For veterans who are starting a business but aren’t sure where or how they will fund their new startup, you’ve come to the right place. The U.S. Small Business Administration (SBA) is an excellent place to turn to. While the SBA doesn’t offer small business loans, they have the resources to connect you with outside lenders who have agreed to provide particular loans to former or current military, their immediate family members, and those actively serving in the reserve or national guard.

As most of us know, it isn’t always easy to qualify for a loan, and this can be significantly harder for veterans with gaps in their financial history or who haven’t established a good credit score. This is where the SBA comes into place, making your chances of receiving a loan more manageable and accessible. They’ve partnered with outside lenders to provide guaranteed, government-backed small business loans to veterans at a low cost.

Before applying for various business loans, there are two things you should do ahead of time.

1.)   The first is to come up with a business plan. It is so important to have. Your business plan should include what your startup costs will be. This can be for a business location, utilities, hiring staff, training new employees, and inventory and equipment needed to begin. Lenders will also be interested in seeing how you plan to grow your business. A well-thought-out, thorough business plan will increase your chances of receiving a loan for the needed amount.

2.)   Next, you must ensure you have all the proper paperwork together. Along with your business plan, most lenders want to see your financial statements, both bank and tax returns, and your credit history. Your credit score will play a significant role in determining your approval. The better your credit score, the lower your rates will be. They will also want documentation of your time served in the military.

Finally, the SBA also has a special program called the Office of Veterans Business Development (OVBD), specifically designed to help assist veteran entrepreneurs. Veterans can locate local programs where they can receive training and mentorship. There are also various grants offered every year by private and public institutions aimed at helping veterans with new business startup costs, so you should be sure to check those out too. 

No matter where you decide to seek funding, whether through the Small Business Administration or through some other independent organization, there are plenty of options out there for those who have served our country. Hopefully, now, you are more familiar with those options and more confident about where to begin your small business venture.