As a small business owner, you want to do everything you can to grow your business, which may include obtaining funding. Unfortunately, the process of obtaining a business loan can be complicated. However, it is important to note that the Small Business Administration does offer support and special considerations to veterans.
In this article, we’ll explain how military veterans and their families can obtain the funding they need to achieve optimal growth.
VA Small Business Loan Explained
If you’re a former service member interested in starting your own business, you will likely need some funding to get started. While you can attempt to obtain funding through a traditional lender, your status as a military veteran allows you to access special funding options through the SBA, known as VA small business loans.
VA small business loans are not associated with the Department of Veterans Affairs, but with the SBA Office of Veterans Business Development. These loans are provided through a bank or other lender and require repayment with interest. The difference is that the SBA works with the lender to set guidelines that reduce their risk, which means lower interest and longer terms for borrowers.
Types of VA Small Business Loans
There are several options available for military veterans who are looking for small business funding, including:
Standard 7(a) Loans
Military Reservist Economic Injury Disaster Loan
Microloans
Who Qualifies for VA Small Business Loans?
The specific requirements vary based on the specific loan, the personal credit score of the applicant, and a few other factors. However, the basic requirements for the 7(a) loan are:
Business operates for profit
Business is engaged in or proposes to do business in the USA or its territories
Business owner has invested equity in the business
All other alternatives have been exhausted
Do You Need a Loan to Achieve Optimal Business Growth?
At Monterey Commercial Capital, we understand that the road to business financing can be a complicated one. We can help make it much easier for you. If you are a United States veteran in need of funding to achieve optimal business growth, contact us today.