Patriot Express Loan Program

 Lender Participation For Patriot Express Loans

 

A lender may be eligible to participate in Patriot Express if it currently participates with SBA and meets certain performance standards. There are no minimum SBA loan volume requirements to begin making Patriot Express loans.  A non-SBA lender that makes a reasonable number of commercial loans of $50,000 or less may be eligible to participate, but must apply for SBA loan authority.
 
Loans made under this program generally follow SBA’s standards for Size, Use of Proceeds, Type of Business and Availability of Funds. Differences unique to Patriot Express are noted below.

Patriot Express Loan Program
Discussion Item:

 

Patriot Express Loan Break Down

 
Maximum Amount
Of Loan

 

$ 500,000

 
Maximum SBA Guaranty

 

75% to 85% Depending On The Situation

 
Interest Rate:

Rate may be fixed or variable (WE HIGHLY SUGGEST YOU GO FOR THE FIXED RATE).   Lenders and borrowers can negotiate the interest rate but lenders may not charge more than 2.25 % over the Prime Interest Rate for any loan that is less than 7 years in duration.

Lenders may not charge above 2.75%  over the Prime Interest Rates for loans greater than 7 years in duration.

Lenders may charge an additional 1% for loans of $ 50,000 or less.

Lenders may charge and additional 2% for loans of $ 25,000 or less. 
 Eligibility Criteria:

 The borrow must meet the standard SBA eligibility requirements and must be 51% or greater in the ownership or controlling interest of the business by:

  • A Veteran (other than dishonorably discharged)
  • Active Duty Military Person with the potential to retire within 24 months.  Separation must be within 24 months to qualify or a Soldier being discharged within 12 months of discharge (TAP eligible)
  • Reservist or National Guard Soldier
  • Current Spouse of one of the above qualified soldiers or veteran who died of a service connected disability.
 Revolving Credit Lines:

 

Revolving Loans allowed up to 7 years with maturity extensions permitted at the outset.

 
 SBA Turn Around Time:

 

Lender should have an answer within 36 hours of packet submission

 

 

Forms needed

 

  This process has been stream lined.  Lenders use mostly their own forms and procedures for this type of loan
 Collateral:

 

 Lenders are not required to take collateral for loans up to $ 25,000.

Lenders may use their existing collateral policy for loans over $ 25,000 up to $ 350,000, but must take available collateral for loans above $ 350,000.

 
 Credit Decision

 

 Is made by the lender.

 

 Purchase

 

 May request expedited SBA purchase on small loans or in situations where liquidation may be delayed.

 

  

Character Considerations For SBA Express Loans:
  • SBA must determine if the principals of each applicant firm have historically shown the willingness and ability to pay their debts and whether they abided by the laws of their community.
  • The Agency must know if there are any factors which impact on these issues.
  • Therefore, a "Statement of Personal History" is obtained from each principal.

  

Background Information For The
SBA Patriot Express Loan

 

The SBA’s Patriot Express Loan Program has been significantly streamlined from what the program used to be. 

  • The SBA Loan Program has made a significant effort to assist entrepreneurs within the Military Community.  The following quotes comes from www.sba.gov and really signifies the SBA’s mindset and commitment with our Military Heros.

     

    With military activations and extensions having such a profound impact on entrepreneurs in the military community, it is our obligation to make sure they have the tools to rebuild their businesses or to start-up new businesses in order to provide themselves and their families with a livelihood after their service is done." 
    www.sba.gov

      This SBA Loan Program is truly deserved and more Veterans and Current Military Members should take advantage of this program.  If you know someone who qualifies for this SBA Loans Program…do them a favor and let them know about it.  It can get them started on a whole new life.

 

Great Stats On Veterans

  • There are about 1.2 million men and women on active duty in the armed forces, and 1.8 million in the Reserves and National Guard. Of that total, 1.5 million have been deployed to Afghanistan or Iraq since the war on terror began.
  • More than 14 percent of businesses in America are owned by veterans.

 

If you are a vet and want more information on the

Patriot Express Program call one of our professionals

we will help every step of the way.