What You Need to Know About Veteran Business Loans
As a business owner and a veteran, you know all about hard work and sacrifice to achieve your goals and dreams. Additionally, you know how important a consistent cash flow is to support all your hard work and effort, thus keeping your business growing and moving toward the next level.
Funding will be necessary at various stages of your business, which can include hiring new employees, capitalizing new equipment or processes, and funding marketing to expand your customer base. Working capital loans can also be a viable option for you to manage your business’ overhead costs.
Veteran business owners can face a unique set of challenges when it comes to accessing financial capital. Part of this challenge is the gaps in their financial history, due in part to their time devoted to active duty, especially when they were deployed overseas. However, there are options available that specifically target veteran businesses and allow them to access critical financing at all the stages of their business. Here is an overview of the small business loans available that are specifically geared toward veteran business owners.
SBA Implements Measure for Veterans
The U.S. Small Business Administration (SBA) implemented a new measure to help veterans have access to small business loans. One of the most important parts of this new measure is that the borrow upfront fee is set at zero for all the veteran loans that are authorized under the SBA Express program. It should be noted that 73% of SBA loans to veterans were under $350,000 and below. That means small veteran-owned businesses can benefit from less upfront costs to access necessary capital for their specific needs.
The goal is to help veterans, who opt to own and run a small business, to get access to less expense capital financing. Plus, it encourages greater participation in the SBA loan programs and a direct financial benefit for those owners.
As a veteran owner of a small business, you are looking for any way to reduce expenses while accessing the capital necessary for your business, both to address short-term and long-term needs. These loans can also be used to purchase equipment, hire fresh employees to gain new skills for your business, and even to find a new space to expand your operations.
Benefits of SBA Loans for Veterans
For veterans, SBA loans provide a variety of benefits in terms of financing. They offer rates and fees that are comparable to non-guaranteed loans. These competitive terms are key to helping you to manage your cash flow effectively. Be open to comparing loan terms to find the right ones to fit the needs of your business, no matter what stage it is currently in.
Plus, there are the unique benefits associated with these types of loans. Borrowers may be able to take advantage of lower down payments and flexible overhead requirements. Depending on the loan, you might not even have to provide collateral for your financing. However, you will still have to demonstrate that your business can handle the additional payment for this financing. If your business is doing well financially, that can assist you throughout the SBA application process. Keep in mind that the process will take approximately 90 days and has specific requirements. If you are looking for quick funding options, then you might want to look outside the SBA loan program.
As a veteran, it is important to work with a lender who can understand the SBA loan process and offers the right loan options to help you in financing your business and its needs. To successfully complete the application process, it is important to understand the type of financing that you need. Our experienced and knowledgeable team can help you to determine what you need and to find out what steps you need to take to access financing for your business.