Application Form For The Sba Patriot Express Loan: Fill & Download for Free

Many of the answers already provided are spot-on. I just want to take a different approach by laying out these Veteran’s benefits one by one, comparing them to the civilian equivalent, if any.First, let’s look at the GI Bill, one of the most popular and well-known benefits. First of all, I joined many years before the Post-9/11 GI Bill came into effect. I had to pay $100 per month into the Montgomery GI Bill for the first year I was in the Marine Corps. Over the next couple decades, I’m guessing that wise investment in mutual funds would have grown that money into the total benefit I’m authorized to receive from the GI Bill. Now, since 9/11, we have the Post-9/11 GI Bill that nearly every honorably-serving veteran is eligible for. But, for me to access that, I have to irrevocably give up my Montgomery GI Bill. Keep in mind also that you can’t just “cash in” this benefit to use on whatever you want. The money is only received if you’re enrolled in an approved program of higher learning.So, what’s the civilian equivalent? Well, I’m sure I’m missing some programs, but there are Pell Grants and student loans accessible via the FAFSA application process. I have two college-age daughters, and despite living on a limited income with sporadic post-service employment, we haven’t qualified for a Pell Grant yet. Not sure why, but my daughter’s far wealthier friends are getting them all the time. Hmmm…Next, let’s look at the VA Home Loan. Great program. I took advantage of it several times. But, let’s be clear - the ONLY benefits of this program are that the lending criteria are slightly eased because the government backs a portion of the value of the loan and you can do 100% financing. They don’t make your payments for you. The interest rates typically aren’t any better than a non-VA loan, and it’s still up to the lending institution to approve your credit.For your average civilian, there is Freddy Mac and Fannie Mae. There are FHA loans and others. All these also have relaxed approval criteria, 100% financing and are available to lower-income and rural Americans. They are at least as good as the VA loans and available to nearly anyone with the financial need.Here’s one that really gets me, because I’m an aspiring entrepreneur - The “Small Business Loan”. I put it in quotations, because there currently isn’t such a thing specifically for veterans. Yet most Americans, including me, assumed there is. A few years ago, the SBA did away with the Patriot Express Loan. This was a great program, similar to the VA Home Loan. It didn’t really provide a specific monetary benefit. It simply made access to a good loan easier by reducing the money-down requirement (90-100% financing) and federal backing of a portion of the loan. But, that is now gone. I work in the veteran non-profit space, and have spoken at length with many reps from the SBA and VA. There is currently NOTHING in the way of a small business benefit for veterans.That leads me back to the Post-9/11 GI Bill. Recently, a bill was signed into law for a pilot program allowing GI Bill recipients to use their benefits for such things as purchasing a franchise, buying equipment, hiring employees, etc, in the pursuit of starting a small business. This is only a pilot program, and is not available everywhere. It also dips into the benefits that would otherwise be used for higher education. So, it’s not an additional benefit, just an allowance to use an existing benefit for a different purpose.Next, let’s look at VA Disability Compensation. Ever heard of Workmen’s Compensation? That’s what this is, only for veterans. Veterans don’t have access to Workmen’s Compensation as a result of military service, EVEN THOUGH WE PAID INTO THE SYSTEM through our taxes for the entire time we served! Ostensibly, that money ought to get diverted to the VA system to pay for our coverage there, but I’m sure it doesn’t. So, to recap, every American worker has access to Workmen’s Compensation, based on how much they’ve paid into the system over their career… Except for veterans.Finally, let’s look at military retirement. Retirement is not an un-earned entitlement. It is no different from a pension plan with a major corporation. Every serviceman knows that, if they do 20-plus years of honorable service, they are now vested and can collect a retirement check. You have to do the time to earn it. This is not a military-specific concept, so to single it out as a military-specific benefit is ludicrous. I worked for the federal government (retiring as a Marine Master Sergeant) for 25 years. I earned my pension as much as the railroad employee or FBI agent whose pension is backed by the federal government.To sum it all up, the one thing that distinguishes every Veteran from his or her civilian counterpart is this: At some point, every Veteran wrote a blank check to the American People, payable on demand, in an amount up to and including our very lives. No one else but our First Responders can relate to that level of selfless service. Every other American citizen has the option to just get another job or walk away from a situation. Not us.So, I hope this little overview shows how 1) veterans certainly earned the benefits they receive, and 2) how there is a civilian equivalent for all the major benefits that veterans receive. And, in some cases, the civilian equivalent is better.

