What You Can Do with A Military Business Loan

There is a U.S. military loan that is offered to military members for the starting up of a small business. This loan program is offered by the U.S. Small Business Administration, otherwise known as the SBA. It is part of the Patriot Express small business loan program.

These loans are available to active military personnel, veterans, service members who are leaving active duty, the National Guard and people Army Reserves. They are also available to those currently married to any of these service personnel and also widows of service personnel who were killed on active service or who died as a result of a disability related to their service.

Small business loans can be obtained to a maximum amount of

$500,000 and these loans all qualify for the SBA’s percentage guarantee. This means that for loans less than or equal to $150,000 you get up to 85%. If your loan is between, $150,000 and $500,000, you get a percentage up to 75%. If you are seeking a loan that is more than $350,000 you will need to have all the collateral that you have available to be given to the lender as a guarantee of repayment of the loan. In some cases, there are collateral requirements for smaller loan amounts. This all depends on the individual lender as they all have their own guidelines.

Small business loans are used for almost all business purposes, such as start-up, expanding, purchasing equipment and capital to work with or to buy real estate or stock. If you are unsure about whether a business purpose is covered, talk with the lender and make sure that what you are doing qualifies for the small business loan. This will keep you from having any difficulties when you apply for the loan or after you are approved.

The SBA started its U.S. military loan program for small businesses in March of 2008. This program is seen as a way to help rebound a small portion of the economy in these times of desperate need. It provides a way for military service members and those who are leaving military careers to be able to start their own business and get off on the right foot without incurring huge debt that is involved with the process of starting or expanding a business.

Applicants of Patriot Express loans are assured of lower rates of interest and lending amounts that are higher than with traditional loans. This new loan program has been approved to be used in all 50 states in America. Applicants are guaranteed loan amounts up to $500,000 and a minimum loan amount of $150,000. Interest rates with this loan are between 2% and 5% which is the lowest of any business loans available.

The SBA guarantees that there are over $1 billion available every year for loans for businesses that are owned by veterans. 14% of all American businesses are owned by veterans. Steven Preston, the SBA Administrator stated that veterans make a big economic contribution  and have unique skills of leadership and technical ability, which make them great at business. This makes them perfect candidates for U.S. military business loans.

There is a program called the Military Reserve Economic Injury Disaster that helps military families that already own businesses. Loans in amounts up to $1.5 million are available. You can research both U.S. military loans and the Military Reserve economic injury disaster programs on the internet. There is a lot of information available about both of these SBA programs and what they can do for you or your family.

Reference Sites:
http://usgovinfo.about.com/od/smallbusiness/a/patriotloans.htm
http://www.zeromillion.com/financial-services/military-small-business-loan.html
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