WASHINGTON -
The Patriot Express program will guarantee up to 85% for loans up to $150,000, and up to 75% for loans between $150,000 and up to $500,000. The program is also open to spouses of veterans. The SBA's other guaranteed loan programs cover 50% of the loan amount, up to a maximum of $350,000.
SBA officials said the new loan program is aimed at helping those veterans returning from Afghanistan and Iraq and starting their own businesses, or those in the National Guard who had their businesses interrupted by call-ups for the two wars.
"With military activations and extensions having a profound impact on entrepreneurs in the military community, SBA is committed to helping America's service men and women during the continuing War on Terror," SBA Administrator Steven Preston said. "We believe that Patriot Express, supported by SBA's other services, goes directly to the needs of these American Patriots who wish to start businesses, and in the process encourages job creation and growth, an essential part of the president's economic agenda."
NCUA Board member Gigi Hyland, the agency's liaison to the SBA, touted the new program as another way to provide capital to credit union small business members.
"This new SBA initiative is another mechanism credit unions can use to help members who have so bravely served our country through military service," said Hyland. "Military activations and extensions are having a profound impact on entrepreneurs in the military community. This initiative offers credit unions an opportunity to assure that these entrepreneurs have the tools to rebuild their businesses or to start up new businesses after their service is done."
Eligible military community members include: 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 any service member or veteran who died during service or of a service-connected disability, according to Hyland, who attended last week's roll-out.
SBA officials estimated that 15% of all small businesses are owned by veterans or their family members.
Applications for loans under the new program will be accepted, starting June 28, by credit unions and banks participating in the SBA's guaranteed loan program. Decisions can be made in one or two days because the lenders make the decisions themselves.
The Patriot Express Loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Patriot Express Loans feature SBA's lowest interest rates for business loans, generally 2.25% to 4.75% 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.
