Here is another option to try for your custom patches. Many of the higher-end sewing machines can do embroidery. You just program in the design you want, and it will embroider the design for you. It may be complicated to do multiple colors, but it is possible.
I know several people who have machines capable of doing a custom embroidered logo. Many of whom would probably do a small quantity for free. You would just have to buy the blank patch.
Eagle Scout 1987
OA Vigil Honor 1986
Fox - WE7-590-05-2
Currently - Troop/Team/Crew Advancement Chair & Dist Webmaster
Previously - SM, MC, CM, ACM, ADL, ASM, COR, Dist Camp Chair, PL, SPL, Scribe, Songleader, JASM, OA Chapter Officer, ...