Solutions for Community Express borrowers:
The recent CAP imposed by the federal government regarding the Community Express Loan program has caused much anger and frustration to business owners. Business owners feel cheated in not being able to secure capital for their business through the SBA. Most of our clients have asked us how the SBA claims to be a small business advocate if they are not even able to guarantee a $5,000 loan. Our answer to that question is, the SBA is not at fault here. Just like how we have rules in everything else in life, there are rules which the SBA has to comply with. The audit is simply a rule the SBA has to follow to ensure the efficiency of the program.
So what is the SOLUTION?
There is no way around the CAP. However the SBA continues to guarantee loans under the PATRIOT EXPRESS loan program. Those of you who don’t know the details of this program, its quite simple, First, it is set up exactly like the Community Express loan program. The same application is used minus the Technical Assistance form, which is not required under this program as of yet. Secondly it is only available to the following:
o Service-disabled veterans
o Active-duty service members eligible for the military’s Transition Assistance Program
o Reservists and National Guard members
o Current spouses of any of the above
o The widowed spouse of a service member or veteran who died during service or of a service-connected disability
We are still able to pre-qualify clients under both programs; however the only loans which are being funded right now are the Patriot Express loans. Typical funding time is only 5 days!!! If you fall under one of the categories above or you know of someone who does, please contact us and we will be more than happy to go over the details with you.