According to a recent survey, the success rate of businesses owned by veterans is much higher than other businesses. Recognizing this fact, the government has made provisions that allow business loans for such people. The federal government not only offers startup capital but also loans for expansion, inventory, etc. Military reservists can also accrue them from the government at low lending rates. The Congress also enacted the Veterans Entrepreneurship and Small Business Development Act of 1999 to protect the businesses of reservists, when they were called for active duty. This act also has provisions that enable financial assistance for service-disabled veterans, who want to be entrepreneurs.
The Department of Veterans Affairs has also initiated the Center for Veterans Enterprise (CVE), which provides assistance to the ones looking for solutions for startup or business expansion. Private financial institutions also provide loans to such people, as statistics show that they are more likely to succeed in their business ventures. When taking one from the bank, ensure that your business proposal has all the requisite information.
Anyone who has started his own venture knows that it is a difficult task, especially if he has to take a loan to start it. Many veterans look to start their own business after retirement, and the government assists them in this endeavor. They can avail loans through the Small Business Administration (SBA) program, Patriot Express Pilot Loan, etc. Veterans, reservists, service-disabled ones, and even the spouses are eligible to apply for the same under these programs.
Under the Patriot Express Pilot Loan initiative, applicants can get up to USD 500,000, and also qualify for the SBA’s guarantee of up to 75 percent. For the amount less than 150,000, an applicant can get up to 85 percent guarantee. The interest rates generally range from 2.25 percent to 4.75 percent, depending on the period of the loan. You can get a list of lenders in your area from the nearest SBA district office.
CVE also provides assistance to them, and it has a lot of useful information on its website. It also has a helpline number, which you could call for your small queries, and it will direct you to the right source.
Some lenders also provide loans to people with bad credit, if they have a good financial track record for the last 12 months. Service-disabled veterans also get business financing, even if they have bad credit. Applicants need to be honoring their current financial obligations to stand a good chance of getting one with bad credit.
Private financial institutions also extend financial aid to them. These organizations help veterans, people who have been honorably discharged from their duties, as well as military personnel on active duty. Having a sound business plan, detailing the nature of your business, and a fair credit history will help you get the loan quickly.
The interest rates on these will be a little higher than those offered by government agencies. You can go through the Veterans Corporation website for details regarding funding a small business. There are several nonprofit organizations, which fund small businesses of such people.
If you are looking for a business loan, get hold of a directory of related groups and organization, as they will be better able to guide you. It is also a good idea to visit your local chamber of commerce to scour for funding programs.