[Federal Register Volume 75, Number 239 (Tuesday, December 14, 2010)]
[Notices]
[Page 77935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31323]


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SMALL BUSINESS ADMINISTRATION


Patriot Express Pilot Loan Initiative

AGENCY: U.S. Small Business Administration (SBA).

ACTION: Notice of extension of the Patriot Express Pilot Loan 
Initiative.

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SUMMARY: This notice extends the Patriot Express Pilot Loan Initiative 
in its current form through December 31, 2013. This pilot initiative, 
established in 2007, was designed to increase lending to small 
businesses owned by members of the military community. It is based on 
the SBA Express model which uses streamlined documentation but provides 
a higher SBA guaranty of 85 percent for loans of $150,000 or less and 
75 percent for loans greater than $150,000 up to $500,000.

DATES: The Patriot Express Pilot Loan Initiative is extended through 
December 31, 2013.

FOR FURTHER INFORMATION CONTACT: Grady B. Hedgespeth, Director, Office 
of Financial Assistance, U.S. Small Business Administration, 409 Third 
Street, SW., Washington, DC 20416; Telephone (202) 205-6490; 
[email protected].

SUPPLEMENTARY INFORMATION: The Patriot Express Pilot Loan Initiative 
was established in 2007 and was based on the Agency's SBA Express 
Program. Lenders approved for participation in Patriot Express are 
authorized to use the expedited loan processing procedures in place for 
SBA Express, in order to specifically support lending to small 
businesses owned by eligible members of the military community. To 
encourage lenders to make these loans, SBA provides its full 75-85 
percent guaranty, rather than the 50 percent guaranty the Agency 
provides under SBA Express. Also, the maximum loan amount under this 
pilot initiative is $500,000.
    On June 22, 2007, SBA published a notice in the Federal Register 
announcing the program. (72 FR 34501) Since the program was 
implemented, more than 6,800 Patriot Express loans have been approved. 
SBA believes it is premature to assess the results of this pilot 
initiative at this time because most of the loans in this pilot were 
made in the last two years and there has not been sufficient time to 
measure their performance. An extension of this pilot for an additional 
three years will allow SBA time to better evaluate the results of the 
program and determine whether changes need to be made.

    Authority:  15 U.S.C. 636(a)(25); 13 CFR 120.3.

Grady B. Hedgespeth,
Director, Office of Financial Assistance.
[FR Doc. 2010-31323 Filed 12-13-10; 8:45 am]
BILLING CODE 8025-01-P