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SBA Patriot Express Small Business Loans

Small Business Loans for the U.S. Military Community

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Updated May 10, 2008
The U.S. Small Business Administration's (SBA) Patriot Express small business loan program offers small business loans of up to $500,000 to members of the U.S. military community.

Who Can Apply? Patriot Express small business loans are available to U.S. military community members including; veterans, service-disabled veterans, service members leaving active duty, Reservists and National Guard members, current spouses of any of the above, spouses of active duty members, and the widowed spouse of a service member who died during service, or of a service-connected disability.

How Much Can You Borrow? Patriot Express small business 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 secure all available collateral to back the loan and may obtain collateral for smaller loans depending upon individual bank requirements.

What About Interest Rates? Interest rate maximums for Patriot Express loans are the same as those for regular SBA 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 percent for loans of $25,000 or less; and one percent for loans between $25,000 and $50,000.

What Can You Use the Money For?Patriot Express small business loans can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.

Patriot Express small business loans have been approved in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and Guam and currently range from $5,000 to $375,000 in individual loan amounts. After loan applications are approved by the bank, they are submitted to SBA for approval. Most applications are approved by SBA within 24 hours.

In the program's first ten months alone, Patriot Express produced 1,304 guaranteed small business loans amounting to more than $135 million, with an average loan amount of nearly $104,000. Nearly 15 percent of the loans went to military spouses.

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