Patriot Express loans

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In June 2007, the U.S. Small Business Administration (SBA) announced its new Patriot Express Loan Pilot for the military community's entrepreneurs. The initiative is available to veterans, active duty personnel who are in the military's Transition Assistance Program, and all Reservists and National Guard members. In addition, the spouse of any of the above communities, or the widowed spouse of a service member who died while in the service, or of a service-connected disability, is also eligible.

Patriot Express loans can go up to $500,000 -- well above the SBA Express maximum of $350,000.

Unlike SBA Express, the loans will carry the full 75-85 percent guaranty: an 85 percent SBA guaranty for loan amounts up to $150,000, and then a 75 percent guaranty from $150,000 to $500,000.

Patriot Express loans will have the same maximum interest rates of SBA's regular 7(a) loans, which are lower than SBA Express. For example, a $100,000 loan for 6 years at the maximum SBA Express interest rate of 4.5 percent over prime would total approximately $143,580 in payments. The same loan for the same term under Patriot Express would be limited to 2.25 percent over prime or approximately $135,200 in payments.

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