Daily Chamber Update, April 2

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Provided by Prince William Chamber of Commerce

For your information:

This Week’s Webinars | COVID-19 Projections

Zoom Meeting with Senator Tim Kaine

Join other Chambers of Commerce members from around Virginia on Monday, April 6 at 1:00 p.m. U.S. Senator Tim Kaine will be hosting a Zoom meeting. There are a max of 500 people allowed in the meeting, so reserve your spot on the call today.

U.S. Small Business Administration Express Bridge Loans (EBL)

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. It 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. It is for 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).

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.).

In addition to the forms below, banks will also need to submit the most recently filed tax returns for the business and all owners of the business or a justification if not available. Sole proprietors are required to complete the 5C loan application form. All other businesses should fill out the form 5 business loan application.

Notes on filling out the forms:

  • On all forms, “Damaged Property” simply refers to your primary location for the operations of the business.
  • On Form 5, skip box 15, this only applies to property damage loans.
  • There is no specific location to input a requested loan amount. The loan amount is determined by the supporting documents and any other relevant financial information provided that substantiates the economic injury.
  • All owners with 20% or greater ownership in the business must be included in the application.
  • More information here.

 

 

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