SBA Express Loan
While not traditionally designed as a disaster loan, the Small Business Administration's (SBA) Express Loan is being looked at as another tool to help small- to mid-sized businesses during the COVID-19 (Coronavirus) crisis. As a result of the CARES Act, the turnaround time and lending limit under this program has increased. Additionally, The CARES Act:
- Increases the maximum loan for an SBA Express loan from $350,000 to $1 million through Dec. 31, 2020.
- Establishes that entrepreneurs can be granted up to $350,000 of capital in the form of either a term loan or line of credit.
- States that, once received, the capital may be used for various business purposes.
- Determined that the interest rate for this type of loan can be negotiated, but cannot exceed the SBA maximum.
- Added an Express Bridge Loan, but capped the loan limit at $25,000.
View The Webinar: How To Claim SBA Disaster & CARES Act Loans
Due to the nature of the COVID-19 crisis, this information may be subject to revision as we are able to get more guidance from banks, the SBA and the U.S. Department of Treasury. You are advised to discuss your specific situation with your Rea & Associates advisor, legal counsel, and your lender before making any decisions.