Small Business Loans for Veterans

Small Business Loans Guide for Veterans

Leaving the battlefield and returning to civilian life is a daunting transition except for the most organized veterans. Most veterans have a hard time returning to everyday employment, after losing their lives to defend our freedoms. Instead of taking orders from someone else, many of those individuals are undertaking entrepreneurial activities in the hope of developing and growing their own companies.

According to the Small Business Administration (SBA), US Armed Forces veterans own more than 2.52 million small businesses. That number is 9.1 percent of all U.S. firms. Veteran-owned companies collectively bear sales of $1.22 trillion per year and employ nearly 5.8 million people.

Like all other small business owners, veterans who want to start their own businesses need to find out how their operations are funded. Most of the veterans opt out of their own wallets to fund their companies. 59.4 Percent of experienced business owners start their companies with personal or family investments, compared to 57.3 percent of all business owners doing the same, according to the SBA.

However, not every veteran has enough personal capital to start his or her own company. In that end, 7.8 percent of veterans use bank loans or other financial instruments and 7.5 percent use their own credit cards to pay start-up expenses. But it’s very easy to find Small Business Loans for Veterans in the United States.

What is a loan for VA? What kinds of loans are provided directly to veterans?

As many other small business owners, experienced businessmen have in recent years struggled to obtain funding for their businesses as banks have tightened their lending criteria, signing off on fewer loans following the financial crisis of 2008-2009.

Having devoted their lives to preserving our way of life, veterans surely deserve to make their dreams come true. In that end, the federal government and other pro-veteran organizations have arisen to ensure vets are able to get the funds they need to develop and grow their businesses.

While the Veterans Administration (VA) does not administer them, loans explicitly earmarked for veterans are generally referred to as VA loans. The SBA and other pro-veteran organizations most usually provide private loans to veterans and their families.

Veteran’s Business Outreach Center (VBOC)

Various VBOCs are located throughout the US. Center has the purpose of providing training, counseling, mentoring and other services to help veterans start and run a company. They will help you find the best training programmes for your case, whether it’s Business Boots or some other programme. When you have a VBOC near you it will be your first stop.

Bunker In a Box

This is an independent company produced training programme. Bunker in a Box is made up of 14 missions which teach you how to start your own company. The program’s biggest asset is that the culture is composed of many accomplished businessmen from around the country. It’s a great place to get tips and maybe extend your network.

The Veterans’ Entrepreneurship Bootcamp (EBV)

The EBV gives veterans and their families an intense entrepreneurial boot camp, which accommodates disabled veterans. They say that 72 percent of their graduates end up starting their own company, making the program even more important if you feel you could use some responsibility. To veterans from post-9/11 the service is absolutely optional.

When to Get a Veteran Business Loan in 3 Steps

The measures to get veteran business loans are not too different from usually getting business loans. Lenders emphasize the same considerations, such as credit background, business time and business profits. This is all about waiting for the right time to apply for your loan application and putting the best foot forward.

Here’s how to apply for veteran business loans

Find Why You Need a Veteran Small Business Loan, It’s easy to say, “I need $50,000,” but many business lenders and veteran business lenders will want to know why you’re applying for that particular amount of money and what you’re going to use it for. Depending on how you plan to use the money, you may be eligible for one lender over another.

Strengthening past debt? Financing Two New Stores Expansion? Or to cover the labor expenses for the busy season? Specificity of why you need a veteran commercial loan is important.

Here at USA Funding Pros we cover all the above and more. Have the Loan Documentation in Order Once you find out why you need the money and how much you can actually afford. You’ll need time to arrange your credit documentation.

While the conditions for Small Business Loans for Veterans will definitely vary from lender to lender, almost all business lenders will want to see the following: the business bank statements, the past five years of personal and company tax returns, and main financial statements (such as a declaration of profit and loss). SBA loans need more paperwork and take longer to process.

Evaluate Your Loan Options and Apply

In almost every case the least expensive option will be the best choice for your company. Business owners dealing with credit continue only to qualify for higher interest rates, however you may not have too much flexibility if you’re in this situation, but you will get everything you need from start to finish with Startup Funding Pros.

Before accepting any loan bid, make sure that you thoroughly check your business loan agreement. Check the fine print for any penalties that might come with your loan and the credit term you agree to. Before entering into your loan, you want to be completely assured that it’s sustainable for your company (including fees) and the best repayment plan for you.