U.S. Small Business Administration Approves First Loans Under New Patriot Express Initiative

July 17, 2007; 01:38 AM
The U.S. Small Business Administration (SBA) and its network of lenders have already approved more than 20 loans under the Patriot Express Pilot Loan Initiative for military community entrepreneurs, rolled out one month ago.

Patriot Express is a streamlined loan product based on the agency’s highly successful SBA Express Program, but with enhanced guaranty and interest rate characteristics.

"We have received a remarkable amount of support for Patriot Express from the lending and military communities since we launched the program one month ago," said SBA Administrator Steven Preston. "It is important for us to support those who have served our country, so I am particularly pleased by the quick turn around time it has taken us to begin processing and approving loans under the new program. This success shows government can work faster and better."

The first three veterans in the nation to be approved and vetted for the Patriot Express Loan guaranteed by the U.S. Small Business Administration are:

Loan #1
$350,000 to veteran Matthew J. Lattig of Virginia, to start Charter Advisory Partners, LLC, from Sun Trust Bank of Atlanta, GA.

Loan #2
$100,000 to veteran Waldemar Medina of Connecticut, to start Walt Medina & Associates, LLC, from Webster Bank, National Association of Waterbury, CT.

Loan #3
$60,000 to veteran Roger Stone, owner of Full Line Electric LLC, from The Bank of Missouri in Perryville, MO.

Nearly 375 banks and lending institutions nationwide have already been approved to participate in Patriot Express, including many of SBA’s largest lenders.  SBA has many lenders in the approval process and continues to receive applications from lenders every day.

Patriot Express loans total more than $2 million dollars in the early stage of this initiative and range from $5,000 to $350,000 in individual loan amounts. Loans have already been approved in California, Connecticut, Florida, Missouri, New Mexico, Oregon, South Dakota, Texas, Virginia and Wyoming. After loan applications are approved by the bank, they are submitted to SBA for approval. Most applications are approved by SBA within 24-hours.

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 to secure the loan and may obtain collateral for smaller loans depending upon individual bank requirements. Interest rate maximums for Patriot Express loans are the same as those for regular 7(a) loans: a maximum of prime + 2.25 percent for maturities under 7 years; prime + 2.75 percent for 7 years or more.  Interest rates can be higher by 2 percent for loans of $25,000 or less; and 1 percent for loans between $25,000 and $50,000.

The Patriot Express initiative 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.

Patriot Express is available to military community members including veterans, service-disabled veterans, service members leaving active duty, 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.

The Patriot Express Pilot Loan Initiative can be used for most business purposes. Details on the initiative can be found at www.sba.gov/patriotexpress.