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HomeNewsArchivesSBA's Patriot Express Loans Available to Vets and Military Community Entrepreneurs

SBA's Patriot Express Loans Available to Vets and Military Community Entrepreneurs

Feb. 10, 2009 – In just 20 months, the U.S. Small Business Administration's Patriot Express Pilot Loan Initiative has approved more than $250 million in loan guarantees to nearly 2,900 veterans and their spouses who are using the SBA-guaranteed funds to establish and expand their small businesses.
Overall, loan amounts have averaged around $88,000 per loan. Some 15 percent of the loans have gone to military spouses. Patriot Express, launched June 28, 2007, builds on the more than $1 billion in loans SBA guarantees annually for veteran-owned businesses, and the counseling assistance and procurement support it provides each year to more than 100,000 veterans, service-disabled veterans and reserve members. Veterans own more than 14 percent of businesses in America.
The Patriot Express loan is offered by SBA's network of participating lenders nationwide and features SBA's fastest turnaround time for loan approvals. Loans are available up to $500,000 and qualify for SBA's maximum guaranty of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000 up to $500,000. For loans above $350,000, lenders are required to take all available collateral.
The loans can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. They 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. Local SBA district offices will have a listing of Patriot Express lenders in their areas. Details on the initiative can be found at www.sba.gov/patriotexpress
Patriot Express is available to military community members including veterans, service-disabled veterans, active-duty service members participating in the military's Transition Assistance Program, Reservists and National Guard members, current spouses of any of the above, and the widowed spouse of a service member or veteran who died during service, or of a service-connected disability.
They have been approved in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and Guam; they generally range from $5,000 to $375,000 in individual loan amounts. After loan applications are approved by the bank, they are submitted to SBA for approval, and most are approved by SBA within 24 hours.
In addition to district offices, SBA's resource partners SCORE, Counselors to America's Small Business, Small Business Development Centers, and Women's Business Centers provide local and online assistance with: writing a business plan, financing options to start or grow your business, managing the business, expanding the business and selling goods and services to the government.
For those who are already small business owners and who expect call-up, the SBA and its resource partners have expertise to assist with preparing their businesses before deployment, managing their businesses, selling goods and services to the government, obtaining other SBA financing and financial assistance, and obtaining loans for economic injury. Military Reserve Economic Injury Disaster Loans (MREIDL) of up to $2 million are available for small businesses sustaining economic injury because an owner or essential employee has been called to active duty as a military reservist. Go to www.sba.gov/vets

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