Best SBA Backed Up Small Business Loans for Veteran Entrepreneursby Ally Jamson Business Professional
As per the report of the United States Census Bureau, “there are 18.2 million military veterans in the United States”. After serving the nation, a great many veterans are eager to use their self-disciplined, leadership skills and never to give up attitude to start the life of an entrepreneur.
By doing so they want to continue to give back to their community and start a new source of income. If you just retired from the military and want to launch a new venture, or if you’ve already operating a business and need funding to buy inventory, hire employees, open a new location or manage cash flow issues, veteran grants and loans can help. There are many to convert their business dream into reality.
At innovative financing marketplaces, veteran entrepreneurs are to get easy and fast funding. We help them find and compare a variety of loan offers so they can get the working capital they need to flourish.
Best Small Business Loans and Grants Available For Veteran Entrepreneurs
SBA 7 (a) Loans
It is one of the most popular SBA backed up small business financing option for veterans. With longer repayment terms, competitive interest rates, and lower down-payments than many of its financing counterparts, it’s one of the most affordable working capital solutions for veterans. With SBA 7 (a) loan, the amount you can borrow ranges from $30,000 to $5 million and the interest rate from 5% to 10%.
It is one of the most flexible types of funding that veteran entrepreneurs will use to cover a variety of business needs, including purchasing a commercial property, refinancing debt, expand an existing business, acquiring a new business, increasing working capital, and paying various operational expenses.
Military Reservist Economic Injury Disaster Loan Program (MREIDL)
This program is run by Small Business Administration, and these funds are directly given by SBA through the MREIDL program and not by banks and alternative lenders. If you can’t meet your obligation due to some reasons such as if you’ve been called to active duty, you may qualify for this loan.
The borrowed amount from this loan program can be used to pay the necessary obligations as they mature until you return from duty and can manage their finances again. These loans have very competitive terms and can help you keep your business afloat in challenging times. With MREIDL, you can get an amount up to $2 million with repayment terms of 30 years. This loan, however, is a secured loan that requires collateral of $50,000.
SBA Microloan Program
This is another great SBA backed up loan program for veterans. A microloan is generally used for short-term business purposes such as purchasing inventory, managing cash flow issues, and cover day-to-day business expenses. As a veteran, the maximum amount you can get through this program is $50,000 with a maximum repayment term of six years.
To apply for this loan, every veteran should have a minimum 640 credit score, 10% down payment, and collateral. It should be noted that you can’t use microloan for buying property or paying debts.
About Online Lending Marketplace for Small Business Loans for Veterans
At online marketplaces, it connects veteran entrepreneurs to 40+ SBA partnering alternative lenders so they can find and compare a variety of SBA loans and choose one that best fits their small business needs and budget. Besides SBA loans, you, being an entrepreneur, can apply and obtain other funding options for your small business such as working capital loans, business credit cards, lines of credit, and a lot more.
Created on Feb 26th 2021 13:09. Viewed 131 times.