Starting Your Own Business: Loans for Veterans

Business loan application forms with pen and glassesSome veterans have difficulty readjusting to civilian life after coming home from service, particularly when it comes to working or starting a business.

Fortunately, the Veterans Affairs not only offer assistance for those who want to buy or refinance a house through the VA loan program; it also supports those looking to start their own business.

Business Loans for Veterans

Many state and local organizations assist veterans who want to be their own bosses. If you want a loan guaranteed by the government, you could consider the Small Business Administration’s Express Loan, which will provide you access to revolving credit lines typically within 36 hours of approval. Depending on your specific circumstances, your fees might even be waived.

The SBA also offers the Veterans Advantage Program, which lowers the upfront guarantee fees on non-Express loans if the loan amount is between $150,000 and $500,000. Fees vary depending on the loan term, and you can get discounts if you already have a business that’s SBA guaranteed.

Another option is the Military Reservist Economic Injury Disaster Loan or MREIDL. However, while other SBA loans could be used for starting a new business or to cover related business expenses, an MREIDL could only be used in the event that an important individual in the business gets called for service. The maximum amount you could borrow is capped at $2 million, with 4% interest rate. You would also need collateral if your loan exceeds $50,000.

You have several options if you need funds to put up a business. Start with the Veterans Affairs Department to see which option is the best for your situation. Create a plan and turn your vision into reality in no time.

Posted on by Tsfp6 in Money Times

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