Small Business Loans For Veterans

Veterans are the backbone of a country. They spend their whole life defending the honor and sovereignty of their nation and after retirement or resignation, most veterans tend to start up a small business as their next chapter of life.

However, by the time their service ends, not every veteran has enough savings to start their own business/ This is why around 8% of veterans go through banks or financial lenders to get a financial loan or any kind of capital investment to kick start their business.

Fortunately, Capital For Business has helped numerous veteran business owners acquire easy and reliable small business loans to start up a venture.

If you’re a veteran looking for the same goal, you’ve come to the right place.

Let’s look at what you can do as a veteran with financial loans and the options and sources you have for small business loans as a veteran.

Successful Small Businesses Of Veterans

The most common business industries veterans tend to settle in after their services are:

Veterans own businesses in all industries, including

• Finance and insurance
• Utilities
• Transportation and warehousing
• Mining, quarrying, oil, and gas
• Professional, scientific, and technical services
• Manufacturing
• Wholesale trade
• Agriculture, forestry, and fishing
• Real estate

Are You Classified As A Veteran?

To be classified as a veteran and in order to qualify for reaping government or organizational benefits specified for veterans, you must follow one of the following cases:

• You’re a military veteran at a present time
• You’re a veteran who was disabled amidst service (Service Disabled Veteran)
• You’re an active member who’s currently participating in the TAP (Transition Assistance Program)

On the other hand, if you’re not a veteran yourself but are or were a spouse of a classified veteran, these are the qualifications you need to follow to qualify for veteran benefits:

• You’re currently a spouse for someone who’s a classified veteran following any of the above-mentioned cases
• You’re the spouse of a Reservist or a National Guard Member
• You’re a widowed spouse of a service member who passed away during service or who faced an injury or disability from their service

VA Loans – How To Get Them?

VA Loans are Veterans Administration loans, specified to help veterans establish businesses.

These loans are not administered by the Veterans Administration, however, they’re still referred to as VA loans as they’re only specified for veterans and their families.

To qualify for a VA loan, you should be the 51% owner of a business, following any of the following conditions:

• An ex-veteran
• A service-disabled veteran
• A TAP (Transition Assistance Program) military member
• A Reservist
• A member of the National Guard
• A spouse of any of the above
• A widowed spouse of a veteran who died or got injured as a result of their service

What Documents Do You Need To Qualify For A VA Loan?

For a VA loan application, your documentation would include certifications that classify you as a veteran and documentation relating to your business prospect that gives a lender confidence in investing in your business.

For the business part, you will need basic business information, financial information, your financial history (bank statements), etc.

While for the veteran classification, here are the documents you’ll need.

If your application does fail, unfortunately, your credit score can be affected. This is why, for better advice and preparation before heading for a VA Loan application, contact the experts at Capital For Business who can help you choose the right loan for you, get you prepared for the application, and enable quick and easy processing with a guarantee of approval.

SBA Small Business Loans For Veterans

The SBA (Small Business Administration) allows many veterans to apply for and acquire loans as an assistant to start their businesses.

These loans are backed and guaranteed by the government and often have easy requirements to qualify for.

Especially, when applying with Capital For Business, our expert team not only advises you on the best options for loans that suit your business needs but also helps in quick and easy approval of your loan applications.

Let’s look into the SBA small business loans for veterans that you can apply for.

Military Reservist Economic Injury Disaster Loans (MREIDL)

The MREIDL is reserved for businesses that are owned or employ veterans and fall in need of operational financial assistance when an essential owner or employee is called for active duty to the Reserves or the National Guard.

In this case, the business can apply for a loan that finances the operational facilities which will be aborted and halted due to the lack of a veteran employee or owner.

This loan can be acquired at a minimal interest rate with easy repayment methods and terms, however, does require collateral of $50,000. If you don’t have the collateral amount, the SBA will take as much as they can to keep it as collateral.

The loan application can only be processed when the business shows its failure to get a sufficient loan from other lenders i.e. banks.

You will also have to explain how your business will suffer and needs financial assistance due to the absence of the veteran employee/owner.

The maximum funding amount goes to $2 million, with a repayment period of up to 30 years.

SBA 7(a) Loans

The SBA 7(a) is a general loan that can help businesses in their short to medium-term projects.

With guarantees up to 85%, the SBA can offer loans to a maximum amount of $5 million.

Term lengths and interest rates vary.

SBA Express Loans

SBA Express Loans exist to help businesses get immediate cash for any financial emergencies. Veterans can get their loan application processed in less than 36 hours, with the amount in their hands within 30 days.

• The maximum funding amount is $350,000.

However, to count on an immediate basis, the SBA only guarantees up to 50% of the Express Loans.

SBA Microloans

SBA Microloans, as the name suggests, help veteran business owners get small amounts of loans for their short-term needs.

This is mainly applied for a financial emergency in the short run or to maintain a business’ working capital.

• The maximum funding amount of SBA Microloans is $50,000.

In this case, the business can apply for a loan that finances the operational facilities which will be aborted and halted due to the lack of a veteran employee or owner.

This loan can be acquired at a minimal interest rate with easy repayment methods and terms, however, does require collateral of $50,000. If you don’t have the collateral amount, the SBA will take as much as they can to keep it as collateral.

The loan application can only be processed when the business shows its failure to get a sufficient loan from other lenders i.e. banks.

You will also have to explain how your business will suffer and needs financial assistance due to the absence of the veteran employee/owner.

The maximum funding amount goes to $2 million, with a repayment period of up to 30 years.

Alternative Small Business Loans For Veterans With Low Credit Scores

Alternatively, if you’re a veteran who suffers from a bad credit score, you’re not locked out of financial assistance options.

Even though traditional lenders such as banks or the SBA do not allow low-credit veterans for many loans, Capital For Business offers veterans a plethora of other options that can help their business with financial assistance.

Here is what you can apply for with Capital For Business, even with a low credit score:

Equipment Financing

Equipment financing is the most favorable option for small businesses in need of the purchase of expensive machinery when starting their business journey up.

With this loan, you can acquire the whole purchase value of the machinery that you need which you can only spend on the specified equipment.

With Capital For Business, your veteran business can immediately apply and get your equipment financing applications processed easily with low-interest rates and an easy repayment term.

Short-Term Business Loans

Short Term Business Loans, as the name suggests, are the perfect fit for acquiring financial assistance for short-term projects.

With the help of Capital For Business, veteran businesses can acquire up to $500,000 in short-term business loans.

These will include minimal interest rates that make it feasible for your business and a repayment term of up to 18 months.

Business Line of Credit

The Business Line Of Credit is much like a Credit Card for a small business. This helps veteran-owned businesses be at ease with financial availability.

With this loan, your business can have a credit limit which you can take out money from on an ad hoc basis, while only being obliged to pay an interest rate for the amount that you withdraw.

The repayment terms involve regular easy payments and the credit limit is higher than traditional credit cards.

Merchant Cash Advance

A Merchant Cash Advance allows veteran-owned businesses to acquire loans against their future sales prospects.

If your business’s future sales are looking positive, you can apply for an advance loan beforehand where the repayment of the loan will be charged through a percentage of your future sales.

Contact Capital For Business for the best advice regarding financial assistance and loans for veteran-owned businesses.