Express Bridge Loan Pilot Program

Express Bridge Loan Coronavirus Expansions

Formed in 2017, the EBL program originally provided loans to small businesses in communities suffering from presidentially-declared disasters or SBA-declared disasters, according to the SBA. Under the program, SBA lenders could provide bridge loan financing for up to $25,000 for small businesses to be used for disaster-related purposes.

But as of March 25, 2020, SBA expanded its program eligibility to small businesses across the country that have sustained financial loss because of COVID-19. The expansion comes after President Trump’s COVID-19 emergency declaration. Normally, EBL loans can only be distributed for up to six months after the date of a Presidential Disaster Declaration. But the COVID-19 program expansions allow loans to be made through March 13, 2021. As for term lengths, the maximum loan term is seven years, but a lender may allow a longer term if the borrower doesn’t receive long-term disaster financing.

Express Bridge Loan Pilot Program: Who Qualifies?

The coronavirus expansions to the express bride loans apply to small businesses in any American state, territory and the District of Columbia that were affected by COVID-19. The SBA mandates that the business must have been operational when the virus was declared an emergency and must meet all other SBA 7(a) loan requirements. In addition, EBL loan lenders must document that EBL applicants had an operating business as of March 13, 2020 and that the applicant was adversely affected by COVID-19, according to SBA’s guidelines. SBA deems any small business eligible if it meets either of the following conditions:

• For Presidential Disaster Declarations, small businesses that were located, as of the date of the applicable disaster, in Primary Counties that were declared disaster areas under the Presidential Disaster Declaration or in any Contiguous Counties; or

• For the COVID-19 Emergency Declaration, small businesses located in any state, territory and the District of Columbia that have been adversely impacted by the COVID-19 emergency

You can apply for an express bridge loan by contacting your local SBA District Office. Read more about the SBA Express Bridge Loan Pilot Program here.

WHAT ILLINOISANS NEED TO KNOW ABOUT THE MAY 1 MASK MANDATE

Beginning May 1, Illinois residents will be required to wear a mask or face covering in public places and in situations where they are unable to keep their distance from others. The new mandate is part of Gov. J.B. Pritzker’s extension of the stay-at-home order.

Many suburbs already implemented the mask requirement before the governor announced the new policy. The order now applies to all residents and businesses throughout the state.

Is there a certain type of mask I should wear?

What qualifies as a mask is broad. The N95 respirators and surgical masks should be reserved for emergency workers, according to the Centers for Disease Control and Prevention. Other face coverings for the general public can include bandanas, scarfs or T-shirts. There are resources online from the CDC and others with demonstrations on how old shirts can be made into a mask without sewing. The key requirement is that it covers both the nose and mouth. The CDC notes:

• Masks are intended to stop you from spreading the virus to others, not to stop you from being exposed.

• They should fit snugly but be comfortable on the face. Ear loops and multiple layers of fabric are recommended.

• Masks should not be touched after they are on. They can be removed by ear loops, then you should wash your hands immediately and launder the mask before using again.

When do I have to wear a mask?

Masks will be required in nearly every public setting and all individuals over the age of 2 will have to wear them, provided they are not medically prohibited. The executive order states they are needed “when in a public place where they can’t maintain a six-foot social distance.” This means people are required to wear them when entering any business or indoor public setting. Masks are not needed outside in parks, as long social distancing of six feet or more is maintained.

How is this going to be enforced?

The requirement will not be enforced in a heavy-handed fashion. Pritzker said enforcement will be done at the local level, so it is up to the businesses to ensure their customers are properly protected before entering. Law enforcement does not need to arrest or fine someone who isn’t wearing a mask but should be reminding the community of the new requirements.

Why do we need to wear masks?

The point of wearing a mask is to protect others. The idea is that if one person is an asymptomatic carrier of COVID-19, wearing a mask will limit their ability to transmit the virus to others. The Centers for Disease Control and Prevention strongly agrees with Illinois’ order to require masks in public.

Do people in other states have to wear masks?

Illinois is far from being the first state to require the use of a mask in public. Many stores had already required shoppers to wear a mask upon entering. Anyone still looking to travel will also likely find they must wear a mask before boarding a plane.

How long will masks be required?

Wearing masks in public places will likely become common practice for the foreseeable future, not just in Illinois but in most of the world. Experts believe it will be necessary so life can go on with some semblance of normality until a vaccine or cure is developed. A vaccine could be at least a year away, according to the most optimistic predictions.

Additional Funding Notice: Congress Replenishes PPP & EIDL

Congress has approved a new $480 billion package to deliver aid to small businesses and hospitals and expand COVID-19 testing. The package includes an additional $310 billion for the Paycheck Protection Program (PPP) and $60 billion for the Economic Injury Disaster Loans (EIDL) Program, including the emergency loan advance grants. Businesses that have already submitted a successful application for the PPP may receive funding under the new appropriations, although it could take some time to arrive as banks and the SBA begin processing applications again.

Businesses that have not applied for the PPP are urged to immediately contact their primary banking institutions to provide the necessary documentation. Estimates indicate that most of the new funding may already be called for, due to an overwhelming backlog of applications that have been accumulating since the initial round of funds were exhausted last week. We've updated our blog from last week about options for businesses—whether you've received PPP funding or not.

The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 9:30 AM CST.

With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.

We will provide further information on the availability of the EIDL portal to receive new applications as soon as possible.

To learn more about the relief options available for your business, click here.