Small Business Loans for Veterans

sba veteran loansOne of the biggest roadblocks to starting or expanding your own business is obtaining capital. This is a tough roadblock for anyone but can be particularly tough for veterans due to inconsistent or poor credit. This is why there are small business loans for veterans.

According to a 2017 report from the Small Business Administration (SBA), ‘Veteran Owned Businesses and Their Owners,’ small business firms owned by veterans employed 5.03 million people, had an annual payroll of $195 billion and receipts of $1.14 trillion. Currently, one out of every ten businesses is owned by a veteran. Veteran-owned firms represent 9.1 percent of all U.S. businesses and this number continues to rise.  

These numbers are significant because it shows that if we don’t give veterans an avenue to fund new business ventures, we’d be missing out on a considerable sector of the economy. That’s why the SBA takes such an active role in providing support to veteran-owned businesses. 

The SBA Veterans Advantage Loan Program is a loan program designed for veterans. It offers zero upfront fees for all veteran loans authorized under the SBA Express program, up to $350,000. Typically, the fee is 3 percent for loans over $150,000. 

For veterans looking for a loan larger than the size of the SBA Express, the SBA 504 is an excellent option. The 504 loan is not just for veterans however, veterans are able to receive a cash rebate that is only able to them under the VetLoan Advantage. TMC Financing is happy to offer this rebate to their veteran clients. Participation in the VetLoan Advantage is voluntary for Certified Development Companies (CDCs), who administer the SBA 504 loan on behalf of the SBA, so be sure to check with your CDC to confirm their participation.  

The SBA 504 loan helps small business owners acquire fixed assets—land, buildings, equipment and can finance construction, renovations and equipment upgrades. There is no limit to the total project size and no additional collateral is needed. The 504 loan features 90 percent financing and a long-term, below market fixed interest rate.  

To take advantage of these veteran benefits, you can be any one of the following: 

  • A veteran 
  • A service-disabled veteran 
  • Active-duty military participating in the Transition Assistance Program (TAP) 
  • A reservist or National Guard member 
  • The current spouse of any veteran, active duty service member, reservist or National Guard member, or the widowed spouse of a service member who died while in service or of a service-connected disability 

If you fall into one of the above categories and own or control more than 50% of a small business, you are eligible for special consideration. 

In addition to providing special financial incentives, the SBA recognizes the importance of providing special training programs to veterans as well. 

The Service-Disabled Veteran-Owned Small Business Concern Program allows federal agencies to set aside acquisitions for service-disabled veteran-owned small business concerns to compete for exclusively and in some cases to make them sole-source providers. By joining the disabled veterans’ business program, your business is eligible to compete for the program’s set-aside contracts. 

The SBA’s Office of Veterans Business Development (OVBD) is devoted exclusively to promoting veteran entrepreneurship and facilitates several programs specifically for veterans. The OVBD features customized curriculums, in-person classes, and online courses to give veterans the training to succeed. The programs teach the fundamentals of business ownership and highlight ways to gain further SBA assistance.  

Boots to Business and Boots to Business Reboot are entrepreneurial programs offered by the SBA on military installations around the world. They provide participants with an overview of business ownership and is open to transitioning service members (including National Guard and Reserve) and their spouses.  

The Women Veteran Entrepreneurship Training Program (WVETP) provides entrepreneurial training to women veterans, women service members, and women spouses of service members and veterans as they start or grow a business. 

The Service Disabled Veteran Entrepreneurship Training Program (SDVETP) provides entrepreneurship training programs to service-disabled veteran entrepreneurs who aspire to be small business owners or currently own a small business.  

The Veteran Federal Procurement Entrepreneurship Training Program (VFPETP) delivers entrepreneurship training to veteran-owned and service-disabled veteran-owned businesses nationwide interested in pursuing or are already engaged in federal procurement. 

Along with the SBA, TMC believes in giving back to our country’s veterans by making financing accessible and affordable, with the utmost respect and compassion. Veterans deserve the best when seeking to grow and improve their businesses, and we aim to help. 

If you are located in Arizona, California, Nevada, or Oregon and are interested in learning more about the SBA 504 Loan Program for commercial real estate financing, TMC Financing is here to help. We are the #1 SBA 504 lender in the nation and a Premier Certified Lender with the SBA. TMC’s 504 loan experts can guide you through the loan process and explain all of your options.

Contact a 504 expert at TMC for more information today.