Everything You Need to Know About Applying For a Veteran Loan

Everything You Need to Know About Applying For a Veteran Loan

Veterans who want to start a business face many of the same challenges as non-veterans, especially when it comes to raising start-up capital. This is just one of many reasons why business ownership by veterans since 2001 is about half of what it was before then.

The G. I. Bill, which many previous generations of veterans relied on to become business owners, no longer offers a low-interest veteran loan. Fortunately, other financing options are still available for veterans who want to become business owners.

Preparing to Apply for a Veteran Loan

The qualifications for loan approval are typically the same for veterans as they are for non-veterans. Lenders look for applicants with a good credit score, history as a business owner, and stable income. Veterans should also prepare a business plan and gather their financial records before they approach a lender since they will need these things as part of the application process.

Applying for a Veteran Loan from the Small Business Administration (SBA)

Veterans who are new to entrepreneurship can take advantage of free courses that cover such topics as business financing. The SBA and the Office of Veterans Business Development jointly offer the free courses. Veterans who have never prepared a business plan can also learn how to do that at no cost.

The SBA does offer a special veteran loan program for men and women who own or intend to own at least 51 percent of a business. Applicants who don’t meet that criteria must be an active-duty service member or a service-disabled veteran. Spouses of veterans who meet any of these criteria also qualify for an SBA veteran loan, as do widowed spouses of military members who died while in service to the country.

The SBA loan for veterans has many advantages, including lower interest and more favorable repayment rates than banks typically offer. Additionally, Green Apple Funding offers several other flexible business loan options for veterans and non-veterans alike.