he process of obtaining a small business loan is a complicated one. However, military veterans have access to special programs through the United States SBA. Before you decide to pursue funding to grow your small business, it’s important to understand your options and the requirements for qualification.
VA Small Business Loan Explained
As a former member interested in starting a business, you are going to need some business funding. While you may be able to obtain funding through a traditional lender, you also have access to VA small business loans through the SBA. The Department of Veteran’s Affairs has nothing to do with these small business loans.
Just like traditional funding, these loans are provided by a lending partner and require repayment with interest. The difference is the SBA works with lenders to establish guidelines to reduce risk to the lender. This typically means lower interest rates and longer terms.
Types of VA Small Business Loans
There are several options available for veterans who are interested in a small business loan, including:
- Standard 7(a) loans
- Military Reservist Economic Injury Disaster Loans
Qualifications for VA Business Loans
The qualification requirements vary based on the loan type, personal credit score of the applicant, and other factors. The basic requirements for the 7(a) loan program are:
- Business exists for profit
- Engaged in/propose to do business in the United States or it’s territories
- Business owners have invested equity
- Other alternatives have been exhausted
Other Financing Options for Veteran Business Owners
If the above options do not match your needs, there are other programs available for veteran business owners, including:
- Street Shares
- Service-Disabled Veteran-Owned Small Business Program
- Hivers & Strivers
Resources for Veteran Business Owners
If you plan to establish your own business, there are several resources available to help, including the following:
- National Veteran-Owned Business Association
- Regional Business Associations
- Veterans Business Outreach Centers
- American Corporate Sponsors
- Entrepreneurship Bootcamps
Do You Need Finance Options for Business Growth
If you are a United States military veteran interested in starting or growing your small business, you have options. Contact Abundant Wealth Financial to learn more about these options and more.