Veterans who are interested in starting or expanding an existing business may want to consider VA small business loans and the benefits that they offer. These loans are only given to veterans, which makes receiving the proper funding much less difficult. Any veteran who has served on active duty, as well as some reservists, have the ability to apply for and receive a VA small business loan. It is helpful for all veterans to be aware of the minimum qualifications, as well as the application process. 

Who Qualifies?

In most cases, VA small business loans are only given if the owner is a veteran. This is one requirement that is rarely overlooked by the lender. This means that a veteran must own at least 50 percent of the company.

Recently, the Veterans Affairs Office has handed off the responsibility of issuing VA small business loans to the Small Business Administration. One of the most popular kinds of loans offered to veterans is known as a Microloan. This is a short term product that offers up to a $35k loan. One stipulation of as Microloan is that it cannot be used to purchase real estate or pay off existing debt.

The Veterans Corporation also helps veterans apply for and receive small business loans. This non-profit organization has helped many companies receive tens of thousands of dollars.

The mission of the Office of Veterans Business Development, which is part of the Small Business Administration, is simple: to maximize the use of available small business loan programs to assist veterans, reservists, and service disabled veterans who are interested in starting or expanding a business.  

Applying for a Loan

Those who are interested in applying for a VA small business loan should contact the Small Business Administration. A representative will ask you several questions in order to determine if you qualify. If you do, they will mail you an application.

Once you receive your application it is important to complete it in full and with 100 percent accuracy. If there are any mistakes on your loan application it will delay processing, while also putting its acceptance in jeopardy.

After a two week wait you should call the Small Business Administration to check on the status of your application. You will learn if it has been received and/or reviewed. If both have taken place, the representative should be able to tell you if it has been approved. If your application has been denied, make sure you get an explanation as to the reason for this.

Overall, VA small business loans are for veterans who need money to start or expand a business. There are many programs available, as well as some that sound too good to be true. If you are ever asked for money as an application fee, move onto the next program. The Small Business Administration is a legitimate operation that can help veterans receive VA small business loans, while also answering any related questions.

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