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Outdoorsy’s Guide to the Express Bridge Loan for RV Business Owners


The Express Bridge Loan Pilot Program (EBL) provides expedited bridge loan financing for businesses that have been affected by COVID-19. The loans are backed by the Small Business Administration (SBA) and helps supplement the SBA’s existing disaster loan program.

Small businesses can borrow up to $25,000 for disaster-related purposes through March 13, 2021. Because it’s an express loan, the SBA has stated that you’ll receive the funds within 45 days of approval, and no later than 90 days.

The loan must be used for working capital and can only be used to cover operational expenses to support the survival or the reopening of your small business.

Is my RV business eligible for an Express Bridge Loan?

Any U.S.-based small business that can prove to be adversely affected by COVID-19 is eligible for an Express Bridge Loan. So, yes! As long as your RV meets the requirements of and is considered a small business.

How will my RV business be evaluated?

To qualify for the bridge loan, your business will be evaluated by your credit scores, tax transcript, and existing banking relationship.

  • SBSS score: Your Small Business Scoring Service Score will be calculated during the loan application. A combination of consumer credit bureau data, business bureau data, borrower financials, and application data will be used to generate a score. The minimum score is 130 but that may change over time.
  • Personal credit score: Required for each guarantor in the business.
  • IRS tax transcript or equivalent: The lender must submit a signed IRS Form 4506-T to the IRS and obtain an IRS tax transcript. A tax transcript summarizes your tax return info and includes your adjusted gross income.
  • Existing banking relationship: Acceptable documentation may include a copy of a current bank statement or other official bank documents that reference the EBL applicant’s business address

Express Bridge Loan’s nuts and bolts

Let’s talk numbers. What are the interest rates and fees associated with this loan? The maximum allowable interest is 6.5% over the prime rate (currently 4.25%). Interest rates can be fixed or variable.

Express Bridge Loan fees include:

  • Upfront guaranty fees: Not more than 2% of the guaranteed portion of a loan if the total amount of the loan (maximum of $500)
  • Annual service fee: An annual service fee will be charged of no more than 0.55% of the outstanding balance of the guaranteed portion of each loan.
  • Application fee: the greater of 2% of loan amount or $250
  • Late payment fee: not to exceed 5% of scheduled payment

 

While we’re at it, don’t forget to read the fine print!

  • Eligibility period: Available until March 13, 2021
  • Multiple loans: Technically you can only get one EBL loan per Declaration, but since it is intended to be shorter-term until longer-term funding is available, it doesn’t keep you from receiving additional SBA funding.
  • Maximum loan amount: $25,000
  • Maximum guaranty percentage: 2% of the loan amount
  • Maximum loan term: Seven years.
  • Secondary market sales prohibited: EBL’s cannot be sold on the SBA secondary market.

 

You can learn more about how to apply for an Express Bridge Loan through the SBA’s in-depth, downloadable guide to the Express Bridge Loan Pilot Program.

Note: This article is accurate as of publishing on 4/15. We will keep updating as new information is released.

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