The SBA network of participating lenders includes Patriot Express which has the fastest turnaround time for loan approvals. Loans qualifying for SBA's maximum guaranty--as much as 85 percent for loans up to $150,000 and 75 percent for loans ranging from $150,000 to $500,000--are available. For loans above $350,000, lenders are required to take all



available collateral.

The SBA has many programs targeted to assist economically and socially

disadvantaged individuals, and to help 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. The SBA has created these special programs for people who have served our country in the military.Patriot Express was a recommendation given to the president by one of the task forces greatest heroes on the war on terror, the Secretary of Veterans Affairs,Jim Nicholson. 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.Ever since the start of the war on terror began, more than 5 million soldiers have been deployed to places in Iraq and Afghanistan.

By the numbers.

There are nearly 45 million veterans in America today. In the small business community, veterans play an important role. Fifteen percent of veterans are their own bosses, according to stats from the SBA.

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.

Eligible military community members include:

•Veterans

•Service-disabled veterans

•Active-duty service members eligible for the military’s

Transition Assistance Program

•Reservists and National Guard members

•Current spouses of any of the above

•The widowed spouse of a service member or veteran who died

during service or of a service-connected disability

The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative.

In order to be eligible, you have to be a current member of the National Guard or a Reservist. (and their current spouses).

Retired from service in the National Guard or Army Reserve. (significant others as well) are not eligible, unless they qualify from active duty as Veterans.

The basic requirement is the certified copy of a DD Form 214, which is given to all veterans other than those who are dishonorably discharged.

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 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 the very least, lenders must convey to their borrowers that all SBA loan proceeds must be used for only business-related purposes, and convey that stipulation on the loan authorization, and also nail down a certification from the borrower that all loan proceeds will be so used.

Loans from Patriot Express tend to have the lowest interest rates available from the SBA.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Lenders cannot charge prepayment fees on SBA loans.