Today’s Top Lenders for Veteran-Owned Businesses
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Types of Small Business Loans for Veterans
1. SBA 7(a) Loan
2. SBA Express Loan
The maximum amount you can borrow: Standard: $5 million Express: $350,000 The maximum amount guaranteed by the SBA: Standard: 85% for loans up to $150,000; 75% for loans greater than $150,000 Express: 50% for all loan amounts The duration of revolving lines of credit (excluding extensions): Standard: Up to 10 years Express: Up to 7 years
3. Military Reservist Economic Injury Disaster Loan (MREIDL)
Cover lost income or profit Expand your business Refinance long-term debt Replace typical commercial debt MREIDL interest rates will not exceed 4% a year Loan maturity is based on your ability to repay the loan, with a maximum maturity of 30 years The maximum loan amount is $2 million
Non-Government Small Business Loans for Veterans
Loan from an online lender: Online lenders tend to have less stringent qualification requirements than banks. However, their interest rates may be higher and borrowing amounts may be lower. Make sure to compare small business lenders online before making a final decision. Business line of credit: A business line of credit is similar to a personal credit card, with a credit limit and interest accrual only on the expenses you have not repaid. Banks and online lenders both offer business lines of credit. Peer-to-Peer Network: A peer-to-peer network matches borrowers with independent investors. Because it doesn’t involve borrowing from a bank or online lender, a peer-to-peer network may be a good option when it comes to small business loans for veterans with brand-new businesses or bad credit.
Non-SBA Small Business Loans for Veterans: Our Top Picks
Applying for a Small Business Loan for Veterans
SBA Veteran’s Advantage: Eligibility Requirements
Active duty Service-disabled Reservists and/or active National Guard members A spouse of a service member Veteran: Copy of Form DD 214, which is provided to veterans who were not dishonorably discharged Service-disabled veteran: Copy of Form DD 214 or a letter from the Department of Veteran Affairs (DVA) that you have a disability connected to your time in service. Transitioning active duty military member: Any of the following: DD Form 2, U.S. Armed Forces Identification Card (Active) DD Form 2, Armed Forces of the United States Geneva Conventions Identification Card (Active) and DD Form 2648, Active Duty Military Member DD Form 2648-1, Reserve Component member Reservist and National Guard member: DD Form 2, Armed Forces of the United States Identification Card (Reserve) Current spouse of a veteran: Current proof of your spousal relationship and the veteran’s Form DD 214 Current spouse of a transitioning active duty military member or current Reservist/National Guard member: Current proof of your spousal relationship and DD Form 1173, Department of Defense Guard Reserve Family Member Identification Card Widow of an active duty military member who died in service or veteran who died of a service-related disability: A letter from the Department of Defense (DOD) or DVA explaining your situation.
Small Business Loan for Veterans: Applying in 7 Steps
Determine the needs of your business and why you need the loan. Add up the costs and decide which needs are highest priority for your business. Choose the type of small business loan for veterans that serves the needs of your business and your situation. Choose the type of lender(s) that offers what you need. Examples include: An online lender, like those you can compare and apply with using our online form A bank A credit union, which is a group of contributing members who deposit and lend out their own money to other union members. Credit unions tend to have lower loan fees compared to banks and may offer better customer service A peer-to-peer network, which connects borrowers directly to investors
Small Business Support for Veterans with Disabilities
The company must operate as a small business. The business must be owned and controlled by one or more service-disabled veterans, at a minimum of 51%. One or more service-disabled veterans must be responsible for managing operations and making long-term decisions. Eligible veterans must have a disability connected to their past service.
Top Picks Methodology
Minimum credit score is 650 or below Minimum time in business is 1 year or less Minimum annual revenue is $100,000 or less No collateral required Interest rates starting at 20% or below Maximum loan term is 25 years or longer Max loan amount is $500,000 or higher Simple application (online, no mailing or going into bank required) Time to funds is less than a week Whether it offers 24/7 support (online or phone) Special benefits/terms for the interest group, if applicable (veterans)
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