Published By Janet Gershen-Siegel at March 23, 2018
We’ve got 5 Business Loans Veterans should know about. Many thanks for your service; these are for you. Here are some of our favorite options when it comes to small business loans for veterans.
The SBA Express program is a great loan program for veterans. You can get approved for a loan for as much as $350,000. Get rates of 4.5-6.5%. Get a line-of-credit good for 7 years. No collateral is needed for up to $25,000. There is a turn-around in 36 hours.
The Leveraging Information and Networks to Access Capital (LINC), an online matchmaking service, links small business owners to nonprofit lenders who supply free financial advice and specialize in microlending, smaller loans (SBA Community Advantage program), and real estate financing (SBA 504 loan program).
Collateral-based financing offers low rate financing. Personal credit quality and revenue don’t determine your approval. Some acceptable collateral includes:
– Account receivables and purchase orders
– 401k, IRA, stocks, and bonds
The idea behind collateral-based financing is that a lender requires a guarantee. For the lender, an excellent assurance that you will repay funding is when your property is at stake if you do not.
Cash flow financing is another great loan program for veterans, if you’ve been in business one year or more and have $10,000 in monthly revenue.
Unsecured financing is available for business owners who are veterans, up to $150,000. You can get approved if you have decent personal credit, and get 0% intro rates for 6-18 months … even as a startup business.
The Military Reservist Economic Injury Disaster Loan Program (MREIDL) offers loans of as much as $2 million to eligible small businesses to address operating costs that cannot be met as a result of the loss of a necessary worker called to active duty in the Reserves or National Guard. This one comes directly from government benefits.
The SBA offers some terrific loan programs such as their 7(a) loan for working capital. In order to be approved you’ll need to have:
SBA Veterans Advantage guarantees loans approved to businesses owned by veterans or military spouses.
If you have decent personal credit and tax returns for two years that show a profit, alternative lenders have programs that could work. You could be approved with rates of 7% or less. Lenders will want to see some kind of profit on your tax returns.
The best business loans for veterans are out there. Not considering them means you’re leaving money on the table.