A few weeks ago we were notified about a new SBA sponsored program to provide quick funding for existing and new businesses. The program, facilitated through Borrego Springs Bank, is a new and innovative program that we hope will help a lot of businesses in our region, and further afield.
You can learn more about the the program here: http://www.borregospringsbank.com/sba_express.asp but i'll run through it briefly below.

First, the program focuses on loans of up to $25,000, but can facilitate borrowing of $50,000 or more. Here's the rules regarding eligibility:
  • -All SBA eligible industries considered
  • -Start-up businesses allowed
  • -Loan proceeds for business acquisition not allowed
  • -Working capital loans to businesses after acquisition has been fully completed are permitted
  • -Franchise must be on the SBA approved Franchise Registry http://www.franchiseregistry.com
  • -Liquid assets of individual owner cannot exceed $100,000 – does not include IRA and other qualifying Retirement Accounts
  • -No tax return required
  • -Utilizes Fair Isaac Credit Score System, which evaluates credit score of the applicant and industry data including current and recent past due accounts; collection accounts have a very negative effect on the applicant's credit score and loan decision
  • The main feature of the program is that you get a preliminary yes or no in 48 hours or less (Right now they are experiencing a lot of applications, and our first client application has taken over a week, but that may be a short term issue). The other key feature is that you, the borrower must agree to work with what's termed an SBA Technical Assistant (TA). A TA is in essence a Mentor who works with you to prepare the paperwork, signs-off on your business plan and stays and works with you for a minimum of a year. There are several SCORE Ulster counselors who are also approved SBA TAs, so just contact us if you want to look into this further.

    Overall, the program looks really exciting and has a lot of promise. As I said previously, we are in the process of submitting the first loan application via one of our counselors/TAs, so we will know better how it works in a few weeks.