Patriot Express

    

Patriot Express Pilot Loan Initiative

 

 Issue:

 Patriot Express

Maximum Loan Amount:

$500,000

Maximum SBA Guaranty %:

75/85%

Interest Rate: Rate may be fixed or variable and lenders and borrowers can negotiate interest rate, but lenders may not charge more than 2.25 percent over Prime for loans of less than 7 years and 2.75 percent over Prime for loans greater than 7 years; lenders may charge 1 percent more for loans of $50,000 or less and 2 percent more for loans of $25,000 or less.
Eligibility Decision:

Must meet standard SBA eligibility and must be 51 percent or more owned/controlled by:

·    Veteran (other than dishonorably discharged)  

·    Active Duty Military potential retiree within 24 months of separation and discharging Active Duty member within 12 months of discharge (TAP eligible)

·    Reservist and National Guard

·    Current spouse of above or spouse of service member or veteran who died of a service-connected disability.

Revolving Lines of Credit: Revolving loans allowed up to 7 years with maturity extensions permitted at the outset.
SBA Turnaround Time Within 36 Hours
Forms: Streamlined: Lender Uses Mostly Own Forms and Procedures. 
Collateral: Lenders are not required to take collateral for loans up to $25,000; may use their existing collateral policy for loans over $25,000 up to $350,000, but must take available collateral for loans greater than $350,000.
Credit Decision

By Lender

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


 

Lender Participation

 

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. Contact your SBA district office for more information.

 

Size
Eligible And Ineligible Types Of Business
Use Of Proceeds
SBA Fees for 7(A) Loans
Availability Of Funds From Other Sources