Small Business Loans for
Veterans and their Spouses:
The
New Patriot Express Business Loan
by Lisa Phillips
March 2008
Copyright RebuildCreditScores 2008.
All Rights Reserved
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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.
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:

  • 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.

What the loan can be used for

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
 
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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.
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