The SBA's network of nationwide lenders offers the quickest turnaround time on the new Patriot Express loan. There are loans for a maximum of $500,000 that qualify for SBA's guaranty of the highest amount of 85 percent for loans lower than $150,000 and the highest amount of 75 percent for loans more than $150,000 to $500,000. Lenders are required to take all available collateral if the loan value is above $350,000.

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. These programs have been established by the SBA to aid those who have served our country and risked their lives."

Patriot Express was recommended to the President by the task force of returning global war on terror heroes, led by the Secretary of Veteran’s 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.Since the war on terror began, there has been 5 million troops deployed to Afghanistan and Iraq.

By the numbers.

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

Patriot Express Pilot Loan Initiative

Overview

The U.S. SBA's Patriot Express Pilot Loan Initiative, announced recently by the Small Business Administration, is a scheme devised for military community veterans and members, who wish to start 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.

Eligibility for Reservists and National Guard members is limited to current members of the Reserve or Guard (and the people they are married to).

Former Reservists and National Guard members (and their significant others) Unless they qualify as active duty veterans, they are not eligible.

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.

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.

Since Patriot Express confers extensive authority and autonomy to lenders, SBA requires that all loan proceeds be used solely for business-related purposes. 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. All SBA loan proceeds must be used only for business-related purposes, as communicated by the lender verbally and in the loan authorization, and as stated in the certification from the borrower.

Loans from Patriot Express usually sport the Small Business Association's best business loan interest rates.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Lenders are not allowed to charge fees for prepayment on SBA loans.