The SBA or the Small Business Administration is one of the offices today which is helping military veterans realize their dreams of finally having their own business and getting away from 9 to 5 employments. They have a program called the Patriot Express Pilot Loan Initiative. Aside from the veterans themselves, spouses and members of the military community can also benefit from SBA’s veterans business loans.
Who is eligible for SBA loans?
The loan is offered to military community members who include active-duty service members, reservists of the National Guard, veterans, service-disabled veterans, current spouses of all military personnel active and retired and widowed spouses of service member or veterans. Getting a business loan is quite different from other types of loans. It is not a way to get fast cash but to help you establish a business. How do you get a business loan has a different answer from “How do I get 10,000 fast?”.
What are the types of business loans being offered by the SBA?
You must remember that the SBA itself does not lend the money. They are not the source of the money. What they do is simply guarantee the loan for the veterans. The Patriot Express small business loans are within the SBA’s Basic 7(a) loan guaranty program. These are also called primary loans. The money secured from the SBA loan can be used for various business purposes like machinery, business expansion, furniture and fixtures and many other things.
There is a network of participating lenders around the country which can lend money to people who qualify for the SBA loan program. You can get loans as much as $500,000 and you can also qualify for the maximum loan guaranty of up to 85% for loans of $150,000. However, for small business loans which are above $350,000, the lenders are required to take all the available collateral.
A lot of people are asking what types of interests apply to loans guaranteed by the SBA. You will be very delighted to know that they offer some of the lowest interest rates for business loans. The interest rates generally range from 2.25% to 4.75% percent over prime. However, this will still depend on the maturity and the size of the loan.