SBA Offers New Business Loans to Military Families and Veterans

The Patriot Express Loan Initiative Provides Streamlined Loans Up to $500,000

The Small Business Administration (SBA) has partnered with the financial industry to launch the new Patriot Express Pilot Loan to the military community that will assist American Patriots with business ventures. The Patriot Express Loan can be used for business start-ups, business expansions, equipment purchases, working capital, inventory, or business real estate purchases.

The Patriot Express Loan will provide streamlined loan turnaround to military members including veterans, service-disabled, active duty in transition, reservists, National Guard members, current spouses of any qualified military member, and widowed spouses of a service member who died during service or of a service-related disability. The new Patriot Express Loan Initiative is based on the successful SBA Express Program but with enhanced guarantee and interest rate terms.

Through the Patriot Express Loan Initiative, loans up to $500,000 are available through SBA's network of participating lenders nationwide. Local SBA district offices will have listings of Patriot Express lenders in the area. Patriot Express Loans will qualify for SBA's maximum guaranty of up to 85 % for loans of $150,000 or less and up to 75% of loans between $150,000 and $500,000. For business loans over $350,000, lenders must take all available collateral. The Patriot Express Loans will generally have interest rates from 2.25 to 4.75 above prime depending on the size and maturity of the loan.

According to the SBA website, the SBA guarantees more the $1 billion annually in loans for veteran-owned businesses. Veterans own more than 14% of American businesses. SBA Administrator Steven Preston says, " Veteran-owned businesses make significant contributions to the economy and because of the unique technical and leadership skills they acquire through military service, they can become successful entrepreneurs."