There are many ways to get finance for your business and especially for small business, the opportunities are increasing. There are many fund helping businesses like veterans. If you are a veteran and need money for expansion, these funds can help you a lot.
Always prepare an analysis of your business before asking for a loan because the clearer you are in your plan the better you can explain.
Important Points Before Taking Business Loans
You have to concentrate on some specific points:
- The type and the model of the business,
- Money needed for initial stage,
- Prepare a list of all the sources of grants and loans that you can try for,
- No. of employees you will need,
- Your projected profit and working capital required for initial stage,
- The assets that you have,
- Market situation and competition.
These details are to be well prepared and well presented to get a loan and be fully prepared when asking for a loan. Prepare a formal proposal or a project that can explain every detail about your plan and need. Of you can not prepare, you can consult an accountant or some professional.
Start up Business Loans for Veterans
- It would be better to apply for veteran specific loans to start a veteran business. There are enough specific opportunities for loans and grants and every source has different official requirements. You have to apply for the best suitable to your plan.
- You can deem the “Patriot Express Pilot Loan Initiative” from the SBA. Visit the loans for veteran’s business columns from various sources that give details about the loan.
- The maximum amount of loan that you can try for is $500,000 that can be used as explained in the loan documents. There are many formalities for specific loans that defer from source to source. You should consider every detail and fulfill all the requirements.
- You can take a look of the International Franchise Association’s VetFran internet site at VetFran.com. This website is specially designed for the veterans who are planning to start on their own.
Government Business Loans for Veterans
- It is difficult task to start a business without money especially when you have to get a loan to start a business. Government also helps these people who want to venture in to this business. Business for veteran comes under Small Business Administration (SBA) program Patriot Express Pilot Loan.
- Under this initiative, applicants can acquire up to USD 500,000 loan. They also qualify for the SBA’s guarantee of up to 75 %.
- For the loans up to $150000, the applicant gets guarantee up to 85%. The interest rates for these loans range from 2.25% to 4.75% depending on the period of the loan. You can acquire a list of lenders in your area from the nearest SBA district office.
- Center for Veterans Enterprise (CVE) provides initial funds as loan for veterans and they give out very useful information as well. They have special help line number for the assistance and they reply most of the queries as well.