Military veterans can apply for an SBA loan to start a business. A typical SBA loan for veterans has several advantages that other business loans don’t offer. Veterans can not only start a business with an SBA loan but also get working capital or seek financing to manage debt, to recover from a commercial disaster or even to assist in special transactions such as imports or exports. SBA loan for veterans usually include the immediate family of military veterans as well.
There are many types of SBA loan for veterans and the advantages will depend on the specific choice.
- There are two notable wings of Small Business Administration that cater to veterans. One is Service Corps of Retired Executives or SCORE and the other is Veteran Business Outreach Centers or VBOC. SCORE deals with grants and financing of business ventures of veterans and also offer free counseling and mentoring. Such services are not available for ordinary businesses. Veteran Business Outreach Centers or VBOC works in conjunction with SCORE and many other wings of SBA to offer loans, expert advice and associated resources. VBOC offers grants, facilitates cooperative agreements with organizations that can offer technical assistance to businesses run or owned by military veterans. These advantages of SBA loan for veterans are not available for nonveteran business owners.
- There is a special program which is known as the Express Loan Program. Any type of SBA loan for veterans in this program has several unique advantages. For instance, there was an initiative in 2014 when the SBA announced that veterans would not have to pay any upfront fees and they will not have to bear any down payments or contribution towards the loan amount as long as the loan applied for was less than $350,000. In addition to that, Express Loan Program has interest rates that are much lower than other business loans. In fact, SBA loan for veterans has a rate lower than other SBA loans.
- SBA loan for veterans has another gamut of advantages that takes into account the specific type of loan or the type of business. In addition to the benefits of an SBA loan for veterans, businesses pertaining to a certain niche will qualify for a loan in a category that deals with that industry or nature of business. For instance, there are rural business loans within the ambit of SBA that would have certain unique advantages. All these would be in addition to the lower rates of interest, lenient terms and technical assistance of the SBA loan for veterans.