ALEXANDRIA, Va. — The early success of the Small Business Administration's Patriot Express Loan initiative is good on a number of fronts for credit unions, NCUA Board Member Gigi Hyland said.
According to recent statistics released by SBA, the Patriot Express Loan initiative is gaining momentum since being launched four months ago. Over 500 SBA guaranteed loans amounting to $51 million, with an average loan amount of nearly $102,000, have been awarded to those serving in the military community.
Hyland said the program is an example of both the positive outcomes possible when NCUA and other federal agencies collaborate, as well as the opportunities available to credit unions from federal outreach programs. At the end of October, 40 credit unions had signed on to become Patriot Express lenders, according to SBA.
Patriot Express is based on the SBA Express Program, but with enhanced guaranty and interest rate characteristics. 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 secure all available collateral to back the loan and may obtain collateral for smaller loans depending upon individual bank requirements.
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