If you’re a veteran considering starting your own business, you may be wondering if any special loan programs are available to help you along your journey.
The good news is that there are several small business loans specifically for veterans. This article will go over some of the most popular solutions and what you need to know to qualify.
Who Can Apply For Small Business Loans for Veterans?
To be eligible for most veterans small business loans, you must meet the following criteria:
- Be an honorably discharged veteran or active duty service member
- Be a qualifying widow or spouse
- Own to plan to start a small business in the U.S.
- Have good credit
Other requirements may vary depending on the lender.
What Are the Benefits of a Small Business Loans for Veterans?
There are several benefits attached to small business loans for veterans. Take a look at some of the most noteworthy advantages.
Lower Interest Rates
The Small Business Administration (SBA) backs a portion of these loans, protecting lenders and giving them the confidence to offer lower interest rates. This can help veterans who are starting or growing their businesses, as they can keep more of their hard-earned money instead of paying off high-interest rates.
A new initiative from the SBA removes all fees for loans up to $350,000. This benefit allows veterans starting their businesses to get a strong start and avoid some of the typical early stage hurdles.
No Collateral Needed
For many small business loans, collateral is oftentimes required to secure the loan. Fortunately, collateral isn’t always unnecessary with a small business loan for veterans. This advantage can help veterans who may not have enough assets on hand to use as collateral or who want to keep their businesses and personal finances separate.
What Information is Necessary to Apply for a Small Business Loan as a Veteran?
To apply for a small business loan as a veteran, you need to provide some basic information about yourself and your business, such as:
- Your name, address, date of birth, and Social Security number
- The name and address of your business
- The amount of money you need to borrow
- Your credit score
- Your business tax ID number
- Your business bank statements
- Your financial statements, such as bank statements, tax returns, etc.
This information is necessary to determine if you are eligible for a small business loan and, if so, how much you can borrow. The lender will also use this information to determine your interest rate and repayment terms.
How to Apply for a Small Business Loan as a Veteran
Once you have gathered your information, you can begin the application process for a small business loan as a veteran. The first step is to find a lender that offers loans to veterans. Many lenders take part in the SBA’s 7(a) loan program, a great source of funding for small businesses. You can use the SBA’s Lender Match tool to find a participating lender in your area.
Once you have found a lender, you’ll need to learn about their requirements and provide the necessary information. The lender will then evaluate your application and, if approved, will deliver a loan offer. If you accept the offer, you will need to sign a loan agreement and give the lender any additional documentation.
The Bottom Line
Starting a business can be difficult, but it’s also an opportunity to pave your way and create a successful venture. If you are a veteran considering starting your own business, check out the small business loans available to you.
With the help of a loan, you’ll be in a stronger position to get your business off the ground and on its way to success.