U.S. Small Business Administration
-- News Release --
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Release Date: August 20, 2008
Contact: Dennis Byrne (202) 205-6567
Release Number: 08-79
Internet Address: http://www.sba.gov/news
SBA’s Deputy Administrator Carranza Promotes
Patriot Express Loans to Vets
WASHINGTON – Speaking at an American Legion post in Frederick, Md., today,
U.S. Small Business Administration Deputy Administrator Jovita Carranza, U.S.
Representative Roscoe Bartlett (Md.), and SBA Maryland-area District Director
Stephen Umberger, highlighted the benefits of SBA’s Patriot Express loan
guarantees and encouraged military members who want to start or grow small
businesses to use them.
SBA’s Patriot Express Pilot Loan Initiative, started a little over a year ago,
continues to successfully help veterans and their spouses reach their dreams
of small business ownership and expansion. To date SBA has approved more
than 1,850 loan guarantees for more than $181 million at an average loan
amount of $98,000.
"SBA is committed to helping America’s service members and commends them
for all they have sacrificed for our country," said Carranza. "Veterans tend to
have the characteristics necessary for small business success: courage,
discipline and a strong work ethic. We believe that Patriot Express, supported
by SBA’s other services, goes directly to the needs of these American patriots
who wish to start or expand businesses, and create jobs and growth."
Patriot Express, launched last June 28, builds on the more than $1 billion in
loans SBA guarantees annually for veteran-owned businesses, and the
counseling assistance and procurement support the agency provides each year
to more than 100,000 veterans, service-disabled veterans, and Guard and
Reserve members.
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. The Patriot Express loan is offered by SBA’s network of
participating lenders nationwide and features SBA’s 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 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.
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. Local SBA district offices will have a listing of Patriot
Express lenders in their areas. Details on the initiative can be found at
www.sba.gov/patriotexpress.
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 percentage points for loans of $25,000 or less; and one
percentage point for loans between $25,000 and $50,000.
Patriot Express is available to military community members including 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.
Patriot Express loans have been approved in all 50 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico and Guam and generally range
from $5,000 to $375,000 in individual loan amounts. The average loan amount
is almost $98,000. Nearly 15 percent of those loans have gone to military
spouses. After loan applications are approved by the bank, they are submitted
to SBA for approval. Most applications are approved by SBA within 24 hours.
SBA has veterans’ business development officers in district offices in every
state and territory able to provide military community members full access to
the SBA’s range of programs and services. There are also five Veterans
Business Outreach Centers located in: Albany, N.Y.; Pittsburgh, Pa.; Lynn
Haven, Fla.; Edinburg, Texas; and Sacramento, Calif.
In addition to district offices, SBA’s resource partners SCORE, Counselors to
America’s Small Business; Small Business Development Centers; and Women’s
Business Centers provide local and online assistance with: writing a business
plan, financing options to start or grow your business, managing the business,
expanding the business and selling goods and services to the government.
For those who are already small business owners and who expect call-up, the
SBA and its resource partners can assist with preparing their businesses before
deployment, managing their businesses, selling goods and services to the
government, obtaining other SBA financing and financial assistance, and
obtaining loans for economic injury – Military Reserve Economic Injury Disaster
Loans (MREIDL). Loans of up to $2 million are available for small businesses
sustaining economic injury because an owner or essential employee has been
called to active duty as a military reservist.
The SBA and its Office of Veterans Business Development (OVBD) provides
comprehensive assistance, outreach and support to veterans. Each year the
SBA assists more than 100,000 veterans, service-disabled veterans and
Reserve Component members. Go to www.sba.gov/vets.
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