When most service members retire, they have to find other ways to earn a living. For most, they will choose to start their own businesses. The only problem is that most of them hardly have the capital needed to start a business. Fortunately, by virtue of being a veteran, you can access special funding from the SBA called VA small business loans.
What Is a VA Business Loan?
A veterans business loan is often handled by the US SBA office. The organization has a loan program that helps veterans, active-duty service members, service-disabled veterans, reservists, and transitioning service members. So if you are looking to be your own boss, consider VA small business loans handled by the SBA.
What Types of VA Small Business Loans Are Available?
The SBA has a number of business lending programs that veterans can access. They are as mentioned below.
Standard 7(a) loans
Standard 7(a) loans can cover a variety of small business needs. Veterans can borrow as much as $5 million. However, this loan is for small businesses that have already established themselves. Most entrepreneurs take it for needs like real estate or working capital. If you are just starting, you might have to look for other ways to get working capital. This loan comes with low-interest rates over a long repayment period.
MREIDL
This is another veterans business loan to consider. If you were already a small business owner and later called back into active duty, you may qualify for the Military Reservist Economic Injury Disaster Loan. This loan is meant to provide financial assistance to essential workers if they are called back to active duty. The funding gives the business additional cash flow until one returns from a tour.
Microloans
The SBA also gives microloans to business owners that don’t qualify for other loan options. These loans tend to be less, just as the name suggests. The maximum amount is $50,000. This type of loan will also require collateral and business plan and financial projections.
If you are a veteran and are ready to start your business, do not let the lack of finance hold you back. You can still get a veterans business loan and achieve your dream of being an entrepreneur. At Private Client Capital Partners, we have helped many veterans access funding. Give us a call and let us discuss your options.