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The SBA network of participating lenders includes Patriot Express which has the fastest turnaround time for loan approvals. 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 more than $350,000, it is a requirement for lenders to take all of the collateral that is available. The SBA has lot of programs aimed to support people who suffer an economic or social disadvantage, and provide assistance to rebuild economically depressed or hurricane shattered communities. According to Joel Szabat, the SBA’s Chief of Staff, “The SBA has only one set of programs designed to help people, not for who they are or where they live, but for what they done. These programs have been established by the SBA to aid those who have served our country and risked their lives.The President was given a recommendation for Patriot Express from the task force of heroes who have returned from the global war on terror, who's leader is Jim Nicholson the Secretary of Veteran's Affairs. There are approximately 1.2 million men and women on active duty, 1.8 million in reserves and the National Guard. Of that total, 1.Since the war on terror began, there has been 5 million troops deployed to Afghanistan and Iraq. By the numbers. America today has nearly 45 million veterans. Veterans contribute much to the community of small business owners. The Small Business Association has statistics that show fifteen percent of all veterans are self-employed. Patriot Express Pilot Loan Initiative Overview The U.S. Small Business Administration 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. Military members and their relatives who are eligible: • Veterans • Veterans disabled while on active duty • Active-duty service members who qualify for the Transition Assistance Program • Members of the Reserve and National Guard • Spouses of any of the above • Widows and widowers of active service members or veterans who died in service or as a result of a service related disability The SBA and resource supporters are making efforts to augment this loan initiative through increased counseling and education programs. To qualify for being a Reservist or National Guard member one must be a current member of the Reserve or Guard. present spouses also included.. Former Reservists and National Guard members (significant others as well) are not eligible, unless they qualify from active duty as Veterans. Any veteran that has not been dishonorably discharged has been given a DD form 214, which must be certified and shown. A Patriot Express loan is to be used for many business purproses, such as expansion, start-up, working capital, equipment purchases, inventory, or business-occupied real-estate purchases. Patriot Express loan proceeds should only be used for business-related ends, due to the special nature of this initiative, in particular the autonomy and authority that SBA delegates to individual lenders. SBA therefore expects lenders to use reasonable methods to ensure that loan proceeds are used for business-related expenses, which means conformance with verification procedures at least as thorough as those used for their non-SBA guaranteed commercial loans. At bare minimum, lenders have to communicate thoroughly to borrowers that any SBA loan proceeds are to be used only for business-related purposes, that they must clearly set forth this requirement on the loan authorization, and that they must secure certification from borrowers that all the loan proceeds will be used that way. Patriot 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. Another benefit of SBA loans is that lenders are not permitted to charge prepayment fees.
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