Updated: January 18, 2023 | By: LendVer Staff –
According to a recent Small Business Administration (SBA) report, veteran-owned firms represent about 9.1% of all U.S. firms. When you consider that there are over 32 million small businesses in the United States, the number of veteran-owned businesses is staggering. Veterans of the armed services are highly-trained professionals who are conditioned to operate under stressful situations, lead others and delegate responsibility when necessary; this skill set makes them ideal small business owners.
The Coalition for Veteran-Owned Business reports that 26% of veterans want to start a business, but only 6% actually do. A lack of business financing options for veterans may be one of the dominant reasons why so many veterans who wish to start a business, do not. The good news is that there are a number of loan programs and lenders that cater to financing veteran-owned businesses.
Government Guaranteed Financing
SBA financing is a government guaranteed lending program that offers certain incentives and discounts to veteran-owned businesses. The SBA doesn’t actually provide the financing, but it guarantees the loans that participating lenders make. One firm that specializes in providing SBA loans to veteran-owned businesses is SmartBiz. Although SmartBiz does not provide startup financing, it does provide low interest rate loans from $30,000 to $5 million under the SBA 7(a) program. Because SmartBiz is the #1 facilitator of SBA 7(a) loans < $350,000 (the firm has provided over $9 billion to over 230,000 small businesses) it has proficient expertise in securing the correct SBA financing for veteran-owned businesses. For those veteran-owned businesses that don’t qualify for SBA financing, SmartBiz offers competitive bank term loans and credit lines up to $300,000.
South End Capital also specializes in financing veteran-owned businesses and offers a number of distinct loan programs for business owners and property investors from $1,000 to $75 million. The firm’s primary program offerings are commercial real estate mortgages, investment residential real estate mortgages, Small Business Administration (SBA) 7(a) and SBA 504 loans, United States Department of Agriculture (USDA) loans, equipment financing, construction and development loans, and collateralized and uncollateralized business loans.
Fast and Affordable Financing
For those veteran-owned businesses requiring more urgent funding (SBA loans usually take 30 to 90 days), there is still a flexible and affordable option. SmartBiz provides business credit lines to veteran-owned businesses, and has an easy and fast online application. Since SmartBiz has very few business type restrictions, veterans operating in a wide array of industries may be eligible for financing through. Financing from up to $350,000 is available for veteran-owned businesses through SmartBiz, and businesses only need to be in operation for 2 years to be eligible.
Conclusion
No matter what stage your veteran-owned business is in, there are lenders and loan programs out there. Because you have a veteran-owned business, you may also be eligible for decreased loan fees and other benefits. Whichever lender you choose, be sure to announce upfront that you are a veteran so you don’t miss out on any incentives.
If you operate a veteran-owned business and are interested in SBA financing, contact our recommended providers SmartBiz and South End Capital.