Loans Go To Military Service Members, Veterans, and Spouses
November 8, 2007; 02:32 AM
WASHINGTON, D.C. – In the four months since its launch, the U.S.
Small Business Administration’s SBA Patriot Express Loan Initiative has
produced more than 500 SBA guaranteed loans amounting to $51 million, with an average loan amount of nearly $102,000, the SBA announced.
“Each day sees the number of Patriot Express loans rise and the
number of participating lenders, currently more than 700 nationwide, rise as
well,” said SBA Administrator Steve Preston. “We thank these lenders, and
those coming aboard, for their special efforts on behalf of entrepreneurial veterans and others in our military community.
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.
“We have received a remarkable amount of support for Patriot Express
from the lending and military communities since we launched the program,”
said Preston. “It is important for us, particularly around Veterans Day,
to support our servicemen and women, so I am particularly pleased by the
quick turn-around time to process and approve Patriot Express loans. This
success shows government can work faster and better.”
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.
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 secure all available collateral to back 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 seven years; prime + 2.75 percent for seven years or more. Interest
rates can be higher by two percent for loans of $25,000 or less; and one
percent for loans between $25,000 and $50,000.
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, spouses of active duty members, and the widowed spouse of a service
member 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.
Patriot Express loans have been approved in all 50 states, the District
of Columbia, the U.S. Virgin Islands, Puerto Rico and Guam and currently
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. Most applications are approved by SBA within 24 hours.
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