Business Loans for Veterans
While the process of getting a business loan is full of decision points and pitfalls, the United States SBA does offer some special considerations for U.S. Military veterans. The SBA works with a variety of financial institutions across the country to help those who served in the military to obtain the funding they need to start a small business.
However, before you apply for this funding, take some time to learn more about the various options for veterans and the requirements for qualification.
VA Small Business Loans Explained
If you’re a former member of the military and you want to become your boss, chances are you will need some funding. While you can try to get a small business loan from a traditional lender, it’s important to understand that, as a veteran, you qualify for special funding from the SBA. These are commonly referred to as VA small business loans.
These are not offered by the Department of Veterans Affairs- they are handled instead by the SBA Office of Veteran’s Business Development. It offers a variety of options for:
Transitioning service members
Active duty service members
Dependents/survivors of any of the above
According to the SBA, during the fiscal year 2019, around $984 million in loans were approved to over 2,600 veterans.
These loans are provided by a bank or lending partner and require regular payments with interest to be made.
Types of VA Small Business Loans
Veterans have a variety of options when it comes to small business loans. This includes:
Standard 7(a) loans
Military Reservist Economic Injury Disaster Loan
Who Qualifies for VA Business Loans?
Since there are lots of options available to veterans, it’s important to note that requirements for funding vary based on several factors: type of loan, applicant’s credit score, as well as other factors.
However, the eligibility requirements specifically for the 7(a) loan program are as follows:
The business operates for profit
Engaged in or plan to do business in the United States or its territories
The business has an owner invested in equity
All other financial resources have been exhausted
If you are interested in learning more about business loans for veterans, contact Toluca Lake Capital. We can help you find the funding you need to start or expand your veteran-owned business.