Veteran Entrepreneurship Series: Loans for Veterans
Welcome to another part of Empire Resume’s series on Veteran Entrepreneurship, where we’re shedding light on the resources our fellow veterans need to fuel their small business ideas. Today, we’re discussing loans specifically for veterans and you how you can use them to start a small business.
If you need money to fund your business, you can always visit your local military bank or credit union like USAA and Navy Federal. But for purposes of this article, we will provide a brief run down of the loans the Small Business Association offers for veterans and how to apply for them.
Which SBA Loans are for Veterans?
The SBA has three types of loans for veterans, including the:
Remember, these are just a small portion of the loans the SBA offers. It is important to keep an eye out on the SBA’s programs, relief efforts, and other funding options that have taken effect since COVID-19 has affected military families.
SBA Loan Details
Each loan has its own unique borrowing limit, credit history obligations and, based on the amount of the loan, may require collateral.
The loans are issued by SBA approved lenders such as banks, credit unions, and other specialized entities.
From the time you apply for the loan, you can hear approved or denied within 24 hours to 10 business days depending on the loan.
How to Qualify and Apply for an SBA Loan
In order to qualify and apply for a loan through the SBA, your business must operate in the United States and be a for-profit business. Non-profit organizations are not eligible for loans.
Other general requirements include:
- Being in operation for at least 2 years
- Qualify as a small business by the SBA size standards
- Show a need for financing with documentation
- Show that the funds will be used for business purposes
- No prior debts to the government
Additionally, you must demonstrate the ability to repay the loan. Besides the borrower application form, be sure to have all business documents such as profit and loss statements, licenses and certifications and tax returns dating back at least 3 years.
Once you’ve gathered all the necessary documents and completed the application, you will submit the form to an SBA participating lender. Then, you’re well on your way to getting a loan to cover some of the business expenses.
Even though the SBA provides loans, never forget to look outside of the government organizations for loans if they will better suit your needs. If you’re working from home during the Coronavirus pandemic, now is the perfect time to surf the web for outside lending sources.
We’d love to hear how will the SBA loans will help you in your business venture. Let us know in the comments below.
Dr. Phillip Gold is President/CEO of Empire Resume and has vast experience writing resumes for service-members transitioning from the military into civilian roles. He served as a Captain in the U.S. Air Force responsible for leading nuclear missile security. Phillip is a Certified Professional Resume Writer and holds a BA in Communications from The Ohio State University, an MS in Instructional Technology, an MBA in Finance, and a PhD in Finance.