Dateline: 07/31/02

Small business owners will enjoy significantly increased access to capital, thanks to changes in the SBAExpress pilot loan program announced recently by the U.S. Small Business Administration.

Modifications to the popular new loan program will expand by over 2,400 the number of lenders nationwide already delivering other SBA loan products to make and administer SBAExpress loans. Many of these new lenders are small and rural lenders serving small businesses in remote areas. In addition, SBA will open up the SBAExpress loan program to other lenders in all parts of the nation who, though experienced in small business lending, have not before participated in SBA loan programs.

"The new and improved SBAExpress program exemplifies SBA’s commitment to innovation, simplification and dedication in responding to its customers and aligning its products closer to the needs of small business," SBA Administrator Hector V. Barreto said.

"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."

Administrator Barreto emphasized: "The program is about simplifying access to our loan products."

About SBAEpress Loans
Ideal for very small businesses, SBAExpress loans are now available in amounts up to $250,000 (just increased from $150,000) and can be made with a guaranteed 36 hour maximum turnaround. In addition, lenders can use their own, non-SBA loan forms and processes to approve SBAExpress loans guaranteed by the SBA. Lenders can process applications online. 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.

More Good News for New and Startup Businesses
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 is raising 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.

SBA Reminder: The U.S. Small Business Administration has extended to September 30, 2002, the nationwide filing deadline for small businesses affected by the Sept. 11 attacks to apply for Economic Injury Disaster Loans (EIDLs). [More Information -- EIDL Loan Application]