How to Access Capital for Your Veteran-owned Business
By Larry Stubblefield,
It all starts with a great business idea. You’ve done the research and know this business idea could be the start of something great. But building your business requires more than a great idea and hard work – you need money.
Access to capital is essential to getting your business off the ground and through the startup phase of the business lifecycle. Whether you access personal savings or receive assistance through a loan, the U.S. Small Business Administration recognizes that capital is a tricky topic for prospective (and current) small business owners. There are a number of SBA resources you can take advantage of in order to access capital for your veteran-owned business.
Veterans typically need less than $50,000 to get started. In fact, 50% of veteran owned businesses report using $25,000 or less in capital for startup or acquisition. Tools like SBA Lender Match walk you through the process, matching you with a lender who can answer your specific needs. Qualified veterans and military members (including spouses) may receive reduced upfront guaranty fees on select SBA 7a loans. Make sure to note your veteran or military status to the lender during initial conversations. The VET Act of 2015 (effective policy) saved veterans approximately $4.8 million in FY17. Overall, this veteran fee relief has saved veteran business owners $37 million.
Still not sure what kind of capital assistance you may need? See the list below for additional resources.
To learn more about the programs available for veterans, service members, National Guard or Reserve component members, and military spouses, visit www.sba.gov/veterans.
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