Monday, December 30, 2013

Military Veteran families can still get business loans

Veterans lose one and gain one, maybe
Herald Tribune
Published: Monday, December 30, 2013

It reads like a bad novel, but I can't put down.

I know who the heroes are, but I'm not sure if there is a villain. Furthermore, it appears that the heroes are becoming victims, and the outcome is uncertain.

The story begins on June 22, 2007, when the U.S. Small Business Administration launched its Patriot Express Pilot Initiative. With much hoopla, SBA said it would help finance small businesses for our heroes, the warriors returning from the wars in Afghanistan and Iraq.

The loan program also includes veterans, their spouses, widows, widowers and still enlisted military transitioning to civilian life. Any company that is at least 51 percent owned by the targeted groups can apply for up to $500,000 to start, expand or buy a small business.

Just like with all SBA-guaranteed loans, approved banks and non-bank lenders make the loans using their own money. In the event of default, the agency agrees to reimburse the guaranteed amount, as long as the bank follows the agency's rules.
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