Minority Lending

Small business is America’s most powerful engine of opportunity and economic growth. For millions of Americans, starting a business is the best opportunity to turn a dream into reality.

However, barriers to opportunity still prevent some individuals from taking full advantage of the opportunity to own a small business. By expanding the ability for more Americans to realize their business ownership dreams, the foundation of the economy will be further diversified and strengthened. The SBA seeks to foster an environment where small businesses can overcome barriers to economic opportunity in all areas of business development, including government contracting. This assistance will provide greater economic opportunity that will further contribute to the growth of the American economy.

SBA strives to reach those sectors of the population currently underserved by its programs, including ethnic populations, women, veterans, and both urban and rural businesses. The following resources offer opportunities and assistance.

The Office of Women’s Business Ownership (OWBO) exists to establish and oversee a network of Women’s Business Centers (WBC) throughout the United States and its territories. Through the management and technical assistance provided by the WBC, entrepreneurs, especially women who are economically or socially disadvantaged, are offered comprehensive training and counseling on a vast array of topics in many languages to help them start and grow their own businesses.

Patriot Express Program / Patriot Express Pilot Loan Initiative

More than 14% of businesses in America are owned by Veterans and the SBA guarantees more than $1 billion annually in loans for vet-owned business. Each year the SBA assists more than 100,000 vets, service-disable vets and Reserve Component members.

Entrepreneurship can be the key to owning your future. The U.S. Small Business Admin and its resource partners have that covered with everything from counseling and training to loans, contracting and disaster recovery.

Developed in June 2007, the Patriot Express SBA’s Patriot Express Initiative has new and enhanced programs and services for veterans and members of the military community wanting to establish or expand small businesses. Eligible military community members include:
• Veterans
• Service-disabled vets
• Active-duty service member’s 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

The new PE loan is offered by SBA’s network of participating lenders nationwide and features the fastest turnaround time for loan approvals. Loans are available up to $500k and qualify for the SBA’s maximum guaranty of up to 90% for loans of $150 or less and up to 75% for loans over $150 up to $500k. For loans in the range of $350k lenders are required to take all available collateral.

The PE loan can be used for most business purposes including start up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.

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

The U.S. Small Business Administration has announced the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small 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

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