• May 31, 2013
2 minutes Read
Veterans have a lot options when it comes to financing a business. VA loans, available through the Small Business Association (SBA), offer veterans and active duty service members (or their spouses) the chance to start or sustain their own business. Like most loans, there are requirements attached.
Before you explore what’s out there, it’s important to first certify your business as veteran-owned or service disabled veteran-owned. Inc.com has a great guide for doing just that.
The Patriot Express Pilot Loan Initiative doesn’t give out loans, but rather it allows lenders with authority—like certain banks—to offer loans and revolving lines of credit. Unlike traditional bank loans, only certain service members qualify.
Eligible business owners include:
Note that there are factors that may prevent you from securing a Patriot Express loan. Bad credit, defaulting on child support, unpaid IRS liens, or bankruptcy are just a few examples.
Additionally, you must own at least 51 percent of your business. The initiative is set to expire in October 2013, so it’s important to get on this if you meet the requirements.Military Reservist Economic Injury Disaster Loan (MREIDL)
MREIDLs are reserved for “essential employees” called up for active duty. These loans allow businesses to survive while the essential employee or business owner is away. The SBA will first determine if the business can recover when the service member returns.
Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC)
SDVOSBC (phew, a mouthful) provide federal contracting opportunities to service-disabled veterans. Under the program, and according to the SBA, the government attempts to set aside no less than “3% of the total value of all prime contract and subcontract awards for [participating]…small business concerns.”
Small Business Grants
It’s a common misconception that small business grants are available for for-profit businesses. They are usually reserved for non-profits. If you wish to run a for-profit business, you need to apply for a bank loan or one of the SBA loans we mentioned above.
If you’re not able to secure an SBA loan or traditional bank loan, you still have options. A variety of companies provide access to loans for small businesses. (Yes, like CapTap.)
We can offer access to loans that have a maturity date and manageable, daily payments instead of the large, monthly payments that most banks require. Small amounts are automatically drawn from your business account each day until you repay the loan.
In short, as a veteran, you have plenty of choices when it comes to funding your business. Make sure to visit SBA to check out the possibilities.
And if you’re ready to learn more about CapTap, visit www.captap.com.
IMPORTANT INFORMATION: This is not investment, tax or legal advice. Should you have questions please consult you own attorney, tax accountant or other appropriate expert having expertise in the area of your question or before making important decisions in these areas.
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