Business Loans for Veterans: 3 Loan Products to Consider

In the area of business loans, veterans have several options. Many lenders will offer veterans special terms on business loans that can help them get started. If you are a veteran and looking to start a business, here are a few loan products that you should consider.

1. SBA Patriot Express Loan Initiative

The SBA is the premiere organization for helping small businesses get the money they need. For many years they have been lending to small businesses in the country and helping them get started. With the Patriot Express program, you will get the best interest rate that they have available at the time. Rates can range from 2.25% to 4.75%, which is very beneficial to any business owner. This will provide you with a low monthly payment and allow some flexibility with your monthly budget. You will also have to come up with a very low down payment with most of these loans. The turnaround time is very fast with the Patriot Express program. You will usually know something within a few days of applying for a loan. You can borrow up to $500,000 with this program, which will allow for a number of different business functions. You can use the money for startup, expansion, working capital, or even real estate purchase. This is the most flexible loan option with the most benefits for veterans. 

2. Local Banks

When you are looking for a loan program as a veteran, you will not want to overlook your local bank. Many of them have special discounts or programs that are designed for veterans. These programs can range from a simple interest rate deduction to a comprehensive veteran loan program. You will never be aware of the programs unless you search your local area for potential loans. 

3. VA Business Loans

The VA does not directly offer a business loan program for veterans. However, they do work in conjunction with the SBA to offer loans, and they have a variety of programs that are designed to help veterans start businesses. The Veterans Entrepreneur and Small Business Development Act of 1999 ensures that they will have options in front of them for loans from the SBA. As long as the company has 51% ownership by a veteran, the business can apply for assistance. 

With the Veterans Business Outreach Program, you can also get help starting your own business. This organization works in conjunction with the VA and provides networking opportunities to help find loans and training to run your business properly. There are many VA programs that can help you in your new endeavor. Therefore, it is up to you to take advantage of them.