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
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