA Express Bridge Loan can be completed online and requires the submission of financial statements and tax returns, as well as a description of the disaster’s impact on the business. The SBA will review the application and determine the loan amount and terms.

It’s important to note that the SBA Express Bridge Loan is a temporary loan intended to provide immediate assistance while a business applies for a long-term loan. Businesses may apply for both programs but can only use the proceeds from each loan for specific expenses.