Small Business Loans for Veterans and
their Spouses: The New Patriot Express Business Loan
by Lisa Phillips
March 2008
their Spouses: The New Patriot Express Business Loan
by Lisa Phillips
March 2008
| Copyright RebuildCreditScores 2008. All Rights Reserved |
The U.S. Small Business Administration (SBA)
has launched a new small business loan for
veterans, military service members, and even
their spouses.
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.
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.
has launched a new small business loan for
veterans, military service members, and even
their spouses.
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.
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:
What the loan can be used for
The Patriot Express Loan Initiative can be used for most business purposes, including the
following:
For more information visit: www.sba.gov/patriotexpress
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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