Small Business Loans for Veterans and their
Spouses: The New Patriot Express Business Loan
by Lisa Phillips
March 2008
Spouses: The New Patriot Express Business Loan
by Lisa Phillips
March 2008
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The U.S. Small Business Administration (SBA) has launched a new small
business loan for veterans, military service members, and even their
spouses.
business loan for veterans, military service members, and even their
spouses.
What is a Patriot Express loan
The Patriot Express Loan is a streamlined loan product based on the SBA’s
Express Program. This loan program comes with enhanced guaranty and
low interest rates.
The new Patriot Express loan is offered by the SBA’s network of
participating lenders nationwide and offers a fast turnaround time for loan
approvals. Patriot Express loans are available in all 50 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico and Guam.
Loan amounts
Loans are available up to $500,000 compared to the maximum loan amount
of $350,000 available under SBA Express. The Patriot Express loan
qualifies for SBA’s maximum guaranty of up to 85% for loans of $150,000 or
less and up to 75% for loans over $150,000 up to $500,000 which
contrasts with the maximum 50% SBA guaranty that applies to all SBA
Express loans.
For loans above $350,000, lenders are required to secure all available
collateral to back the loan and may obtain collateral for smaller loans
depending upon individual bank requirements.
Interest rates
Patriot Express loans feature SBA’s lowest interest rates for business loans,
generally 2.25 percent to 4.75 percent over prime depending upon the size
and maturity of the loan. Lenders and borrowers can negotiate interest
rates which may be fixed or variable; however, there are limits on how much
a lender can charge.
For example: the interest rates are a maximum of prime + 2.25% for
maturities under seven years; prime + 2.75% for seven years or more. The
interest rates can be two percent higher for loans of $25,000 or less; and
one percent higher for loans between $25,000 and $50,000.
Who can get a Patriot Express loan
The loan is available to the following:
How the Money can be Used
The Patriot Express Loan Initiative can be used for most business
purposes, including the following:
For more information visit: www.sba.gov/patriotexpress
The Patriot Express Loan is a streamlined loan product based on the SBA’s
Express Program. This loan program comes with enhanced guaranty and
low interest rates.
The new Patriot Express loan is offered by the SBA’s network of
participating lenders nationwide and offers a fast turnaround time for loan
approvals. Patriot Express loans are available in all 50 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico and Guam.
Loan amounts
Loans are available up to $500,000 compared to the maximum loan amount
of $350,000 available under SBA Express. The Patriot Express loan
qualifies for SBA’s maximum guaranty of up to 85% for loans of $150,000 or
less and up to 75% for loans over $150,000 up to $500,000 which
contrasts with the maximum 50% SBA guaranty that applies to all SBA
Express loans.
For loans above $350,000, lenders are required to secure all available
collateral to back the loan and may obtain collateral for smaller loans
depending upon individual bank requirements.
Interest rates
Patriot Express loans feature SBA’s lowest interest rates for business loans,
generally 2.25 percent to 4.75 percent over prime depending upon the size
and maturity of the loan. Lenders and borrowers can negotiate interest
rates which may be fixed or variable; however, there are limits on how much
a lender can charge.
For example: the interest rates are a maximum of prime + 2.25% for
maturities under seven years; prime + 2.75% for seven years or more. The
interest rates can be two percent higher for loans of $25,000 or less; and
one percent higher for loans between $25,000 and $50,000.
Who can get a Patriot Express loan
The loan is available to the following:
- Veterans (other than dishonorably discharged)
- Service-disabled veterans
- Active-duty military eligible for the military’s Transition Assistance
Program for potential retirees within 24 months of separation and
discharging active duty members within 12 months of discharge
- Reservists and National Guard members
- Current spouses of any of the above
- Widowed spouse of a service member or veteran who died during
service or of a service-connected disability.
How the Money can be Used
The Patriot Express Loan Initiative can be used for most business
purposes, including the following:
- Start-up business
- Business expansion
- Equipment purchases
- Working capital
- Inventory or business-occupied real-estate purchases
For more information visit: www.sba.gov/patriotexpress
More Resources
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to grow your business try a
microloan from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
Home-based business
opportunities. Earn extra
income from your computer.
Bad Credit Business Loans
Find alternative funding
sources if you have bad credit.
Micro Business Loans
Do you need just a little cash
to grow your business try a
microloan from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
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The Patriot Express Loan can be used
to establish a new small business or
expand an existing business. The
Patriot Express Loan Initiative builds on
the more than $1 billion in loans the
SBA guarantees annually for
veteran-owned businesses.
One of the major benefits and
differences in this small business loan
for veterans is that it offers fast loan
approvals.
to establish a new small business or
expand an existing business. The
Patriot Express Loan Initiative builds on
the more than $1 billion in loans the
SBA guarantees annually for
veteran-owned businesses.
One of the major benefits and
differences in this small business loan
for veterans is that it offers fast loan
approvals.
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