Veterans have the drive, dedication, and self-discipline required to succeed in the competitive business market. However, financing their own new businesses can be challenging. As many veterans venture into small businesses, federal programs have been put in place to assist them to achieve their goals. Therefore, you can access capital to start a small business if you served in the military. Learn more about business loans on this page.
Before taking a loan, however, it is essential that you consider all the possible options. There are many factors that will influence the choice of a business loan including your business history, credit score, financial health, and credit score. Before you apply for a business loan as a veteran, you need to be well prepared. There are several tips that can help you find a perfect loan option as a veteran. Some of the tips will include the following.
1. Learn about SBA
As a veteran, it is essential that you understand the Small Business Administration before you apply and how the loan would benefit your small business. SBA is government-sponsored to help small businesses. It can be tough for veterans when looking for business loans. This is because some veterans will have credit gaps due to deployments. They might lack some of the records required by credit unions.
SBA can, however, provide so much relief for the veterans. They can receive the funding they want through SBA. A VA SBA backed loan allows veterans to access low-interest loans with flexible terms. When you understand the application process, you will be in a better position to get the necessary funding for your new small business.
2. Understand the eligibility.
When planning to take a VA loan, you need to understand eligibility for such loans. Among those who would qualify for VA loans include veterans, active military personnel, current military window or spouse, as well as service-disabled veterans. In case you received a dishonorable discharge, you would not be qualified for VA loan programs. Click on this link for more details about business loans.
Also, reservists and National Guard members can also qualify for VA loan programs. However, at least 51% of the eligible business should be veteran-owned. Some businesses will, however, not be eligible such as gambling, pyramid schemes, and money lending businesses are not qualified.
3. Ensure your business is verified as veteran owned.
While there are many private and public resources for veteran small businesses, the owners are required to verify their businesses are veteran-owned. Today, a pre-qualification process is place to make the process faster. Click here to learn more: https://en.wikipedia.org/wiki/Business_loan.