Need A Bridge Loan? Help Is Close!

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Business Plans for SBA Loans

A top Small Business Administration official said the agency is “working as quickly as possible” to implement a new bridge loan program created by the economic stimulus legislation.

Through this temporary program, small businesses that are having trouble making payments on existing debt will be eligible to apply for loans of up to $35,000. These can be used to refinance principal and interest on existing loans. The SBA will pay the interest on the loan, and small businesses will have a year before starting to repay it.

These business stabilization loans will be offered through the SBA’s network of private-sector lenders. The agency will guarantee 100 percent of the amount of the loan.

Eric Zarnikow, who heads the SBA’s Office of Capital Access, said the agency still is working out the details of the program.

“It is a brand new program that needs to be built from scratch, including developing policy and modifying computer systems, so it will take a little bit longer,” he said.

The new loans can’t be used to refinance existing SBA loans - an exception that dismayed some advocates.

But this new program will go a long way toward helping existing businesses bridge this economic crisis. We are excited about it, and you probably are too.

What do you need to do now? Get your business plan in order. Be sure to demonstrate the payback program in your financials. Show them that you are worthy of their confidence.