Forums: Discussions for entrepreneurs and small business.

I'm in the process of applying for the patriot express program, still building a nice binder to hand over to the branch manager and SBA division that I'm dealing with since it's an existing business and I have plenty of info for them beyond a basic business plan and proforma projections.

Just based off of a preliminary conversation with the branch manager and a conference call with the SBA guys they seem pretty high on it. They mentioned that instead of a term loan for the entire $150,000 I'm looking for they could use the Patriot Expresses revolving line of credit feature for the majority of the working capital I'm looking for, and a much smaller amount as a term loan for the refinancing of credit and moderate buy in to the business that I need.

I'll check back when I hear from them. Luckily I went to an SBDC councelor at an area university before I did anything else and he was able to print off a report for me that included a couple of lenders on it that had approved Patriot Express loans for the previous month. Still, I ran into some of what others have mentioned in this thread on the first couple of visits that I made to banks. The people in the office had no idea about anything related to SBA loans in general, let alone the new Patriot Express program.

With a 90% guaranty from the SBA and no where near the normal paperwork requirement, I'm not sure why more banks wouldn't know about this program. From what I've read the volume being approved in terms of SBA loans is way up and applications are no where near back to standard levels, so now is really a good time to be investigating these funding programs. Wish me luck, and I'll check back in when I get an answer!

Hello,

I have actually applied for a Patriot Express Loan and will let you all know how it goes.  I am a bit skeptical though, as my fears are based around the lender and not the loan program itself.  The bank I applied with noted that they worked a recent Patriot Express Loan with another veteran, but the SBA came back and noted that he had to provide at least 50% of the required cash for his start up.  I dont know about you, but having to inject 50% does not present much of a benefit to me.  I might be better off applying for a regular business loan.  The bottom line is that banks are still gun shy for lending, but it does not help when the SBA and Banks are not on the same page.

I have searched all over for a list of lenders that provide this loan. The best I could find was one from 2007, but the only bank within 2 hours that was on the list no longer provides it. I am sure a more up to date list must have another lender that might provide it. Does anyone have a direct link to a list? I have searched the link posted previously to SBA website, but I cant find on there where a list of lenders would be.

I don't think the Patriot Express Loan program really exists.  When you look for lenders they are very difficult to find and when you do find one, they don't seem to know anything about the program.  The comment above where the gentleman references having to put up $25,000 to get a $50,000 loan is a good example of what I am talking about.

My business partner and I own a 51%-49% S-corp, we are both disabled vets. We applied to Wells Fargo in an attempt to get a Patriot Express loan (line of credit). We were told they were not part of the program regardless of what the SBA says. We have 795 credit score and 2 years in business (no profits generated). We were denied due to lack of history with the bank. We found out that one of our good friends was the head of Business lending for Wells in LA! She confided that the denial was BS & it was their way of not lending to anyone, but still be able to say they were!

I have personally found almost all institutions in Southern California claimed as SBA Patriot Express lenders are not actually following the program guidelines, or even admitting to being part of the program! Good luck to anyone who gets this mythical loan.

Right after posting the above reply, I found out from our friend that the SBA has a huge reputation for denying the guaranty on their loans. This is why most institutions won't play nice with the program! SBA oversight is the only answer... Good luck again!

I have presented a solid Startup Business Plan to two different banks for consideration of an SBA Patriot Express Loan and have been shot down.  I can not even get the bank to submit the loan package to the SBA. 

The problem with the program is the banks. Even with a 90% guarantee, the banks I have applied to will not take the risk on a Start-up.

Loan request=$150k, SBA Guarantee=$135k, My investment=$20k

Bank 1: Bank wanted Lien on my house for $150k or no deal

Bank 2: Bank determined my projected salary from the business $40k, will not be enough to pay all of my home expenses(mortgage, vehicle, etc.) if my wife dies. (although we have life insurance to pay everything off) 

I asked the regional SBA office to send me a report, listing the SBA Patriot Express Loans that have been approved and they said that they don't break it apart by the type of SBA loans.

As a Veteran and Patriot, I am not happy with this program. I have talked to a few other Veterans and they have had no sucess with this program.

I can only hope that the SBA or VA monitor sites like this and will light a fire under the banks assets.

I have not given up as there are more banks to try, I will updateyou as I progress/regress.

I looked into the SBA Patriot Loan program, and I spoke to my Score Counselor about the program. My Counselor had no idea what I was talking about, so I did some checking around with some of the local banks that are listed as participating lending institutions and none of them said they have any experience with this program. (Weird)

I was denied an SBA Patriot Express Loan by the BANK for $150k because of two things:

1. Startup - very risky need lots of collateral

2. Collateral - although 90% guarantee=$135k which makes the risk to the bank=$15k, my equity in my house=$40k which the bank says isnt't enough.

The bank said I can do the following:

A. Have someone with enough collateral to co-sign.

B. Have someone with enough collateral to take an equity position.

C. Generate more collateral.

I will keep you informed when and if this moves forward.

I sent an email to the SBA advocate complaining about the program but haven't heard back.

Good luck all, don't give up.

I have spent all morning calling every bank listed as a SBA Patriot Express lender in the state of New Mexico.  It seems they 1. don't know what I am talking about. 2. Used to participate in the program, but not any more. 3. Have published a number for a voice mail box for the program, that is full, and hangs up. 4. don't do loans less than $100,000. 5. Advertise the program on their website, but still don't participate.  Wells Fargo wants me to put up $50,000 to lend $48,000.  I am glad I didn't give them my ssn over the phone!  I am still waiting on return calls from 3 banks,  I don't have much hope for that though.