Veteran small business owners have special access to certain lenders and resources that are only available to veterans of the military. When you are a military vet looking to start your own small business, it’s possible to gain access to special financing designated specifically for the past or current members of the military and through beneficial small business loans get your business off to a great start.
As you are about to learn, there are different types of loans available to military veterans. There are loans for vets with bad credit scores, loans for vets with good credit scores, startup loans for veterans, veteran grants, and loans for veterans with active-duty employees. We will briefly discuss each of these loan types and when you read about them you can decide which is best for your personal situation.
According to Business Loans Made Easy, experts discussing veterans small business loans, “With the strict lending standards of banks today, getting a business loan is a major accomplishment for someone who is starting a new business.” This statement holds true for civilians and military veterans alike.
Bad Credit Small Business Loans For Veterans
There is a company named StreetShares that focuses on providing small business loans for veterans when their credit scores below 700. This online lender was actually founded by veterans and specifically designed for veterans looking for loans from $2000-$100,000. The available credit lines are from $5000-$1000.
To qualify for these loans, your credit score must be a minimum of 600, and you have to be a permanent resident or a United States citizen. Plus, your business needs an annual revenue of $25,000 and your business must be open for at least a year to qualify for a loan and at least two years to qualify for a credit line.
Good Credit Small Business Loans For Veterans
There are two popular types of loans for veterans with good credit. The first is called SBA Express and the second is called CA Loans.
The SBA loan program is perfect for veterans looking to start their own small business. In particular, the Express loan can lend veterans as much as $350,000 for seven years. They also let veterans know very quickly whether or not they qualify for the loan. They will get back to you within 36 hours or less.
Community Advantage Loans, CA Loans for short, are perfect for veterans because they’ll lend them as much is $250,000 and the terms are from 10 to 25 years.
Veteran Small Business Startup Loans
A popular small business startup loan for veterans is called Accion. This exceptional loan is an excellent choice for brand-new veteran businesses and startups.
The loan is made available from a nonprofit organization specializing in helping underserved businesses. And the nonprofit is committed to providing the funding needed for veterans when they aren’t typically eligible to acquire loans from other lenders.
Grants For Veterans Opening Small Businesses
As a veteran, you also potentially qualify for grants from the United States government. They have a website called BusinessUSA that shares information to let veterans know about government financing options, loans, and grants they might be eligible for. Check out the website to learn more.
Small Business Loans For Veterans with Employees On Active Duty
When a veteran employs active-duty members of the military, they might potentially qualify for SBA MREIDL loans. The full name is the SBA Military Reservist Economic Injury Disaster Loans, and if you qualify, you can get as much as $50,000 at a low 4% interest rate for a 30-year term.
As a veteran, consider any one of these loans to expand or start a small business after you’ve retired from the military.
For more information about loans here on Bit Rebels, click here!