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To spread the word about this loan forgiveness program, the departments of Veterans Affairs and Education are going all out to identify potentially eligible veterans and send them applications. Veterans who successfully meet the definition of having “a total and permanent disability” may get their student loans forgiven. To continue supporting America’s veterans, the SBA Veterans Advantage reduces the up-front guaranty fee from 3% to 0% for SBA Express loans over $150,000 approved to small businesses owned by qualified veterans. This will encourage greater participation in SBA lending programs with a direct benefit to veteran-owned small businesses. Military & Veteran Debt Relief Options. Veterans and active military struggle with mortgages, auto loans and credit card debt the same as civilian consumers. Disabled American Veterans, as its name suggests, serves veterans who became disabled as a result of their service. VA Program: Home Loans for Veterans. For Native American Veterans who want to live on Federal Trust land, VA’s Native American Direct Loan (NADL) program is another option. It provides direct loans to eligible Native American Veterans for the purchase, construction, or improvement of a home. The home loan specialists at Veterans United can help you take advantage of the go-to home loan for Veterans. The veteran’s disability rating does play a role during the time of closing on a home. In fact, about a third of VA borrowers are exempt from paying the VA Funding Fee due to service-related disabilities. Disabled veterans who have VA loan entitlement are absolutely eligible for a VA home loan, and they can start on their VA home loan application today! (SAH) grant program. This helps veterans adapt or retrofit properties to meet their unique needs. Grants can run up to $5,000 and even $10,000 in some cases.
- 1 Finance a Woman Owned Business
- 2 Small Business Loan Normal Terms
- 3 8(a) Certification Requirements
- 4 Borrow Money From a Financial Institution
Veterans often face challenges when leaving the military and re-entering more traditional workforce environments. Being disabled can add to the challenge. However, most veterans have both the skills and tenacity to succeed as small business owners. Getting a new business started requires financial capital, regardless of who you are. Disabled veterans have several loan programs available to them for funding a new business venture, accessed through the Small Business Administration.
SBA Veterans Advantage Loans
The SBA offers Veterans Advantage loans for businesses with at least 51 percent ownership by a veteran. This program is available for honorably and medically discharged veterans and active duty members in the Transition Assistance Program, and respective spouses are eligible, too. Express Loans are available from $150,001 to $350,000, with no application or upfront guarantee fees. These loans have an expedited, two-day processing with a 50 percent SBA guarantee.
The SBA also offers 7(a) loans, with no loan fees for any borrower. Loan terms are for up to 10 years, though real estate loans can extend to 25 years. The SBA offers an 85 percent guarantee to lenders.
Non SBA Express Loans are available for amounts of $150,001 to $500,000. The upfront guarantee is not waived but is 50 percent less for veterans. This normal fee is 1.5 percent for loans maturing after 12 months and 0.125 percent for loans maturing within 12 months.
Putting the Business Plan Together
Lenders want to see how a new business owner will build a company, use the funds and pay the loan back. Disabled veterans, like any other applicant, must write a detailed business plan explaining the product or service, establishing the market need and including a clearly defined marketing plan.
The SBA offers Boots to Business workshops to help service members and veterans develop the new tools to become entrepreneurs, including business plan creation and presentation. There is also the Entrepreneurship Bootcamp for Veterans With Disabilities offered via Syracuse University's Institute for Veterans and Military Families.
As part of the marketing strategy, where appropriate, disabled veterans should include a discussion about the Service-Disabled Veteran-Owned Small Business Program helping veterans obtain sole-source government contracts valued up to $5 million. These are incredible resources to help develop a business plan and flesh out a marketing strategy.
Loan Application Process
SBA counselors will help in the application process and assist in finding a matching lender; the SBA is not the direct lender but instead works with SBA-approved providers. Your application will include your business plan along with all other standard loan application requirements, such as personal contact information, assets, debts and income verification. Personal credit is evaluated. You will also need your discharge paperwork to validate your status as a disabled veteran and confirm eligibility for certain programs.
Complete the application and submit it. Meet with the lender to review the plan. Be prepared to explain plan components if asked. This is a business proposal, and lenders want to see a high level of professionalism when considering a loan.
Disabled Veteran Va Loan Benefits
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About the Author
Loans For Disabled Veterans
With more than 15 years of small business ownership including owning a State Farm agency in Southern California, Kimberlee understands the needs of business owners first hand. When not writing, Kimberlee enjoys chasing waterfalls with her son in Hawaii.
Photo Credits
- military necklace image by Yulaki Khvenchuk from Fotolia.com