Wednesday, September 19, 2012

Vet Start-Ups Have Financial Resource

Vets who want to start their own business have a unique financing option: the Small Business Administration’s (SBA) Patriot Express loan program.
Patriot loans feature lower interest rates than other SBA programs, depending on the size and maturity of the loan.  There is a maximum loan amount of $500,000 under this program; there is no minimum.  The SBA will guaranty up to 85% of the total loan amount.
Jeff Ivey, VP-SBA/Business Lending says, “Harborstone is committed to this program and we are actively seeking veteran-owned businesses in need of financing.  This really is a great program and very easy to use for both the business and for the lender.”
Eligible businesses apply directly to local financial institutions (banks, credit unions), and not to the SBA.  Once all of the information is collected and the loan is approved by the lender, SBA approval typically occurs the same day.  Businesses that qualify must be owned by an eligible military community member, which includes:

  • Veterans
  • Service-disabled veterans
  • Active-duty service members eligible for the military’s Transition Assistance Program
  • Reservists and National Guard members
  • Current spouses of any of the above
  • The widowed spouse of a service member or veteran who died during service or of a service-connected disability
Loan proceeds can be used to finance the following:

  • Start-up costs for a new business
  • Equipment purchases
  • Business-occupied real-estate purchases
  • Inventory and working capital
  • Preparing your business for the possibility of your deployment
  • Establishment of more reasonable repayment terms on existing business debt

No comments: