Patriot Express Pilot Loan Initiative |
By Andy Alexander The new SBA Patriot Express Pilot Loan Initiative is a 7(a) loan initiative offered by SBA’s widest network of lenders nationwide and features our fastest turnaround time for loan approvals. Loans are available up to $500,000 and qualify for SBA’s maximum guaranty of 85 percent for loans of $150,000 or less and 75 percent for loans over $150,000 up to $500,000. For loans above $350,000, lenders are required to take all available collateral. 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. Express loans feature SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime, depending upon the size and maturity of the loan. The Patriot Express Pilot Loan Initiative will operate through December 31, 2010, after which the SBA will evaluate its performance and make a decision whether to modify and/or continue the initiative. Those eligible, who have an idea for a business, can use a simple, self-assessment device to evaluate whether their dream of starting a business can become a reality. The Checklist for Starting a Business http://app1.sba.gov/survey/checklist/index.cgiis a comprehensive tool designed to prepare for self employment by analyzing the participant’s responses in key areas and providing a menu of supporting resources. The Patriot Express Pilot Loan Initiative will adopt many of the streamlined documentation and expedited processes and procedures of SBA’s highly successful SBAExpress loan program; however, there will be several critical differences. SBA’s guaranty of up to 85 percent will apply to Patriot Express loans of $150,000 or less and its guaranty of up to 75 percent will apply to Patriot Express loans above $150,000, which contrasts with the maximum 50 percent SBA guaranty that applies to all SBAExpress loans. Also, the maximum loan amount under Patriot Express Pilot Loan Initiative is $500,000, compared to the maximum loan amount of $350,000 available under SBAExpress. Lenders must use their existing prudent collateral practices for Patriot Express loans. For loans above $350,000, lenders must obtain all available collateral. Maximum interest rates for Patriot Express loans are the same as those allowed under SBA regulations for the 7(a) program, as opposed to the higher interest rates allowed under the SBAExpress program. For more details on this initiative access www.sba.gov/patriotexpress.
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The U.S. Small Business Administration (SBA) has announced the SBA’s “Patriot Express Pilot Loan Initiative” for veterans and members of the military community wanting to establish or expand small businesses. 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 a service member or veteran who died during service or of a service-connected disability.