Express Bridge Loan Pilot Program; Modification of Eligibility and Loan Approval Deadline and Extension of Pilot Program
| Published date | 01 April 2020 |
| Citation | 85 FR 18107 |
| Record Number | 2020-06356 |
| Section | Rules and Regulations |
| Court | Small Business Administration |
Federal Register, Volume 85 Issue 63 (Wednesday, April 1, 2020)
[Federal Register Volume 85, Number 63 (Wednesday, April 1, 2020)]
[Rules and Regulations]
[Pages 18107-18108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06356]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
Express Bridge Loan Pilot Program; Modification of Eligibility
and Loan Approval Deadline and Extension of Pilot Program
AGENCY: U.S. Small Business Administration.
ACTION: Notification of change to Express Bridge Loan Pilot Program and
extension of pilot program.
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SUMMARY: On October 16, 2017, the U.S. Small Business Administration
(SBA) published a document announcing the Express Bridge Loan Pilot
Program (Express Bridge Pilot). In that document, SBA provided an
overview of the Express Bridge Pilot and modified an Agency regulation
relating to loan underwriting for loans made under the Express Bridge
Pilot. On May 7, 2018, SBA published a document to revise certain
program requirements. SBA continues to refine and improve the design of
the Express Bridge Pilot and is issuing this document to expand program
eligibility to include small businesses nationwide adversely impacted
under the Coronavirus Disease (COVID-19) Emergency Declaration (COVID-
19 Emergency Declaration) issued by President Trump on March 13, 2020.
Further, SBA is revising program requirements to allow Express Bridge
Pilot loans made under the COVID-19 Emergency Declaration to be
approved through March 13, 2021. The modification of eligibility
criteria and program requirements will allow small businesses adversely
impacted by the COVID-19 emergency to qualify for loans through the
Express Bridge Pilot. Finally, SBA is extending the term of the Express
Bridge Pilot from September 30, 2020 to March 13, 2021, to assist small
businesses that may experience delayed effects resulting from the
COVID-19 emergency to benefit from the Express Bridge Pilot and to
allow SBA to continue its evaluation of the program.
DATES: The revised program requirements described in this document
apply to all Express Bridge Pilot loans approved on or after April 1,
2020, and the Express Bridge Pilot will remain available through March
13, 2021.
FOR FURTHER INFORMATION CONTACT: Dianna Seaborn, Director, Office of
Financial Assistance, U.S. Small Business Administration, 409 Third
Street SW, Washington, DC 20416; Telephone (202) 205-3645; email
address: [email protected].
SUPPLEMENTARY INFORMATION: On October 16, 2017, SBA published a
document announcing the Express Bridge Pilot. (82 FR 47958) The Express
Bridge Pilot is designed to supplement the Agency's disaster response
capabilities and authorizes the Agency's 7(a) Lenders with SBA Express
lending authority to deliver expedited SBA-guaranteed financing on an
emergency basis for disaster-related purposes to small businesses
located in communities impacted by a Presidentially-declared disaster,
while the businesses apply for and await long-term financing (including
through SBA's direct disaster loan program, if eligible). On May 7,
2018, SBA published a document to revise certain Express Bridge Pilot
requirements. (83 FR 19921) The Express Bridge Pilot applies the
policies and procedures in place for the Agency's SBA Express program,
except as outlined in the Federal Register documents published on
October 16, 2017, and May 7, 2018.
SBA continues to refine and improve the design of the Express
Bridge Pilot and, therefore, is issuing this document to expand 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. Because the COVID-19 Emergency
Declaration covers all states, territories, and the District of
Columbia, eligible small businesses under the Express Bridge Pilot will
now include small businesses located in any state, territory and the
District of Columbia that have been adversely impacted by the COVID-19
emergency. (Previously, those small businesses would not be eligible
for Express Bridge Pilot loans because the program has been limited to
eligible small businesses located in Primary Counties that have been
Presidentially-declared as major disaster areas, plus any Contiguous
Counties.)
Further, SBA is revising program requirements to allow Express
Bridge Pilot loans made under the COVID-19 Emergency Declaration to be
approved
[[Page 18108]]
through March 13, 2021. This is a revision to the current policy that
states Express Bridge Pilot loans can only be made up to six months
after the date of the applicable Presidential disaster declaration.
This revision will allow small businesses that experience delayed
impacts resulting from the COVID-19 emergency to benefit from the pilot
program.
Finally, SBA is extending the term of the Express Bridge Pilot. The
Express Bridge Pilot is set to expire September 30, 2020. With this
Notice, SBA is extending the pilot program through March 13, 2021. This
extension will provide time for small businesses that may experience
delayed effects resulting from the COVID-19 emergency to benefit from
the Express Bridge Pilot and to allow SBA to continue its evaluation of
the program in accordance with the criteria set forth in the October
16, 2017 Federal Register notice.
All other SBA terms and conditions and regulatory waivers related
to the Express Bridge Pilot remain unchanged, including that loans made
under the Express Bridge Pilot may be eligible to be repaid with the
proceeds of an SBA direct disaster loan, including loans made under the
Economic Injury Disaster Loan (EIDL) Program. All references to
disasters in the Express Bridge Pilot program requirements will include
the COVID-19 emergency.
SBA has provided more detailed guidance in the form of a program
guide, which has been updated to conform to this Notice and is
available on SBA's website, https://www.sba.gov/document/support--express-bridge-loan-pilot-program-guide. SBA will also provide
additional guidance, if needed, through SBA notices, which also will be
published on SBA's website, http://www.sba.gov.
Authority: 15 U.S.C. 636(a)(25); 13 CFR 120.3.
Dated: March 19, 2020.
Jovita Carranza,
Administrator.
[FR Doc. 2020-06356 Filed 3-30-20; 8:45 am]
BILLING CODE P
