When veterans come back from that battlefield life to their ordinary life, they find it difficult to start their own business because of the limited financing option.
Did you know that veterans own around 2.5 million of the businesses only in the US? Can imagine how huge this number would be on a global scale. All of these businesses lie under the category of small business administration.
Many financial institutions now offer loans to veterans, so they can also live a successful life by growing their own businesses. Here are some of the best business loans for veterans.
Military Economic Injury Loan
This loan is for veterans whose business got affected because they were on the duty to serve their country. If you are an active or former member of military reserve forces and your business is suffering because of your duty, then you can get a loan at only 4% interest from Military Reservists Economic Injury Disaster Loanprogram by SBA.
It is like an online auction marketplace. It allows the investor and entrepreneur connect directly to each other. Street Shares helps veterans get loan from a third party investor.
But before moving forward with the process, veterans have to go through the application process. You can get all the information from the website, and it approves loans as quickly as possible. It is one of the best source of loan for veterans that is non-government.
Veterans Business Funds
It’s a non-profit organization that provides loans to veterans based on donations they receive. These loans are also non-interest based to the extent allowed by law. But one cannot finance an entire loan through it, as it requires an owner’s equity along with the help of a financial institution.
Service-Disabled Veteran Owned Business Contracting Program
Another loan program by SBA is SDVOSBC that provides the opportunity to veterans to get government contracts. It offers jobs to veterans who didn’t get the chance to run a business they were on duty but they have the ability to run a successful business.
7- Eleven Veterans Franchising
If you have a veteran franchise, then you only have to pay 80% of the franchise fee and 65% of your financing will be arranged by 7-Eleven and through other sources. It is like you are getting an interest free loan.
Strivers & Hivers
You are only eligible to get this loan if you have passed out from military academy of US. It provides loans to a startup business that are owned and run by academy graduates like; Coast Guard, Annapolis, West Point, Air force, etc.
SBA Express Loan Program
You can get a loan of up to $350,000 through SBA’s Express Loan Program. Moreover, the guarantee fee will be waived off because of your services for the country.
How to Apply for the Loan?
It is the same as you are getting a business loan. You have to follow these three steps, and you can get the loan in no time.
The first step is to explain to the lenders why you need the loan. They would want to know why you need such a big amount and how are you going to use it. Based on this, they are going to consider you for the loan so the reason must be persuasive enough.
Next step would be to gather all the documents and make sure that you meet all the requirements; otherwise, your application may be rejected right away. Every lender has different requirements. Most lenders would require your business financials, bank statement, tax returns, balance sheet, and income statement.
The lender will Then evaluate your documents and decide whether you will be able to repay the loan on time or not.
The last step is to decide which option would be best for you in terms of interest and repayment. Once you have made a decision, fill out the application form. Make sure you properly read all the agreement and terms of the loan.