WASHINGTON — The Marine Retailers Association of America alerted its members this week to a special Small Business Administration loan program for veterans who own a small business.
In the two years since it launched, the SBA’s Patriot Express Pilot Loan initiative has supported more than $315 million in loans to more than 3,750 veterans and their spouses. After passage of the Recovery Act, the number of Patriot Express loans increased to record levels in April and May, MRAA said in a membership advisory.
According to MRAA, Patriot Express loans are a streamlined loan product based on the SBA Express Program, but with an enhanced guaranty and interest rate. Loans are available up to $500,000 and qualify for SBA’s maximum guaranty of up to 90 percent.
The Patriot Express loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real estate purchases.
Interest rate maximums for Patriot Express loans are the same as those for regular 7 (a) loans: a maximum of Prime plus 2.25 percent for maturities under seven years and Prime plus 2.75 percent for seven years or more.
Patriot Express is available to the military and veterans and have been approved for all 50 states with guarantees generally ranging between $5,000 and $375,000 with an average loan of about $85,000. Most applications are approved by SBA within 24-hours.