The SBA helps small businesses obtain needed credit by giving the government’s guaranty to loans made by commerciallenders. The lender makes the loan and SBA will repay up to 85% of any loss just in case of default. Since this is often a loan ,applications are submitted to the bank and loan payments are paid to the bank. The bank is additionally liable for closing the loan and disbursing the loan proceeds.SBA’s involvement is restricted to reviewing the application submitted by the bank to assure they meet eligibility and creditstandards. SBA provides the bank with a written Authorization outlining the conditions of the SBA guarantee; any materialchanges to the present authorization generally require SBA approval. Most commercial banks and a few non-bank commercial lenders participate during this program.The 7(a) guaranteed loan program is SBA’s primary lending program. The borrower applies to a financial institution , not the SBA.The lender applies to the SBA for a loan guaranty. The SBA can process the lender’s request through a spread of methods.Guarantees are up to $4,500,000 of every loan made by participant lenders. These loans typically range from $25,000 to $5million and are repaid in monthly installments. they will be used for a spread of business purposes including capital ,equipment acquisition, debt refinance, change of ownership, and land purchases. Maturities depend upon the utilization of loanproceeds but typically range from 5 to 25 years.Find the SBA Participating Lender List at Seattle District Office under “Resources”Streamlined 7(a) Loan ProcessingPreferred Lender program - SBA has delegated certain lenders the authority to approve SBA loans unilaterally. Preferredlenders operate under an equivalent 7(a) guaranteed loan guidelines as detailed above. SBA generally provides a loan guarantee to the lender within 24 hours of their request.SBA Express Loan Program - SBAExpress loans are backed by an SBA guarantee of fifty percent, the lender uses its own application and documentation forms and therefore the lender has unilateral credit approval authority as within the PLP Program. This method makes it easier and faster for lenders to supply small business loans of $350,000 or less, with SBA generally providing a loan guarantee to the lender within 24 hours of their request.Patriot Express Loans - Loans of up to $500,000 are available to veterans and members of the military community. Eligible military community members include: Veterans and Service-disabled veterans; Active-duty service members eligible for the military’s Transition Assistance Program; Reservists and National Guard members; current spouses of any of the above; and therefore the widowed spouse of a service member or veteran who died during service or of a service-connected disability.These loans are often used for many business purposes, including start-up, expansion, equipment purchases, capital, inventory or business-occupied real-estate purchases. They qualify for SBA’s maximum guaranty of up to 85% for loans of $150,000 or less, and up to 75% for loans over $150,000 up to $500,000. Patriot Express loans feature SBA’s fastest turnaround time for loan approvals, and lowest interest rates for business loans - generally 2.25 percent to 4.75 percent over prime depending upon the dimensions and maturity of the loan.General Credit RequirementsSBA and personal lenders consider the subsequent criteria to check credit worthiness.(1) Repayment Ability: you want to show that you simply can meet business expenses, owners draw, and loan payments from the earnings of the business. this is often usually demonstrated through historical performance and/or thoroughly documented cash flow projections.(2) Management: you want to show ability to work the business successfully. For a start-up, you ought to have experience in the type of business you plan to start out , also as some significant work experience at a management level.(3) Equity: The owners must have enough of their own money at stake within the business:(a) For a replacement Business (or when buying a business) you ought to have approximately one dollar of money or business assets for every three dollars of the loan.(b) For a longtime Firm, the after-the-loan business record should show no quite four dollars of total debt for every dollar of net worth (i.e., a 4:1 Debt/Equity ratio - may vary by industry).Definition of Equity: you'll be required to pledge nonbusiness assets (often a mortgage on your personal residence may be required for collateral). However, this could not be confused with equity within the sense it's used here. As used here, the equity is that the owner’s net investment within the business.