Veteran business loans are available for veterans who have business ideas they would like to execute. It is quite obvious that military training promotes self-confidence, determination, discipline and leadership skills. Along with high-risk tolerance which are essential qualities for successful small business owners.
There are several non-profit, federal, and corporate organizations that give out Veteran Business Loans. Provided candidates have met their required criteria. Some organizations also extend the benefits to military spouses.
Veteran Business Loans and More…
These guys have a variety of programs for veterans and service-disabled veterans. These range from starting a business to grow to finance, to mentoring and training.
However, the loan acquisition programs for veteran-owned business by SBA are Small Lending such as SBA Community Advantage program, and SBA 504 loan program (real estate financing).
They use the Leveraging Information and Networks to Access Capital (LINC) to connect small business owners with nonprofit lenders that offer free financial advice and specialize in microlending.
A loan of about $2 million is provided to eligible small business owners. This covers operating costs that are unlikely to be met. Due to the loss of an active employee who was called to active duty in the Reserves or National Guard. This loan is covered by the Military Reservist Economic Injury Disaster Loan Program (MREIDL).
More importantly, the SBA Veteran’s Entrepreneurship Act of 2015 reduces the upfront borrowing fee for military spouses and eligible veterans to zero dollars. This reduced fee is for SBA Express loans reaching about $350,000.
Though a regular guarantee fee will be levied, there is provision for the regular guaranty fee of guaranteed Veteran Business Loans in 2017 is reduced to 50% on reaching the $150,000 benchmark. Another good thing about SBA application is that you will receive a response to your application within 36 hours.
2. Bond Street
A medium-term loan lender who offers from $50,000 to $1 million loans. With terms ranging from 1 to 3 years. A better interest rate than short-term lenders, ranging from 6% to 23%. Bond Street is beneficial to veteran business owners who have a minimum personal credit score of 600.
With eligibility requirements of a minimum of $200,000 annual revenue. A 600 personal credit score. And a business age of 2 years. You can get a Bond Street funds applications in 7 days with a BI-monthly remittance schedule.
3. Lending Club
They offer both medium-term loans and medium-term lines of credit. With Lending Club, you have a range of options to work with. These loans and lines of credit are at a range of $5,000 to $300,000 at terms ranging from 1 to 5 years.
They have a loan rate of 5.90% to 25.90%. For eligibility, Lending Club’s minimum personal credit score is 620 for qualified veteran business owners.
Also, the business has to have a minimum annual revenue of $75,000 and have a business age of at least 2 years. You don’t have to pay any additional charges other than a 0.99% to 6.99% origination fee. Loans are funded between 1 to 30 days of application submission.
With a 9.5 out of 10 rating of 220 reviews by TrustPilot, SmartBiz offers 7(a) SBA term loans with monthly repayment structure. SmartBiz offers a loan range of $30,000 to $350,000. At the rate of 6.25% to 7.25% within 10 years at terms.
With eligibility requirements of a minimum of $100,000 annual revenue. A 600 personal credit score. And a business age of 2 years, you can get long-term Veteran Business Loans.
SmartBiz charges an origination fee of 4% and for a loan of over $150,000. You will also have an SBA guaranty fee of 2.5%. SmartBiz funds applications in 5 to 90 days after submission. You can as well make SmartBiz a second lender.
Here’s a term loan with monthly remittance schedule, structured similarly to a traditional bank loan. I wouldn’t dare to differ after an excellent 9.5 out of 10 rating of 2643 reviews carried out by TrustPilot. They offer a loan range of $25,000 to $500,000, at the rate of 5.49% – 27.79% within 5 years at terms.
The eligibility requirements of Funding Circle is what is fascinating the most. They require a minimum annual revenue of $0, 620 personal credit score, and a business age of 2 years. The only charge accrued to a loan is an origination fee of 1.49% to 4.99%. Loans are approved within 5 and 15 days of submission and funding is in 7 days.
Offering both short-term Veteran Business Loans and lines of credit for a variety of business purposes. You can get a loan of about $5,000 to $250,000 for veterans which is payable in 3 to 24 months. The loan rate is 8.5% to 79% APR for a short-term loan.
Whereas, for the line of credit products, OneDeck can give out a loan of $5,000 to $100,000 at the rate of 13.99% to 36% APR in 6 months. The annual revenue requirement for businesses is $100,000. That is the same for both short-term loan and line of credit.
A personal FICO score and business age of 500 and 600, 12 months and 9 months respectively for short-term loans and line of credit. The first time you take out a short-term loan with OnDeck, you’ll have an origination fee of 2.5% while the second short-term loan accrues an origination fee of 1.25%. Subsequent loans after that will incur a zero origination fee.
Various organizations from government agencies to nonprofits to commercial institutions, and from VA small business loan opportunities to special grants for veteran business owners, business development initiatives, and more believe in the potential of veteran entrepreneurs and in the importance of helping veteran business owners succeed.
If you have a well-strategized business plan or current business you would like to step up, the above mentioned are very reliable in getting Veteran Business Loans.