A. Basically, the government's SBA loan programs are operated through private-sector lenders. The agency does not lend money or make grants. It does, however, guarantee loans made by banks, credit unions and other private lenders.
SBA lenders in the local community offer what's known as the Patriot Express Loan Initiative. One of its features is an expedited turnaround time for loan approvals. Loans of $150,000 or less qualify for the SBA's guarantee of 85 percent. Those greater than $150,000 to $500,000 are guaranteed up to 75 percent.
If your loan request is $350,000, lenders are required to take all available collateral. Interest rates are generally 2.25 percent to 4.75 percent over prime, depending on the size and terms of the loan.
Patriot Express loans can be used for startup, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases, as well as other business-related purchases. Eligibility is extended to veterans, disabled veterans, active-duty service members in the military's Transition Assistance Program, Reservists and National Guard members, as well as current spouses of those mentioned, and the widowed spouses of service members or veterans who died during service or of a service-connected disability.
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