Military men and women who are either still on duty or retired might want to acquire some loan to establish or expand their business. While the Department of Veteran Affairs (VA) should take care of veterans’ loan needs, veterans and their spouses don’t get their business financial help there. They, therefore, resort to small business loans offered through SBA and other commercial lenders.
The SBA provides discounted loans to veterans through the Veterans Advantage lending program, popularly known as VA loans. Initially, VA loans meant veterans who own business were accessing the SBA 7 (a) loans at a reduced or eliminated fee. Today veterans can only apply for other SBA loans as the VA loans were scraped off.
But what do they need to qualify for these SBA loans? Let’s find out below.
What Veterans Need to Qualify for Business Loans
Just like the requirements needed for a general business loan, receiving a veteran’s business loan also demands that you meet some or all of these requirements. The most common conditions you will be asked to meet are; attractive credit scores, a good financial history, and time you’ve spent in business.
Most importantly, you will be asked to prove your veteran status. The following groups of people are eligible for VA business loans.
- Veterans who have honorably been discharged
- Service-disabled veterans
- Military service members who are still active on duty
- Active National Guard members and Reservists
- Current spouses of any active duty service member, veteran, National Guard Member, or Reservist.
- A widowed spouse of a service member who died in service or died from a service-related disability.
An exemption includes veterans who got a dishonorable discharge from service. They are not eligible for VA small business loans and may try other financing forms such as factoring or asset financing.
To prove your veteran status, you will be asked to provide your discharge papers if you’re already discharged or your military ID if you’re still in service.
Are You Ready for Your Veteran Business Loan?
After you qualify for your veteran business loan, you will need an SBA financing institution to finance your loan. Getting a reliable one that processes your loan in a short time can become challenging. Contact Painted Horse Financial today for your SBA loan financing.
