Veteran Shares Steps to Obtaining SBA Patriot Express Loan

Phoenix, AZ – There may never be a better time to start or grow a small business for veterans.  Roseann Higgins, a U.S. Navy veteran, entrepreneur and business owner received a Patriot Express loan recently and states, “Some of my associates joked that the loans are approved so fast, it’s like going through the drive-thru! I really wasn’t optimistic when I filled out my loan application, but after talking with the lender, my hopes soared.”

In an economy where it’s difficult to find anyone to lend money to small businesses, veterans are definitely finding the Patriot Express Loan a pleasant surprise. Just knowing it’s a Federal Government agency, most small business owners assume anything that goes in and out of the Federal Government will require a ton of paperwork. While there is paperwork involved, it’s not nearly as extensive as applying for regular bank loans.

Who is eligible for the Patriot Express Loan?

• Veterans (Navy, Air Force, Army, Marine Corps, Coast Guard and National Guard)
• Service-disabled veterans
• Active-duty service members participating in 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

Patriot Express loans are available for up to $500,000. Higgins only wanted a loan to help fund two new blogs and a new Web TV show in development and to launch the soon-to-be-renamed Entrepreneurs’ Forum and Women’s Power Lunches. “A lot of this can be accomplished through elbow grease and help from friends,” she says.  “To create the podcast, I needed cameras, editing software, computers and equipment.”

The Patriot Express loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases, according to the SBA website. The Patriot Express Pilot Loan Initiative will operate through December 31, 2010, after which the SBA will evaluate its performance and make a decision whether to modify and/or continue the initiative.

Higgins said knowing her game plan may have helped expedite the loan process. ”They’re taking a risk in lending you money. I came prepared. That’s the military way. Always ready,” she added. 

Knowing that most small businesses fail in the first five years, having a business for fourteen years may have assisted in showing resilience and ability to repay in today’s economy. Higgins’ company, SPIES, is a unique business in a niche that is growing.

Since starting SPIES (Single Professional Introductions for the Especially Selective), she has attended over 6,000 events in her searches on behalf of very eligible clientele. Higgins reports a 95% success rate, hundreds of relationships and 63 weddings. “Over forty people have fallen in love with the first person I’ve found for them!” Higgins added. The Navy definitely teaches attention to detail and to be mission oriented.

While the loan application does not ask for earnings statements, tax returns or proof of income, it does ask for estimated monthly and annual gross income. They require social security number, which is likely used to assess ability to repay the Patriot Express Loan and to determine the dollar amount of the loan. To qualify for the PELI, a business must be at least 51% veteran-owned (or meet the above SBA criteria with 51%) and it must be indicated in writing on the application.

The application requires a photocopy of a Certificate of Release or Discharge from Active Duty (DD-214) and a cancelled business check for electronic funds transfer when the loan is approved and funded.

Anyone starting a new business can register a unique trade name with the Secretary of State and present the trade name document at a bank to open a business checking account. “That could take all of an hour,” Higgins stated, recalling her own experience. However, she recommends carefully selecting a name that will stand the test of time before investing in marketing dollars on someone else’s name, especially if the business is to expand out-of-state or globally.

Higgins learned about the loan from veteran Peter Burns, founder of eFactory, an entrepreneur development network (www.clubefactory.com), where she is a member. He had just established a relationship with Sue Malone, a veteran-friendly lender and founder of Strategies for Small Business and was offering contacts for his veteran members. Knowing Higgins was seeking funding; Burns immediately picked up the phone to and put Higgins on the line with the lender.

Sue Malone’s goal is to provide 5,000 SBA Patriot Express Loans to veterans. For loan and contact information, visit www.strategiesforsmallbusiness.com. Malone’s office is in Walnut Creek, CA but since it is a federal program, it didn’t matter where I applied, Higgins said.  Veterans who already have a relationship with a lender may want to check with their local bank.

The SBA website also has Patriot Express Loan information. It’s faster to contact the lender, but additional support is definitely available through visiting the SBA office. “They want to provide every small business with resources to grow,” Higgins said.  The SBA has Veterans’ business development officers in district offices in every state and territory to provide military members full access to the SBA’s range of programs and services.

Higgins has been individually sharing her story with Veterans via social media. Her final piece of advice, “Don’t get into debt if you don’t have to.”

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