VA Business Loan

Veterans Administration Business Loans: Need money to Start your Business?

Are you Active Military or a Veteran? In the National Guard or a Reservist?  Perhaps a Service-disabled Veteran? The current spouse of any of the preceding? Are you a widowed spouse of a Veteran lost while on active duty? Firstly, Your Business Mentor Ray thanks you and your families for your support of our freedoms and your service to the country.

If the answer is yes to any of these questions – then you may qualify for a Veterans program called the; Patriot Express Pilot Loan Initiative. This program is designed to help active military and veterans to start up a new business or even expand an existing business.

The program is listed as a VA business loan program – or a Veterans Administration Business Loan program, however, it is administered by the Small Business Administration or SBA.gov under their 7A SBAExpress program.

The good news for Active Military, Veterans and spouses is that the program has much higher limits than the standard SBA small business loan programs. If you qualify you will be given preferential treatment.

So How Do I apply for a VA Business Loan?

1. Get the phone number of the closest local SBA office in your city or state. Or visit this page to find a local SBA District Office.
2. Tell them that you want to apply for the VA business loan program called the “Patriot Express Pilot Loan Initiative”. They will ask you the qualifying questions I have listed above. From there you will get the VA business loan application forms sent to you.
3. Carefully complete the loan application. Make it complete and accurate. If you have questions call the local SBA office back for answers. Be sure to attach any additional documents requested in the application. You can check out the this page on the SBA.gov website for more details.
4. Mail or deliver you application and then wait two weeks. You can then call the Small Business Administration (SBA) at 1-800-827-5722 to check on the status of the application.

How much Money can I get from the VA Business Loan Program?

The Patriot Express Pilot Loan Initiative program has a maximum loan of $500,000. The interest rate is variable and can range from 2.25 percent to 4.75 percent over the current prime rate. The maximum limit of $500,000 is much higher than the $350,000 maximum for non-military and non-veterans under the standard SBAexpress program.

These VA Business loans for active military and veterans are offered at the lowest interest rates of any SBA program loans. Higher Limits and lowest interest rates are one way to say … thanks for your service!

What can the loan money be used for?

The possible uses of the loan proceeds are many. This flexibility makes it easier to qualify and to make sure your application is truly addressing your business working capital or investment capital needs.

According to the SBA.gov website the Patriot Express loan proceeds can be used as follows:

• Start up costs
• Equipment purchases
• Business-occupied real-estate purchases
• Inventory
• Infusing working capital
• Managing your business
• Expansion
• Preparing your business for the possibility of your deployment
• Setting up to sell goods and services to the government
• Recovery from declared disasters.

This program provides for loan guarantees from the SBA to the participant lender or the funding bank on the loans approved. There are limits each year to how the SBA can guarantee so timing of your application is important. As much as 85% of the amount of the loan financing can be guaranteed by the SBA under the Patriot Express loan program.

It is important to note that start-up and existing businesses can apply for the VA business loan program.

Your comments and questions on the VA Business Loan program are welcomed.