How to Apply for a VA Business Loan

By Deardra Green-Campbell

If you are an emerging or existing entrepreneur and also a veteran, service-disabled veteran or other eligible active-duty service member, spouse or widow, you might qualify for a business loan through the U.S. Small Business Administration's Patriot Express Loan Program. Applicants receive expedited processing times and, if approved, can receive financing up to $500,000 for a variety of business uses.

Visit SBA's Patriot Express website. You can get an overview of the loan program, including eligibility criteria, maximum loan values and typical interest rates (see Resources).

Review the Program Guide from the Patriot Express website. Although this document is targeted to SBA lenders, it will provide you with more detailed Patriot Express information, such as loan terms and conditions and the documentation you will be required to provide to the lender to verify your military status and, therefore, your eligibility for the loan program. It will also provide you with general guidance that can help you complete the Patriot Express loan application forms package.

Review the checklist. To help ensure you submit all of the required documentation, SBA provides a checklist of all paperwork the lender will need to process your Patriot Express loan application (see Resources).

Download and complete the required financial assistance forms (see Resources). According to the Program Guide and checklist, you will need to complete several documents, including Form 4 (Application for Business Loan), Form 413 (Personal Financial Statement), Form 912 (Statement of Personal History) and Form 1919 (SBA Express and Community Express Borrower Information). You might also be required to submit financial statements for your business, including a balance sheet and financial projections. If you do not already have these documents, facsimiles are available on SBA's Financial Assistance Forms site page. Depending on the circumstances, you might also be required to complete additional documents, including Form 159 (Fee Disclosure Form and Compensation Agreement) and Form 601 (Agreement of Compliance).

Identify and contact a lender. SBA is not a direct lender. Instead, the agency guarantees its authorized lenders against default on loans they make to their clients. To apply for a Patriot Express loan, you will need to submit your application to a financial institution that is a part of SBA's lending network. You can find a list of participating Patriot Express lenders in your area by accessing SBA's Local Resources website (see Resources) and choosing the applicable district office.

By law, one condition of SBA's loan guarantee is that you have been unable to either obtain a loan under "reasonable" terms from, or have been declined by, a private lender -- for example, a bank. In order to apply for a Patriot Express loan, you must therefore first attempt to obtain a loan elsewhere.

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