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 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.

 

Lenders may use Patriot Express only for 7(a) loans, not for the Microloan program, the Certified Development Company (CDC/504) program or for any other SBA pilot program loans, unless specifically allowed by that pilot. In addition the following loans or loan programs are not allowed under Patriot Express:

 

      (a)   Disabled Assistance Loan Program (DAL)
      (b)   Energy Conservation
      (c)   International Trade,except for Export Express loans described in further detail in

              section 11 below
      (d)   Qualified Employee Trusts (ESOP)
      (e)   Pollution Control Program
      (f)    Defense Loan and Technical Assistance (DELTA)
      (g)   CapLines Program (including Builders Loan Program)
      (h)   Community Investment Adjustment Program (CAIP)

 

Size
Eligible And Ineligible Types Of Business (Except where noted below)


SBAExpress loans cannot be made to:

 

      (a)   Agricultural and farm businesses
      (b)   Fishing and shore operations (including commercial fishing activities and the

             construction of new fishing vessels)
      (c)   Medical facilities involving any type of extended care/assisted living situation. 

             (These could be eligible for standard 7(a) loan processing, but additional 

             analysis would be required, which would preclude the expedited handling under

             Patriot Express.) Routine medical laboratories/facilities, physician/dental

             offices, veterinarians, etc., are eligible for Patriot Express processing

      (d)   Mines (including sand and gravel pits)
      (e)   Applicants with operations, facilities, or offices located overseas (other than those

             strictly associated with the marketing and/or distribution of products exported from

             the U.S.)
      (f)   Businesses engaged in teaching, instructing, counseling or indoctrinating religion

             or religious beliefs, whether in a religious or secular setting (Businesses engaged in

             moderate such activity could be eligible for standard 7(a) loan processing,

             but additional analysis would be required, which would preclude Patriot Express’s

             expedited procedures.)
      (g)  A business deriving directly or indirectly more than de minimis gross revenuet

             through the sale of products or services, or the presentation of any depiction or

             displays, of a prurient sexual nature or that presents any live performances of a

             prurient nature.

 

Use Of Proceeds
SBA Fees for 7(A) Loans
Availability Of Funds From Other Sources: