Community Express
Community Express
About Program
Issue:
SBA Community Express
Maximum Loan Amount: $250,000
Maximum SBA Guaranty %: Follows Standard SBA Guaranty Percent
Interest Rate: CommunityExpress loans are subject to the same maximum interest rate as all SBA loans
Eligibility Decision: By SBA
Revolving Lines of Credit: Allows revolving loans up to 7 years
Turnaround Time: Mostly Within 36 Hours
Forms: Lender Uses Mostly Own Forms and Procedures
Collateral:
Lenders are not required to take collateral for loans up to $25,000. Lenders may use their existing collateral policy for loans over $25,000 up to $150,000.
For Loans greater than $150,000, follows SBA's general collateral policy
Credit Decision: By Lender
Technical Assistance: Arranged or Provided by Lender
Lender Participation
The SBA initiated the CommunityExpress program in May of 1999 with about 10 NCRC lenders. The Agency is now expanding the program to PLP lenders that have at least a 90 percent currency rate on their SBA 7(a) portfolio for the last 3 fiscal years and to selected non-PLP lenders that meet the eligibility requirements for participating in the SBAExpress program.
Technical Assistance has been recognized by both the NCRC and the SBA as often crucial to the success of these businesses. As a result, the CommunityExpress program includes a specific technical assistance component. Borrowers must receive pre- and post-loan closing technical and management assistance from local non-profit providers and/or from participating lenders, with that assistance coordinated, arranged and, when necessary, paid for by CommunityExpress lenders. CommunityExpress lenders may also consider this technical assistance as a collateral enhancement.
CommunityExpress lenders must establish (and document) an internal procedure to ensure the consistent delivery of appropriate and effective technical and management assistance. The process begins with the identification of qualified and committed T/A providers. The focus then shifts to the CommunityExpress applicant and the T/A provider’s development of a business plan (as appropriate) and an assessment of the applicant’s management and technical assistance strengths and weaknesses. If weaknesses are identified as a result of that assessment, the lender should document the T/A provider’s recommendations and the remedial plan. The lender, in cooperation with the T/A provider, is also expected to strongly encourage the applicant to follow that plan.
Additional Information
CommunityExpress loans must meet the basic 7(a) loan criteria except where differences specified below:
Size
Eligible And Ineligible Types Of Business
Types of Loans Not Allowable for CommunityExpress
(a) Disabled Assistance Loan Program (DAL)
(b) Energy Conservation
(c) International Trade
(d) Qualified Employee Trusts (ESOP)
(e) Pollution Control Program
(f) Defense Loan and Technical Assistance (DELTA)
(g) Export Working Capital Program (EWCP); and
(h) CapLines Program (including Builders Loan Program)
Use Of Proceeds
Types of Businesses Not Allowable for CommunityExpress
(a) Agricultural and farm businesses
(b) Fishing and shore operations (including commercial fishing activities and the construction of new fishing vessels)
(c) Medical facilities (including residential care facilities)
(d) Mines (including sand and gravel pits)
(e) Applicants doing business in foreign countries
(f) Businesses engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting; and,
(g) A business with any products or services of a sexual nature.
Availability Of Funds From Other Sources
Maturity Terms For 7(A) Loans
Interest Rates Applicable to (A) Loans
Percentage of Guaranty on 7(A) Loans
SBA Fees for 7(A) Loans
Prepayment Penalties for SBA 7(A) Loans
Community Express - To learn more about this author, visit Start Your Business's Website.
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CommunityExpress is a pilot SBA loan program that was developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its member organizations. Under the pilot, which is available to selected lenders, an SBAExpress like program will be offered to pre-designated geographic areas serving mostly Low and Moderate Income areas and New Markets small businesses. The program will also include technical and management assistance, which is designed to help increase the loan applicant's chances of success.
About Program
Issue:
SBA Community Express
Maximum Loan Amount: $250,000
Maximum SBA Guaranty %: Follows Standard SBA Guaranty Percent
Interest Rate: CommunityExpress loans are subject to the same maximum interest rate as all SBA loans
Eligibility Decision: By SBA
Revolving Lines of Credit: Allows revolving loans up to 7 years
Turnaround Time: Mostly Within 36 Hours
Forms: Lender Uses Mostly Own Forms and Procedures
Collateral:
Lenders are not required to take collateral for loans up to $25,000. Lenders may use their existing collateral policy for loans over $25,000 up to $150,000.
For Loans greater than $150,000, follows SBA's general collateral policy
Credit Decision: By Lender
Technical Assistance: Arranged or Provided by Lender
Lender Participation
The SBA initiated the CommunityExpress program in May of 1999 with about 10 NCRC lenders. The Agency is now expanding the program to PLP lenders that have at least a 90 percent currency rate on their SBA 7(a) portfolio for the last 3 fiscal years and to selected non-PLP lenders that meet the eligibility requirements for participating in the SBAExpress program.
Technical Assistance has been recognized by both the NCRC and the SBA as often crucial to the success of these businesses. As a result, the CommunityExpress program includes a specific technical assistance component. Borrowers must receive pre- and post-loan closing technical and management assistance from local non-profit providers and/or from participating lenders, with that assistance coordinated, arranged and, when necessary, paid for by CommunityExpress lenders. CommunityExpress lenders may also consider this technical assistance as a collateral enhancement.
CommunityExpress lenders must establish (and document) an internal procedure to ensure the consistent delivery of appropriate and effective technical and management assistance. The process begins with the identification of qualified and committed T/A providers. The focus then shifts to the CommunityExpress applicant and the T/A provider’s development of a business plan (as appropriate) and an assessment of the applicant’s management and technical assistance strengths and weaknesses. If weaknesses are identified as a result of that assessment, the lender should document the T/A provider’s recommendations and the remedial plan. The lender, in cooperation with the T/A provider, is also expected to strongly encourage the applicant to follow that plan.
Additional Information
CommunityExpress loans must meet the basic 7(a) loan criteria except where differences specified below:
Size
Eligible And Ineligible Types Of Business
Types of Loans Not Allowable for CommunityExpress
(a) Disabled Assistance Loan Program (DAL)
(b) Energy Conservation
(c) International Trade
(d) Qualified Employee Trusts (ESOP)
(e) Pollution Control Program
(f) Defense Loan and Technical Assistance (DELTA)
(g) Export Working Capital Program (EWCP); and
(h) CapLines Program (including Builders Loan Program)
Use Of Proceeds
Types of Businesses Not Allowable for CommunityExpress
(a) Agricultural and farm businesses
(b) Fishing and shore operations (including commercial fishing activities and the construction of new fishing vessels)
(c) Medical facilities (including residential care facilities)
(d) Mines (including sand and gravel pits)
(e) Applicants doing business in foreign countries
(f) Businesses engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting; and,
(g) A business with any products or services of a sexual nature.
Availability Of Funds From Other Sources
Maturity Terms For 7(A) Loans
Interest Rates Applicable to (A) Loans
Percentage of Guaranty on 7(A) Loans
SBA Fees for 7(A) Loans
Prepayment Penalties for SBA 7(A) Loans
Community Express - To learn more about this author, visit Start Your Business's Website.
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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