(4) Credit History: Your personal and company credit histories are going to be reviewed. Prudent lenders prefer applicants who have a history of meeting their obligations. If your credit record has blemishes but there are extenuating circumstances, prepare to explain fully.Guarantee Portion - Under the 7(a) guaranteed loan program SBA typically guarantees from 50% to 85% of an eligible bank loan up to a maximum guaranty amount of $3,750,000. the precise percentage of the warranty depends on a spread of things such as size of loan and which SBA program is to be used. this may be figured out between the SBA and your bank.Amounts - the utmost loan amount is $5 million. the entire SBA guarantee for anybody borrower might not exceed $3,750,000.Maturity - Up to 25 years for land acquisition or construction. Most other SBA loans are limited to 10 years. Working capital loans are generally limited to seven years.Interest Rates - SBA sets a maximum rate on its guaranteed loans. the speed could also be either fixed or variable, as determined between the lender and applicant. the speed is pegged to the prime rate as published daily within the Wall Street Journal.The formulas are:- Prime + 2.25% for loans > $50,000, maturity < 7 years.- Prime + 2.75% for loans > $50,000, maturity 7 years or more.- Lenders have the choice of charging a further 1% on loans under $50,000 and a couple of on loans under $25,000.The SBA Loan Guarantee Program:How it Works?What a lenderlooks for?New Business(1) Describe intimately the sort of business to be established.(2) Describe your experience and management credentials.(3) Prepare an in depth estimate of what proportion capital are going to beneeded to start out . State how much you've got and the way much you'll got to borrow.(4) Prepare a current personal financial statement, listing all personal assets and liabilities.(5) Prepare a month-by-month projection of revenues, expenses and profit for the first twelve months. Also do a companion income projection for an equivalent period. Explain your major assumptions in an accompanying narrative.(6) List the collateral to be offered as security for the loan, with estimates of themarket value of every item.(7) Take this material to your banker. If the bank wants an SBA guaranty for your loan, they will make application to us. You affect the bank; the bank deals with SBA.Established Business(1) Current business financial information. Prepare a current record and an income (profit and loss) statement for current year up to the date of the balance.(2) Historical business financial information: Prepare income statements and balance sheets for the past three full years. don't include personal items on the statements. Reconcile the equity balances between each year.(3) Prepare a month-by-month projection of revenues, expenses and profi ts forthe next twelve months. Also do a companion cash flow projection for the same period. Explain your major assumptions in an accompanying narrative.(4) Prepare a current personal financial statement for every owner, partner, or stockholder owning a minimum of 20% of the business.(5) List the collateral to be offered as security for the loan, with estimates of themarket value of every item.(6) State the quantity and intended uses of the loan.(7) Take this material to your banker. If the bank wants an SBA guaranty for your loan, they will make application tous. You affect the bank; the bank deals with SBA.Revised October 2011Loan Fees - (Temporarily waived per the 2009 Recovery Act)SBA charges a fee for its guaranty. The fee is levied thereon portion of the loan guaranteed by SBA, not the face amount of the loan. it's passed along to the borrower and is typically financed - i.e., built into the loan amount.Fees for loan maturity exceeding 12 months:- 2% of the guaranteed portion for loans up to $150,000- 3% of the guaranteed portion for loans above $150,000 up to $700,000- 3.5% of the guaranteed portion for loans above $700,000Fees for loan maturity of 12 months or less:- .25% (1/4 of 1%) of the guaranteed portionPrepayment Penalties - Only on loans with terms of 15 years or longer. Decreasing prepayment penalties apply during the primary three years of the loan.Collateral - SBA’s policy has two parts:(1) When a loan guaranty is approved, we expect all available company assets to be offered as collateral. If company assetsare insufficient to completely secure the loan, liens on personal assets could also be required. Often, this suggests a lien on residential realestate.(2) On the opposite hand, if adequate collateral simply isn't available, this fact alone won't cause SBA to say no an otherwise qualified loan.Eligibility - Most small businesses are eligible to receive SBA loan guarantees, however ineligible applicant cases include:1. The applicant isn't a mall business.2. The funds are otherwise available on reasonable terms, e.g., if the bank would make an equivalent loan terms available without an SBA guaranty, or if personal assets might be used without hardship to the owners.3. The loan is to pay off inadequately secured creditors.4. Your business is engaged in speculation, lending, investment, or rental land .5. The applicant may be a nonprofit enterprise (except employee stock ownership programs).