SBA Information Notice: Expiration of SBA Express Bridge Loan Pilot Program
Summary
SBA Information Notice, control no. 5000- 807424, effective March 31, 2021, addressed to SBA employees and 7(a) Lenders, advising that the SBA Express Bridge Loan Pilot Program expired on March 13, 2021 and was not renewed. It recounts that SBA announced the pilot in the Federal Register on October 16, 2017 (82 FR 47958), revised its requirements on May 7, 2018 (83 FR 19921), and on April 1, 2020 allowed pilot loans under the COVID-19 Emergency Declaration and extended the program through March 13, 2021 (85 FR 18107). The notice then explains what the expiration means for the regulation SBA had modified for the pilot.
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Full text
SBA Information Notice
TO: All SBA Employees and 7(a) Lenders CONTROL NO.: 5000- 807424
SUBJECT: Expiration of SBA Express Bridge EFFECTIVE: March 31, 2021
Loan Pilot Program
The purpose of this Notice is to advise SBA employees and 7(a) Lenders that the Express Bridge
Loan Pilot Program (Express Bridge Pilot) expired on March 13, 2021 and was not renewed.
On October 16, 2017, the U.S. Small Business Administration (SBA) published a notice in the
Federal Register announcing the Express Bridge Loan Pilot Program (82 FR 47958). In that
notice, 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 notice in the Federal Register to revise certain program requirements
(83 FR 19921). On April 1, 2020, SBA further revised the program requirements to allow
Express Bridge Pilot loans made under the COVID-19 Emergency Declaration and extended the
pilot program through March 13, 2021 (85 FR 18107).
In the October 16, 2017 Federal Register notice, SBA stated it will be using the following criteria
to evaluate the Express Bridge Pilot: (1) The measurable objectives to be achieved through the
Express Bridge Pilot, including the number of small business concerns served, the percentage of
Express Bridge Pilot loans made that were paid off or paid down using lower fixed rate disaster
loans versus those that are held to term, and the default rate on the Express Bridge Pilot loans
compared to regular SBA Express loans of similar size in the 7(a) portfolio; and (2) the costs and
standards of performance which, in order to be acceptable, must not impact the subsidy model
for the 7(a) Loan Program. However, few loans were made at the onset of the pilot and no loans
were made within the last 29 months. Because of the limited number of loans made, SBA was
unable to conduct a meaningful program evaluation.
Therefore, SBA has determined the Express Bridge Pilot did not provide a significant benefit to
small businesses and the pilot was not renewed. The elimination of the Express Bridge Loan
Pilot Program should have no impact on lenders or small businesses, as the program was
underutilized from the start.
PAGE 1 of 2 EXPIRES: 3/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
Questions
Questions concerning this notice should be directed to the lender relations specialist in the local
SBA Field Office.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 2 of 2 EXPIRES: 3/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
File and source
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- 2021-04_Information-Notice-5000-807424-Express-Bridge-Loan-Pilot-Expiration-508.pdf
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- Original
- www.sba.gov