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In 2021, the total number of military veterans in the United States will reach 19 million. Most are veterans from the Gulf War era, and about 73 percent are age 50+. Veterans make up only seven percent of the current population. In 1980, the percentage reached 18 percent of the population.
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In most cases, the adjustment period can be difficult for veterans returning to civilian life. About 48 percent of post-9/11 veterans said adjusting to civilian life was somewhat (32 percent) or very (16 percent) difficult for them. Veterans can find it difficult to relate to people who will never understand their military experience.
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Another major barrier to transition is that finding work can be difficult for many vets. Converting wartime skills to civilian team work in the private sector doesn’t always work. But in typical military fashion, when the going gets tough, the going gets tough. A recent increase in the number of veterans have decided to use their unique qualities to create their own jobs.
Starting a new business can be a daunting task for anyone, and it’s easy to get in over your head. Fortunately for veterans, their service to their country has given them an added competitive advantage.
There are many types of business financing options available, especially for experienced business owners. Using these services makes it easy to get the financing you need to start a veteran-owned small business plan. Even better, they usually come with minimal strings attached.
One of the best places to find financial aid is the United States. Small Business Administration (SBA). Many business loan options are aimed at helping experienced small business owners. However, the best of these programs is the SBA Veterans Advantage program.
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The SBA offers SBA 7(a) loans to all small business and commercial owners. In 2014, the Obama administration launched the Veterans Advantage program to offer benefits to veterans who want to apply for this type of loan.
This program is only available to active military, honorably discharged veterans, disabled veterans, reservists, or the spouse/widow of any veteran who meets the previous criteria.
The main benefit of the Veterans Advantage program is that it can significantly lower your upfront loan guarantee fees. The exact discount will depend on the loan amount and several other factors:
In addition to the Veterans Advantage program mentioned above, you will also have the opportunity to take out special business loans. Many traditional banks and credit unions offer small business loans designed specifically for seniors. These are the four best business loan programs currently available for experienced borrowers:
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Veteran business loans available through Navy Federal Credit Union can be used to purchase equipment, vehicles, cash, business resources or as working capital. Loans typically have a limit of $100.00, a term of five years, and an average annual interest rate of 11 to 18 percent. Alternatively, you can open a business line of credit if you prefer a revolving line of credit to a standard loan.
Navy Federal Credit Union does not list any specific gross annual income requirements. However, they will ask if you have a debt service coverage ratio of at least 1.25, a registered business for one full year, and a credit score of 650 or higher.
Union Bank has one of the most lenient requirements for veteran business owners to qualify for a bank loan. Financial assistance from Union Bank is made possible through a loan program under the Equal Credit Opportunity Act. The purpose of this program was to help veterans get the financing they needed to start and grow their businesses.
Union Bank’s business loan size can be as high as $1 million, but any application over $250,000 will take significantly longer to process. These loans are either secured or unsecured and are available for terms ranging from 18 to 84 months. Interest rates on these loans are determined on a case-by-case basis and may vary significantly depending on the applicant.
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Accion is a microloan for small businesses that specializes in loans for startups and established companies. The purpose of the promotion is to help various business owners who cannot get serious or fair offers. A variety of loans are available to seniors, minorities, women, green businesses, food and beverage businesses, and people with disabilities.
Action’s business loan limit is only $50,000, which can be a challenge for some businesses. However, the annual interest rate can be as high as 8.99 percent, and you only need a FICO score of 576 to qualify. The money can be used for any business expense, you won’t need to put anything up as collateral, and you should be approved within five to ten days.
Technically, SmartBiz does not make any loans directly to business owners. Instead, it helps match loan applicants with SBA lenders in its network. Because SBA loans are backed by the government, they may require significant documentation.
The process usually takes at least 90 days from the time of application to the receipt of the loan. However, SmartBiz can usually determine if you qualify for an SBA loan in a matter of minutes. It won’t necessarily help with the paperwork, but it will save you time.
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SmartBiz SBA loans are available for working capital and debt refinancing. Possible loan amounts range from $30,000 to $350,000. The annual interest rate for these loans ranges from 7.25 to 10.29 percent, and the term can last up to ten years.
Additional fees may apply, including a two percent referral fee, two percent packaging fee, bank closing costs, and a 0-3.5 percent guarantee fee.
There are many different programs aimed at helping veterans start their own businesses. These various programs and grants are a great first step, but sometimes they may not be enough. If you need a business loan, the list above includes the best business loans available.
As an intuitive, you have certain core values that make you . Don’t let financial problems stop you from starting your own business. There are many useful programs to help you achieve your dream.
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The information in the guide is intended for informational purposes only. Your financial situation is unique, and the products and services we review may not be right for your circumstances. We do not offer financial advice, consulting or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since publication. Past results are not indicative of future results. Congratulations! You’re probably reading this because you fall into one of two main categories of people who need information about small business loans for seniors:
No matter what group you belong to, you participate in one of the most important parts of the American economy. Did you know that there are an estimated 2.5 million veteran majority-owned businesses in the U.S., and 99.9% of them
? These VOSB (Veteran-Owned Small Business) and SDVOSB (Disabled Veteran-Owned Small Business) owners also provide jobs for over 5 million workers!
Those numbers may have changed recently in the wake of the pandemic, but the message should be clear: Our country depends on seniors like you to start and run small businesses.
Veteran Small Business Grants: Five To Apply For
Veterans are great candidates for small business ownership. There’s something special about the values and skills you’ve acquired while on active duty that make you a natural small business owner. But as the old saying goes, “it takes money to make money,” and that’s almost certainly why you’ve come here to learn about small business loans for seniors.
We will make it as simple as possible. Our goal is to help you quickly understand what you need to know about small business loans for seniors so you can determine which one might be best for you. We will see:
First, let’s be clear that there are many ways to get financing for a veteran-owned small business. These include grants, angel investors, venture capital and many other programs designed to help veterans start and grow their businesses. For now, we’re going to focus on small business loans for veterans.
Most of the small business loans for seniors that you usually hear about are in the US. Affiliated with the Small Business Administration (SBA). SBA’s Office of Veterans Development (OVBD) offers assistance to veterans as they enter the world of business ownership, including loans.
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The SBA does not actually lend the money, but instead partially guarantees that the borrower will pay it back to the bank or credit union that originally provided the money.
There are several types of SBA loans, some available to anyone (but potentially good options for veteran-owned small businesses), as well as SBA loans specifically for veterans. These include:
As the name suggests, this loan is best if you
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