[Federal Register Volume 85, Number 63 (Wednesday, April 1, 2020)]
[Rules and Regulations]
[Pages 18107-18108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06356]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 120


Express Bridge Loan Pilot Program; Modification of Eligibility 
and Loan Approval Deadline and Extension of Pilot Program

AGENCY: U.S. Small Business Administration.

ACTION: Notification of change to Express Bridge Loan Pilot Program and 
extension of pilot program.

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SUMMARY: On October 16, 2017, the U.S. Small Business Administration 
(SBA) published a document announcing the Express Bridge Loan Pilot 
Program (Express Bridge Pilot). In that document, 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 document to revise certain 
program requirements. SBA continues to refine and improve the design of 
the Express Bridge Pilot and is issuing this document to expand program 
eligibility to include small businesses nationwide adversely impacted 
under the Coronavirus Disease (COVID-19) Emergency Declaration (COVID-
19 Emergency Declaration) issued by President Trump on March 13, 2020. 
Further, SBA is revising program requirements to allow Express Bridge 
Pilot loans made under the COVID-19 Emergency Declaration to be 
approved through March 13, 2021. The modification of eligibility 
criteria and program requirements will allow small businesses adversely 
impacted by the COVID-19 emergency to qualify for loans through the 
Express Bridge Pilot. Finally, SBA is extending the term of the Express 
Bridge Pilot from September 30, 2020 to March 13, 2021, to assist small 
businesses that may experience delayed effects resulting from the 
COVID-19 emergency to benefit from the Express Bridge Pilot and to 
allow SBA to continue its evaluation of the program.

DATES: The revised program requirements described in this document 
apply to all Express Bridge Pilot loans approved on or after April 1, 
2020, and the Express Bridge Pilot will remain available through March 
13, 2021.

FOR FURTHER INFORMATION CONTACT: Dianna Seaborn, Director, Office of 
Financial Assistance, U.S. Small Business Administration, 409 Third 
Street SW, Washington, DC 20416; Telephone (202) 205-3645; email 
address: [email protected].

SUPPLEMENTARY INFORMATION: On October 16, 2017, SBA published a 
document announcing the Express Bridge Pilot. (82 FR 47958) The Express 
Bridge Pilot is designed to supplement the Agency's disaster response 
capabilities and authorizes the Agency's 7(a) Lenders with SBA Express 
lending authority to deliver expedited SBA-guaranteed financing on an 
emergency basis for disaster-related purposes to small businesses 
located in communities impacted by a Presidentially-declared disaster, 
while the businesses apply for and await long-term financing (including 
through SBA's direct disaster loan program, if eligible). On May 7, 
2018, SBA published a document to revise certain Express Bridge Pilot 
requirements. (83 FR 19921) The Express Bridge Pilot applies the 
policies and procedures in place for the Agency's SBA Express program, 
except as outlined in the Federal Register documents published on 
October 16, 2017, and May 7, 2018.
    SBA continues to refine and improve the design of the Express 
Bridge Pilot and, therefore, is issuing this document to expand 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. Because the COVID-19 Emergency 
Declaration covers all states, territories, and the District of 
Columbia, eligible small businesses under the Express Bridge Pilot will 
now include small businesses located in any state, territory and the 
District of Columbia that have been adversely impacted by the COVID-19 
emergency. (Previously, those small businesses would not be eligible 
for Express Bridge Pilot loans because the program has been limited to 
eligible small businesses located in Primary Counties that have been 
Presidentially-declared as major disaster areas, plus any Contiguous 
Counties.)
    Further, SBA is revising program requirements to allow Express 
Bridge Pilot loans made under the COVID-19 Emergency Declaration to be 
approved

[[Page 18108]]

through March 13, 2021. This is a revision to the current policy that 
states Express Bridge Pilot loans can only be made up to six months 
after the date of the applicable Presidential disaster declaration. 
This revision will allow small businesses that experience delayed 
impacts resulting from the COVID-19 emergency to benefit from the pilot 
program.
    Finally, SBA is extending the term of the Express Bridge Pilot. The 
Express Bridge Pilot is set to expire September 30, 2020. With this 
Notice, SBA is extending the pilot program through March 13, 2021. This 
extension will provide time for small businesses that may experience 
delayed effects resulting from the COVID-19 emergency to benefit from 
the Express Bridge Pilot and to allow SBA to continue its evaluation of 
the program in accordance with the criteria set forth in the October 
16, 2017 Federal Register notice.
    All other SBA terms and conditions and regulatory waivers related 
to the Express Bridge Pilot remain unchanged, including that loans made 
under the Express Bridge Pilot may be eligible to be repaid with the 
proceeds of an SBA direct disaster loan, including loans made under the 
Economic Injury Disaster Loan (EIDL) Program. All references to 
disasters in the Express Bridge Pilot program requirements will include 
the COVID-19 emergency.
    SBA has provided more detailed guidance in the form of a program 
guide, which has been updated to conform to this Notice and is 
available on SBA's website, https://www.sba.gov/document/support--express-bridge-loan-pilot-program-guide. SBA will also provide 
additional guidance, if needed, through SBA notices, which also will be 
published on SBA's website, http://www.sba.gov.

    Authority: 15 U.S.C. 636(a)(25); 13 CFR 120.3.

    Dated: March 19, 2020.
Jovita Carranza,
Administrator.
[FR Doc. 2020-06356 Filed 3-30-20; 8:45 am]
BILLING CODE P