Just What GAO Found
Patriot Express loans respected at about $703 million have actually defaulted at a greater price than loans beneath the Small Business Administration’s (SBA) other associated loan guarantee programs, and losings for Patriot Express have surpassed its earnings. Except for loans authorized in 2007, Patriot Express loans have actually defaulted at an increased price than loans made under SBA’s primary 7(a program that is loans made under SBA’s structured loan guarantee program (SBA Express). The Patriot Express program’s general standard price ended up being notably greater for smaller loans, particularly for loans below $25,000 (20 per cent). Also, one loan provider taken into account a lot more than 64 % of those smaller loans and skilled higher standard prices compared to the remaining loan providers. From 2007 through 2012, losings when you look at the Patriot Express system surpassed earnings by $31.1 million ( perhaps perhaps not accounting for future cost profits or funds recovered from loans in standard).
Chosen borrowers and loan providers, along with veteran solution companies GAO came across with, reported different advantages and challenges to your Patriot Express system, but SBA has yet to gauge the result with this pilot system on eligible people of the army community.