Content area
Full text
The new SBA Patriot Express Pilot Loan program brings broad appeal to the franchising community and its VetFran partners.
The U.S. Small Business Administration recently introduced a new loan program that is targeted to benefit many U.S. citizens with military service backgrounds and those individuals seeking to transition into private-business ownership. According to the SBA, more than 14 percent of businesses in America are owned by veterans, and the SBA guarantees more than $1 billion annually in loans for veteran-owned businesses. The new SBA Patriot Express Pilot Loan program features an expedited loan application process and can be an effective resource for new franchise operators with prior military service experiences. Additionally, the new program will be available to those concepts whose initial investment ranges may be as high as $700,000.
Earlier this year, SBA announced the launch of its new Patriot Express Pilot Loan Initiative program. The program was established to support both veterans and members of the military community with resources to either establish or expand a small business. This new loan program, similar to the existing 7(a) and SBAExpress loan programs, will be directly funded through the SBA's nationwide network of participating lenders. Given the relatively small maximum loan limits, the new program will also feature the SBA program's fastest turnaround time for loan approvals. The Patriot Express loan proceeds can be broadly used for most business purposes, including start-ups, purchases, expansion, equipment purchases, working capital, inventory or owner-occupied business real estate acquisitions. The Patriot Express Loan pilot program, which became effective on June 13, will operate thru Dec. 31, 2010, at which time the SBA will then re-evaluate its performance and decide where to modify or continue the program.
The Patriot Express Pilot Loan program was structured as a hybrid between the SBA's existing 7(a) loan program and its standard SBAExpress Loan program with some of the best features being taken from both established programs. One significant difference is that the Patriot Express Pilot Loan program provides for larger maximum loan limits than...