Here is a Small Business Interview to see
The following article is part of an interview with an SBA small business loan provider, related to the U.S. Patriot Express program. This program it’s aimed to veteran-owned ventures (veterans, active duty service members, their wives and widows), providing them with loans for an already existing businesses or a startup one. We’ve done this interview to get a real picture of how the program works and to know if it really benefits our veterans.
US Patriot Express Loan Program
Q. Greetings, the aim of this interview is to approach a little bit more to this program. I want to thank you in advance for the opportunity.
A. It’s a pleasure for me to do it.
Q. Let’s start with an introduction for people can know more about the subject. I want you to talk about the U.S. Patriot Express Initiative Loan Program. What is it exactly?
A. Well, everything started when George W. Bush was president, someone in his administration came up with the idea of a vet loan program for business owners. The funding comes from private lenders and banks that count on SBA licenses. The lenders are incentivized to make the loan because the 85% of the value of such loan is guaranteed by any default and will be reimbursed to them if such thing happens. I have to tell you, this makes a huge difference because it really motivates the lenders to actually give the loans.
Q. So the money doesn’t come directly from the VA or the Small Business Administration?
A. That’s right. The VA isn’t involved in loaning the money. But still, they are huge supporters of the program. What the SBA does is to directly loan taxpayers with money but just under its program against disaster, a program that prevents them from occurring. In this program the SBA approves the lenders and guarantees the defaults it may have. Private Banks and lenders are the ones who actually loan the veterans the money and not the VA.
Q. As it is called a SBA guaranteed loan program, that means that the approvals are guaranteed if you’re a veteran, right?
A. I wish it was like you say, but sadly that’s not the case. The fact is that the SBA guarantee assures the lender that they will get 85% of the loan they provided in case of default. It’s not the approvals that are guaranteed. If a lender grants you a small business loan and you don’t pay for it, the bank has to alert the Federal government and then they are the ones who will get paid 85% of the loan value.
Q. Thank you for taking your time to answer my questions.
A. My pleasure.