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Veterans who serve their country and want to start a business can take advantage of the business loan option called the Patriot Express Loan Initiative that was funded as part of the American Recovery and Reinvestment Act (ARRA). This can provide a needed leg up to new veteran entrepreneurs or even to those who have owned a business for quite a while.

Loan Terms

Lenders who make veterans loans can rest assured that they are backed by an SBA and VA guarantee.  The guarantee covers from 75 percent to 90 percent of the value of the loan depending on the total amount funded, making these loans attractive to lenders. For lowering the risk of lending to this demographic, lenders are limited to the amount of interest they can charge, making terms favorable for businesses that qualify for these loans.  The maximum funding available for Patriot Express loans is $500,000, however the average loan is typically $82,000 or less.

How Do You Qualify?

You or your spouse must be a veteran.  You may have to prove a service record for he qualifying person in your family and to make sure they are either active duty, disabled, or honorably discharged. You will need to have at least 15 percent of the necessary money to start your business, and it has to be your own money. Just because the loan is backed by the SBA and you qualify for the demographic, it does not mean you don’t have to put in a thorough application with a business plan and a keen understanding as to how you will make your business profitable.  Being a part of the demographic just gets your foot in the door, it does not guarantee that you will be funded and you must do the hard work to prove you are a good risk to the lenders and the SBA, who also must approve the loan.

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