How To Successfully Apply For A Sba Patriot Express Loan

It is hard enough to get a lender to show an interest in your veteran-owned business and seriously consider a loan application. But when you get miraculously to that point in life, what are the factors that make the most genuine difference? Are there any tips or secrets that I should keep in mind before applying? In this, the third in series of articles, we will discuss some of the factors that creep into the mind of a banker when making that final decision. In this article we will discuss the experience of the principals in the industry.

These are important considerations because you want to maximize your chances of getting a small business loan. Fortunately there is a program taylor-made to your veteran own business known as the U.S. Patriot Express Initiative. These are unsecured loans usually in the range of $5,000 to $25,000 with an interest rate of 7 ¾. Knowing which factors go into the decision-making will clearly benefit your application.

It goes without saying that industry experience can be quite a positive influence. Being in the trenches and not afraid to show your battle scars, you have a better idea of how not to make the mistakes of your unsuccessful competitors.

We are talking about the experience in the same basic industry as your current business. Include years working as an employee for someone else and years owning the business.

Example. If you worked for someone else for 5 years and have been in business for 10 years, the total industry experience would be 15. Add together the experience of all persons having a 20% or more interest in the business (for example, 50% owner #1 has 10 years and 50% owner #2 has 15 years--total is 25 years).

Fortunately, industry experience is broadly defined.

Example: Tom worked as a customer service/sales representative for a cell phone company for just over five years. He was at the counter daily and dealt continuously with retail customers. He has now opened a retail wine shop and also deals directly with customers. He can use those 5 years.

Make sure you include the experience of all management level employees. Assume Joe is the 100% owner and has 10 years experience. His manager also has 10 years of experience. The total experience is 20 Years. In the blank space at the bottom of the page put in: "Includes manager's experience for a total of 10 years."

Don't neglect the experience with family owned businesses or working with little or no compensation.

Example: Sam work from age 18 to 21 in his father's lumberyard. After getting out the army, he opened up his own lumber supply company has been doing so for 10 years. Total industry experience: 13 years.

Surprisingly, you can also include work for no compensation.

Example: Susan worked for five years with her aunt's interior design business without compensation. Count this time.

All in all, statistics tell us you have a better chance of success if you have experience under your belt. Capitalize on that simple fact and punctuate it when describing your business with a potential banker. Who knows, maybe they will listen this time.