These days, there are more veteran-owned businesses than non-veteran-owned businesses and these businesses have a significant impact on the economy. Since there are so many veterans returning from serving their country, they need small business loans to start and grow their businesses.
What are VA Small Business Loans?
These loans are not provided by the VA, or Veteran’s Administration, but are partially guaranteed by the SBA. The loans are processed through a bank or other financial institution.
These are loans- not grants- that are provided to veterans to start or grow their own businesses. The funds must be repaid within a specified period of time.
Additionally, the SBA offers counseling/training for those who get loans to offer them additional support in their business ventures.
Veteran-Owned Small Business Loans
If a veteran discovers that he/she is unable to obtain financing through traditional avenues, the SBA offers several types of programs, including:
Standard 7(a) Loan Program
Military Reservist Economic Injury Disaster Loan (MREIDL)
SBA 504 Loan Program
SBA Advantage Loan
VA Small Business Loan Eligibility
There are a few requirements in order to be eligible for a loan for a veteran-owned business:
Active duty/eligible for Transition Assistance Program
National Guard members
Current spouse of any of the above
Widowed spouse of service member
If you are a veteran that was dishonorably discharged, you are not eligible for these programs. Additionally, the business must be 51% veteran-owned and must be for-profit, non-profits are not eligible.
There are a few alternatives to the above funding for veteran-owned businesses. They are as follows:
Hivers and Strivers
Service-Disabled Veteran-Owned Small Business Program
If you are a veteran and are interested in starting your own business, contact Triport to learn about our financing solutions for veteran-owned businesses.