Business growth can be difficult to achieve when you are low on funds. If you happen to be a veteran, consider checking into the various financing options available for you.
Eligibility Requirements for Business Growth Loans for Veterans
The first eligibility requirement you must meet for a veteran loan is to be an active-duty or retired member of the Army, Navy, Marines, or Coast Guard. The Small Business Administration Department of Veterans’ Affairs also requires that you receive an honorable discharge from military service. The VA will consider you for a business growth loan if you are eligible for the Transition Assistance Program as well.
Widows and current spouses of active-duty military personnel are also eligible to apply. Keep in mind that just because you or your spouse are eligible doesn’t mean you will receive automatic approval for your business loan.
Common Types of Loans Available for Veterans
The first thing to understand about veteran loans is that you still go through a standard lender to receive one. The difference is that the Small Business Administration backs the loan in case you default on it. For this reason, you can expect the SBA to check your finances thoroughly. Here are some of the loans offered by the SBA Department of Veterans’ Affairs:
MREIDL: The Military Reservist Economic Injury Disaster Loan is for veterans called to active duty while operating a small business.
Microloan: This loan is specific to small business owners who cannot obtain financing through any other means. The maximum amount you could receive approval for is $50,000.
7(a) Loan: You should be an established entrepreneur before applying for this type of business growth loan. The maximum amount granted is $5 million, which most business owners use to acquire property and start a working capital fund.
GM Capital Group offers more flexible small business loans for veterans and non-veterans alike. Please contact us to learn more about our available financing options.