Disabled veterans will be able to get loans for a discounted cost through the Small Business Administration. Veterans have many challenges when they get out of their military. Many veterans struggle with adjusting to being in the traditional workforce. However, most veterans have the skills that are necessary to succeed in the small business world. Financial capital is necessary for anyone who wants to start any type of business. Disabled veterans will be able to get funding through the Small Business Administration.
SBA Veterans Advantage
Veterans who have been honorably or medically-discharged from the military qualify for a Veterans Advantage Loan. You must own at least 51 percent of the business in order to qualify. Spouses may also qualify for a loan. You can get an express loan that ranges from $150,000 to $350,000. There are no guarantee or application fees. These loans will typically be processed within two days.
The Small Business Administration also has 7 (a) loans. The loan term is typically for 10 years. However, you can get a real estate loan with a 25-year term. The Small Business Administration offers lenders an 85 percent guarantee.
Non-SBA Express Loans are also available. People will get a loan that ranges from $150,000 to $500,000. There is an upfront guarantee fee, but it is less for veterans. The normal fee for loans is 1.5 percent for loans that mature after 12 months. The fee is 0.0125 for loans that mature within 12 months.
How to Put Together a Business Plan
Lenders want people who can put together a plan for a successful business. They know that if the business is successful, then the borrower will be more likely to pay the loan back. Disabled veterans are required to write a detailed business plan just like everybody else. You will need to explain why the service or product is necessary. You will also need to outline a marketing plan.
The Small Business Administration has workshops to help veterans and service members. The purpose of these workshops is to help people develop a plan. It also provides people with the tools that they need in order to be a successful business owner. Syracuse University also has an Entrepreneurship Bootcamp. This is a course for both veterans and their family members.