Gulf Opportunity Pilot Loan Program
by JamieD, Former Moderator
- Created: September 25, 2009, 6:15 pm
- Updated: February 16, 2011, 2:40 pm
Although Hurricanes Katrina and Rita took place several years ago, efforts to provide disaster relief to the devastated communities still continue. SBA, FEMA, and other government agencies are actively trying to revitalize these areas. Small businesses are in vital need of expedited, moderately sized loans ($150,000 or less). In an effort to provide a program beyond the traditional realm of disaster relief, SBA implemented the Gulf Opportunity Pilot Loan Program (GO Loan Pilot). Originally implemented as a temporary program in November 2005, this program was recently extended through September 30, 2010.
The GO Loan Pilot provides expedited small business financing to communities severely impacted by Hurricanes Katrina and Rita. Through this program, SBA provides its full guaranty of 85% with streamlined and centralized loan processing to all lenders that make expedited 7(a) loans to small businesses in the designated disaster areas for both hurricanes. The GO Pilot Loan Program applies the same policies and procedures as the SBAExpress Loan Program with several important differences:
The GO Loan Pilot is limited to small businesses located in, locating to, or re-locating in Presidentially-declared disaster areas as a result of Hurricanes Katrina and Rita.
The maximum loan size is $150,000 with an 85% guaranty instead of the 50% guaranty provided by the Express program.
GO lenders can act as delegated authorities to refinance existing debt as long as the new loan doesn't exceed $150,000.
Refinanced loans of existing debt are not subjected to the requirement that the new loan must increase the applicant's cash flow by 10%.
Requirements of the GO Pilot Loan Program:
Eligible small businesses must be located in, or re-locating to, specific disaster related parishes and counties
Borrowers must meet SBAExpress eligibility requirements
Loan approvals must be made by September 30, 2010
An application of business that answers "yes" to any questions in 1 - 6 of the SBA Form 2281 will not be eligible for processing
For more information:
Message Edited by JamieD on 09-25-2009 06:17 PM
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