The Small Business Association has a program called the Patriot Express Pilot Loan Initiative. This is a program designed especially for military members and veterans who wish to start or expand a small business. There are multiple advantages for veterans who own their own businesses. Vetbiz assists veteran-owned businesses register so they can receive priority for many government contracts.
The Patriot Express is not a guaranteed loan. The veteran who wishes to gain the loan must meet veteran status eligibility, as well as any requirements in place from the loan servicer. These additional requirements can include business management training or experience, a solid and well developed business plan with financial predictions, and of course good credit.
Eligibility for the Patriot Express initiative is restricted to:
Veterans, including service-disabled veterans
Active duty military members who are eligible for the military’s Transition Assistance Program
Reservists and National Guard members
Current spouses of any of these four
Widowed spouses of a service member who died during service or a veteran who died of service related causes
Like most business loans, there are certain restrictions on what the loan proceeds can be used for.
Business-occupied real estate purchases
Infused working capital
Business management costs
Preparing your business in the case you are deployed
Setting up to sell goods and services to the government
Recovery from a natural disaster
One of the great benefits of using a Patriot Express loan from the SBA is that they are often awarded the lowest interested rates of any SBA loans. This generally ranges from 2.25% to 4.75% above prime. To find a lender that manages SBA loans in your area, check out this page from the SBA.
Photo thanks to _tar0_ under creative common license on Flickr.