SBA's Patriot Express initiative passes $100M mark

SBA officials announced last month that Patriot Express has produced 1,007 loans with an average loan amount of $101,000.

SBA Administrator Steve Preston said in a news release that more than 773 lenders nationwide are participating in Patriot Express.

“We have received a remarkable amount of support for Patriot Express from the lending and military communities since we launched the program,” Preston added. “It is important for us to continue to support our servicemen and women.”

Through Patriot Express, loans are available for as much as $500,000. Loans of $150,000 or less qualify for SBA’s maximum loan guaranty of 85 percent, and loans for more than $150,000 qualify for a 75 percent guaranty. For loans of more than $350,000, lenders are required to secure all available collateral to back the loan, and they may obtain collateral for smaller loans depending on individual bank requirements, the release said.

Interest rate maximums for Patriot Express mirror those for regular 7(a) loans – a maximum of prime plus 2.25 percent for maturities of less than seven years and prime plus 2.75 percent for maturities of at least seven years. For loans of less than $25,000 through Patriot Express, interest can be increased by 2 percent; 1 percent can be added for loans between $25,000 and $50,000.

Patriot Express loans can be used for most business purposes.

The initiative builds on more than $1 billion in loans SBA guarantees each year for veteran-owned businesses, as well as counseling and procurement support given each year to more than 100,000 veterans, service-disabled veterans and Reserve members.