Today, we’re going to talk about the five best small business loans for veterans, and how you can use them to get your business off the ground and running successfully! Small businesses are one of the main drivers of the American economy, creating over two-thirds of all new jobs, and veteran-owned businesses are no exception to this rule. Even if you haven’t been working in business before, you can easily set up shop now with the right small business loan, which we’ll go into more detail below.
SBA Express Loan
The SBA Express Loan is a great option for veterans who are looking to start a small business. This loan is backed by the Small Business Administration, so you can be sure that you’re getting a good deal. The interest rates are reasonable, and you can borrow up to $350,000. You’ll need to have good credit to qualify, but if you do, this is a great loan to consider.
5 Best Small Business Loans for Veterans Listed below are 5 of the best small business loans for veterans . Read on to find out more about each. 5 Best Small Business Loans for Veterans Continued: Commercial Real Estate
This loan will allow you to purchase commercial real estate in order to create your own work space or operate a business. If you don’t want to pay cash upfront, it’s also possible to finance up to 100% of the property’s value. Rates depend on your risk profile and how much equity you provide, but as long as you have excellent credit (above 680), then this could be an ideal choice for some people.
SBA 7(a) Loan
The SBA 7(a) loan is the most popular small business loan available and is open to veterans. This loan can be used for a variety of purposes, including working capital, equipment, and real estate. The maximum loan amount is $5 million and the interest rate is capped at 8.75%. repayment terms are up to 10 years for working capital and 25 years for equipment and real estate. If you have been in the military less than 24 months, then you qualify for an extended term of up to 15 years. You can also apply as a non-veteran if you have been in the armed forces or reserves within six months of applying. You must show evidence that your disability will last more than 6 months or will eventually result in death.
US Small Business Administration 504 Loan
The US Small Business Administration 504 loan is one of the best options for veterans looking to start their own business. With low down payments and long terms, this loan can help you get on your feet and grow your business. Plus, the SBA guarantees a portion of the loan, making it easier to get approved. The downside? You’ll need at least 2 years experience in running a small business before applying.
Federal Perkins Loan
The Federal Perkins Loan is a great option for veterans who are looking to start their own business. This loan is need-based, so you’ll need to show that you have a financial need in order to qualify. The interest rate on this loan is 5%, and it can be used for up to $5,000 in funding. You’ll have up to 10 years to repay the loan, making it a great option for those who need some time to get their business off the ground.
Home Equity Line of Credit (HELOC)
A home equity line of credit is a great option for veterans who have built up equity in their home. This type of loan allows you to borrow against the value of your home, up to a certain limit, and can be used for a variety of purposes, including starting a business. The interest rates on HELOCs are usually lower than other types of loans, making them a more affordable option.