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.
Like this article? Share it with your friends
 |
Related Articles |
|
 Getting Underneath the Anger
|
| |
Have you ever been in a business situation or personal situation and you felt your insides heating up, ready to explode? Try this five minute exercise to get to the real issue underneath the anger.
|
|
Personal Success - Are You Trying To Impress?
|
| |
Success is not something you put on like the clothes that you wear. It is something that comes from the inside out. It is a matter of “being” instead of “doing”.
|
|
Fred Smith Has Lift-Off: The Beginnings of Federal Express
|
| |
 “By the early '70s when I'd gotten out of the service it was very clear that this new society was coming in earnest,” recalls Smith. “And so, at that point I said, ‘What the hell, let's try to put it together.’” Aft...
|
|
Six Reasons to Give
|
| |
If you run a business, you undoubtedly feel many pressures on your time and money. Why would you want to add "giving to the community" to your "to do" list? Here are six reasons .....
|
|
Women Entrepreneurs Do You Really Want EVERYTHING
|
| |
The reason why many of us women feel exhausted on all planes - physically, mentally, emotionally, spiritually - of our existence is because our social conditioning has lured many women into believing in - and adopti...
|
|
|
Start Your Business
(Visit Start Your's Website)
Starting a business requires you to
complete a number of steps and make some
key decisions. Though part of your overall
plan, you’ll need to select a location,
decide on a business structure, and obtain
the necessary licenses and permits. In
addition, determining which financing
options will meet your short-term needs
and long-term goals is crucial. Within
this section, we’ll provide information on
these topics along with guidance on buying
an existing business, copyright and
trademark issues, and getting support from
an outside expert.
|
|
|
|
Mastermind Group Resources - Strategies to get the most from your Mastermind Group. The purpose of this blog is to share resources, tips, strategies, and ideas on how to build a Mastermind Group and make it more effective.
|
|
Selling to Small Business - Strategies to help you sell to small business entrepreneurs. The purpose of this blog is to outline strategies companies can take to effectively target small business owners.
|
|
|
Start Your Business's
Complete
List Of
SBA
Articles
|
|
|
If you enjoyed this article, get Start Your Business's Complete List of SBA Articles For FREE!
|
| |
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
