Angel Investors

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Government & Community Assistance to Obtain Money

Patriot Express Loan Initiative

Financial Resources For Northwest & West Central Ohio Entrepreneurs


Purpose of Program

For veterans and members of the military community wanting to establish or expand small businesses.

Eligible Businesses

Eligible military community members include: 

  • Veterans
  • 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
  • The widowed spouse of a service member or veteran who died during service or of a service-connected disability

Eligible Use of Funds

Must used for an eligible purpose which includes a wide variety of general business purposes, including working capital, inventory, seasonal lines of credit, revolving lines of credit, machinery and equipment, furniture, fixtures, land and buildings (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions).

Loan Amounts

Loans are available up to $500,000 and qualify for SBA’s maximum guaranty of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000 up to $500,000.  For loans above $350,000, lenders are required to take all available collateral.

Repayment Term

Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed. However, maximum loan maturities have been established: 25 years for real estate and equipment (should not exceed life of equipment which is generally 5-10 years), and terms for a working capital or inventory loan should be appropriate to the borrower’s ability to repay up to 10 years.

Interest Rates

Patriot Express loans feature SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. 


To offset the costs of its loan programs to the taxpayer, SBA charges lenders a guaranty fee and a servicing fee for each loan approved and disbursed. The amount of the fees is based on the guaranty portion of the loans. The lender may charge the upfront guaranty fee to the borrower after the lender has paid the fee to SBA and has made the first disbursement of the loan. The lender's annual service fee to SBA cannot be charged to the borrower.

For loans of $150,000 or less, a 2 percent guaranty fee will be charged. Lenders are again permitted to retain 0.25 percent of the up-front guaranty fee on loans with a gross amount of $150,000 or less.

For loans more than $150,000 but up to and including $700,000, a 3 percent guaranty fee will be charged.

The annual on-going servicing fee for all 7(a) loans approved on or after October 1, 2007, shall be 0.550 percent of the outstanding balance of the guaranteed portion of the loan. The legislation provides for this fee to remain in effect for the term of the loan.


Collateral, Security

Each lender has its own lending and credit requirements. Generally, they require some type of collateral and personal guarantees of significant owners. The type and amount of collateral is determined by lender and government regulations, and risk characteristics of the loan. Collateral must have documented value (which may require third party appraisal) sufficient to protect the interest of the lender and the SBA in the event of loan default.


Participation Requirements

Additional Considerations

The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative. 

Program Funding Source

How to Apply

Interested businesses should apply through a participating lender. Your local SBA district office will have a listing of Patriot Express lenders in your area.

Links to Loan Application and/or Specific Information

The SBA has a web site that identifies required SBA forms and suggestions for information that should be included in your request. It is at

Small Business Administration
Columbus District Office
401 N. Front Street, Suite 200
Columbus, Ohio 43215

Go here for West Central Ohio SBA Participating Lenders

Useful Information

Interest Rate Links

Business Management Links

Glossary of Important Financial Terms You Should Understand

How To Prepare A Business Plan to Obtain Money

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