Patriot Expres SBA Loans Are For More Than Veterans

Business Plans for Veterans

Veterans have been polishing up their business plans lately. Two years ago the SBA began its Patriot Express Pilot Loan Program. The goal was to assist military veterans and their spouses start or expand small businesses. The program recently surpassed the milestone of $300 million in money lent. It has gove to 3,750 veterans and their spouses.

First of all, who is eligible? Patriot Express loans are available to:

• Veterans;
• Active-duty service members eligible for 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.

I am glad that reservists and spouses are included in the program. They have given a great deal to our country as well.

The loans are not confined to existing businesses. The loans can be used to start up a small business, or can also go toward most business purposes, such as business expansion, working capital, or the purchase of equipment, inventory, or business occupied real estate.

While as much as $500,000 can be borrowed, the average loan amount is $85,000. Loans above $350,000 require the borrower to put up all available collateral.

Interest on the loans matches the interest on SBA 7(a) loans -- prime plus 2.25% if the loan matures in less than 7 years, or prime plus 2.75% if it mature in 7 or more years. Interest rates can be slightly higher if the loan amount is under $50,000.

Like all SBA loans, Patriot Express loans are made through participating private lenders. According to the SBA, April and May were record months for the program. The American Recovery and Assistance Act (ARRA) likely contributed by boosting the SBA backing for these loans to 90%.

The SBA also touts these loans, a streamlined version of its Express Loan program with better terms, the quickest loans for the SBA to turn around. Once the SBA gets an application from a lender, it purportedly turns it around within 24 hours.

The hitch in the whole program is that some banks just don't want the paperwork connected with the Patriot Loans. We still get messages from vets, especially those looking for smaller loans, who have having a great deal of trouble. My advice now is what it was when the problems first surfaced: contact your US Representative and Senator. Give them names/ dates/ experiences. Get them on your site. Few people are as well equipped to help out veterans than our representatives in Congress.