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SBAExpress Loan
Program Expanded The Small
Business Administration has just announced changes in the SBAExpress pilot
loan program that will significantly expand the
number of lenders participating in the program and increase access to
capital for small businesses. The
modifications will allow an estimated 2,400 lenders already
delivering other SBA loan products to participate in the SBAExpress
program. Many of these are small and rural lenders that serve small
businesses in remote areas. As an additional measure, the SBA will
open up the program to other lenders across the country experienced in
small business lending but that have not participated with SBA. To
meet the needs of new and startup small businesses requiring smaller loan
products, SBA will offer certain incentives to lenders to increase
the availability of smaller loans, especially loans of $50,000 or less.
At the same time, SBA will raise the maximum
limit of an SBAExpress loan to $250,000, from $150,000, to allow more
small business borrowers to take advantage of the program's expedited loan
process. The
program, which is aimed at simplifying access to SBA loan products, allows
lenders to use their own forms and processes to approve loans guaranteed
by SBA. Minimal paperwork is required for the SBA, and the agency
generally provides an immediate response
on most SBAExpress applications. SBA encourages the use of
technology to expedite the loan process. "The program is innovative in its approach to providing delivery mechanisms for SBA-guaranteed loans to suit the specific needs of a diverse array of small businesses," SBA Administrator Hector V. Barreto said. "The agency has looked at new ways to work with its lending partners in order to expand service to small business borrowers and provide greater capital access opportunities. "These enhancements will expand the program's reach to more small businesses and represent a major step in the agency's continuing efforts to increase efficiency and better meet the needs of both its lending partners and small business owners." For additional information about SBA lending programs visit the SBA web site at http://www.sba.gov, or contact local SBA, SCORE, or SBDC offices.
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