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The U.S. Small Business Administration launched the Express Bridge Loan (EBL) Pilot Program on March 25 to help existing small businesses obtain financing if they already have a relationship with an SBA approved lender.

The EBL Pilot Program is designed to supplement the SBA’s direct disaster loan capabilities and authorizes SBA Express Lenders to provide expedited SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes to small businesses located in communities affected by the coronavirus emergency. The loans will help small businesses that are waiting for long-term financing, including through the SBA’s Economic Injury Disaster Loan Program.

Lenders must have an existing banking relationship with the bridge loan applicants. The small business must have been operational when the declared disaster started and must meet all eligibility requirements for the SBA’s 7(a) loan program.

The SBA’s Economic Injury Disaster Loan Program had received about 40,000 application as of March 23. Disaster loans typically take three to four weeks to process. A spokesman for the SBA’s Massachusetts district said in an email that high volume could lead to longer time frames for disaster recovery loans.