Getting an SBA loan is a great way to start your own business. Even if you already have a business, the Small Business Administration can help get you a loan that can grow your existing business. Your options with an SBA loan are limitless and they can benefit you in a number of ways. One great program that the SBA has is the Patriot Express Loan Initiative. This program was designed to assist active military and veterans get the loans that they needs at great rates. If you want to apply for the SBA program with bad credit, you may run into some problems. While it can be challenging, there are a few ways that you can get approved for an SBA Patriot Express Loan even with questionable credit. Here are a few things to consider on the matter.
What is the SBA Patriot Express Pilot Program?
In order to determine if you even want to apply for the SBA Patriot Express Loan program with bad credit, you need to know what it is. First, to get this loan you have to be involved in the military. The military person applying for the loan has to own at least 51% of the company. This program offers some of the best rates available for business loans and they will stand behind the loan for you. The program provides loans up to $500,000 for start up, expansion, equipment, real estate purchase or any number of other circumstances.
Try On Your Own
Even if you think that you have bad credit, you may be surprised when you apply for an SBA loan. Everyone thinks that their credit is worse than it really is. The great thing about an SBA loan is that the SBA is backing the loan, they guarantee up to 50% of the loan for you, in the event of default. This lowers the risk for the bank and it improves your chances of getting approved. Even if your credit is not that great, the SBA increases your odds of getting approved. The bank will often approve those with questionable credit simply because it is an SBA loan.
Get a Partner
If the lender determines that your credit is unacceptable and you cannot be approved on your own, you can try taking on a partner. You will still have to be the majority owner if you were in the military. However, having a partner will make the lender look at their credit score in addition to yours. If you were on the borderline of being approved, a partner with a great credit score could make all the difference in the world. Usually this will be enough to help get your application approved and get you the money you need. be sure that the terms of your partnership are spelled out in a contract so there are no misunderstandings.