Veteran entrepreneurs make up about 7.5% of the nation’s 5.4 million business. What is little known however, is that acquiring financing from small business lenders isn’t always an easy process. Like any entrepreneur, small business loans are used to hire new employees, purchase equipment and fund marketing expenses. Unfortunately, small business loans for veterans aren’t offered as often as one might think. Because small business lenders look for stability in their applicants, it can be difficult for U.S. military veterans, whose financial history may have gaps because of time devoted to active duty.
Are there options to obtain small business loans for veterans?
The simple answer is yes. The SBA launched the Patriot Express Pilot Loan Initiative in the summer of 2007, according to the U.S. Small Business Administration Office of Veterans Business Development. This guarantees more than $1 billion in loans for veteran-owned businesses per year.
Participating banks, small business lenders and other financial institutions will offer the patriot express loan to veterans who meet the criteria. To qualify, the veteran has to show that they received an honorable discharge from their military service. In addition, veterans must obtain an eligibility certificate from the office of Veteran Affairs and take it to the small business lender to include in their application. They must also own a minimum of 51% of the business.
What are the terms for the Patriot Express Pilot Loan?
Under the Patriot Express program, disabled veterans are eligible to apply for and receive loan amounts up to $500,000. The benefit to the Patriot Express loan is that the interest rates may not exceed 2.25% over the rate for loans that are seven years or less. For loans over seven years, small business lenders can charge up to 2.75% for loans.
Call Fast and Easy Funds today to learn more about small business loans for veterans!