In continuation from Wednesday’s post.
The rate for the Patriot Express Loan can be negotiated by borrowers, but lenders cannot charge more than 2.25 percent over Prime for loans less than 7 years long. Loans that are over 7 years cannot exceed 2.75 percent over the Prime Rate. Lenders are allowed to charge 1 percent more for any loan that is over $50,000. If the loan is $25,000 or less, the lender can charge as much as 2 percent more for the loan. The rates can be either variable or fixed.
The office of Veterans Business Development wants to maximize the availability, usability and applicability of small business programs for Veterans, Reserve Component Members, Service-Disabled Veterans as well as their survivors and dependents.
Veterans who are in need of a SBA backed loan must meet certain requirements. Veterans who have been dishonorably discharged are not eligible to obtain a loan through this program. Active Duty military personnel who are due to retire within 24 months, Reservist and National Guard who own 51 percent of the business are eligible to apply. Current spouses or spouse of service member who died in the line of duty are also eligible.
SBA Loans are not available to all companies. The types of companies that are not eligible for loans are: medical facilities providing extended care and/or assisted living services; farm or agricultural businesses; or fishing or shore operations businesses (including construction of boats). Companies that have offices, facilities or operate overseas; mines; or businesses that engage in instructing, counseling, or teaching religious beliefs are not eligible for the Patriot Express Loan program.
