Qualifying for the SBA Loan Patriot Express Pilot Program with Bad Credit

To qualify for the SBA Loan Patriot Express Program while having bad credit requires overcoming five common hurdles that affect all bad credit business loan applications. These hurdles are best summarized by the five C's of credit factoring, each of which can be found on the SBA website. These are capacity, capital, collateral, conditions and character, which lenders will investigate in order to find out whether the veteran borrower can feasibly repay the SBA loan being applied for. Fortunately for the veteran borrower, the patriot express loan program maintains a number of policies that slightly alter the terms under which these conditions are considered.

Performing Your Own Credit Check

One of the most efficient ways to check the viability of a bad credit small business loan application before you even apply is to first fill out the "Checklist for Starting a Business"  and spend time working through the "Small Business Startup Guide", both of which can be found on the SBA loan website at www.sba.gov/smallbusinessplanner/plan/getready/index.html. These will, in essence, be a way of self-checking the five C's of credit factoring that lenders and the SBA loan program will be investigating.

The Five C's Of Credit Factoring

Fortunately for veteran borrowers, there is no one factor that determines the viability of their credit. Specifically, this is because of certain conditions and provisos attached to the patriot express SBA loan program which eliminate the need for certain conditions that are normally considered necessary for other loans. Those conditions will be distinguish which might alter the viability of a small business loan application under the SBA loan patriot express program.

Your capacity to repay the loan will be considered and is not affected by any patriot express conditions. Lenders will attempt to determine the cash flow of your business, the length and schedule of the repayment period, and your payment history. They will also consider contingent sources of repayment such as collateral.

Your capital will be examined and is another unaffected factor by patriot express standards. This is the money that you have personally invested in the business. The more personal risk involved for you, the more confident lenders will be that the loan will be used wisely.

Your collateral will be reviewed as a possible contingent source of repayment. This is a decidedly affected factor under SBA loan program conditions. As always, collateral can be either business or personal assets. However, if you are applying for a loan of $25,000 or less, then no collateral is required. For all loans between $25,000 and $350,000, lenders are encouraged to use their existing terms and conditions regarding collateral needed. Therefore, it would be wise to shop around for lenders whose collateral conditions are in your favor.

Your conditions will be considered. Conditions refer to the purpose of the loan, whether it is intended for acquiring property, inventory or the like. The SBA loan patriot express program allows for the widest possible number of purposes available so that very little will be considered out of bounds.

Finally, your character will be examined, which for patriot express loan program applicants means, at the very least, requiring honorable discharge papers in the form of a DD 214. This is the most subjective aspect of the application process and is when the SBA and lenders size you up personally to determine whether or not you are trustworthy. They will consider your education, both your personal and work experience and the quality of your references.